International Business Management - Uber’s Foreign Market

International Business Management - 2604

Uber’s Foreign Market Entry Strategy Travis Kalanick got the idea for Uber while trying to hail a cab in Paris. • Kalanick wanted to take advantage of smartphone technology to build a ride hailing app. • The app allowed for GPS tracking, automatic electronic payment, pre-ride display of pricing, estimation of wait time, and driver ratings. Uber’s strategy focused on cities around the globe where demand was likely to be high, picking cities designed as “accelerants” with concentrated needs. • Ignored local regulations in favor of rapid growth and building its own networks. • Strategy worked in the U.S. and Latin America, but not everywhere. Today, Uber has realigned its foreign market entry strategy. fifg/Shutterstock

Ways to Enter Foreign Markets • Exporting. • Licensing or franchising to host-country firms. • Creating a joint venture with a host-country firm. • Creating a wholly owned subsidiary in the host country. • Acquiring an established enterprise in the host country.

Introduction

For this assignment, you will explore how an international business develops strategies to minimize risk when expanding into new markets

Assignment Instructions

1. Read the opening case: Uber’s Foreign Market Entry Strategy in Chapter 13 of the Global Business Today 12th ed. Text.

2. Based on your reading and additional outside research, prepare a 2 double-spaced page response to the following points:

· What factors influenced the decision for Uber to expand into international markets before it had completely developed its domestic presence in the U.S.?

· How does the way Uber operate in "developed" economies differ from its strategy in "emerging" economies?

Submit your paper as a single MS Word formatted document by the posted due date.

Requirements

· Length: at least 2 double-spaced, 12 pt. font pages, not including title and reference page(s).

· Do not paste quoted content into your paper. Paraphrase your sources.

· Use in-text citations to distinguish every idea that you take from your research.

· On your reference page, list the author, date, and title of each source used in your paper. Provide links or page numbers where it can be found.