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Uber Company’s Entry into Chinese Market Essay

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Updated: Sep 22nd, 2020

Problems and Analysis

Challenging legal frameworks is one of the problems experienced by Uber in China. The country’s legal frameworks are not receptive to companies that operate without a license. Therefore, when Uber entered the Chinese market and used privately owned cars to provide taxi services, it experienced issues relating to legal frameworks in the country. A good example is evident on the first page of the case when the country’s authorities raided Uber offices claiming that the company was operating illegally.

Solutions

To manage the aforementioned problem, Uber has to institute a number of policies. Intensive lobbying and cooperation with competitors and likeminded organizations are some of the policies or solutions that Uber needs to undertake. Notably, the problem of policies and legal frameworks requires intensive lobbying from the company and its competitors. It is important to explain that lobbying is an initiative that needs cooperation from all taxi and chauffeur service providers in the country. Moreover, the companies providing taxi services can also work together with organizations such as transport organizations to present their perspectives to the government. By working together as a team, they will be in a better position of explaining their relevance to the government successfully and convince it to license their operations. Initiatives such as the one advanced by the Shanghai transport committee need amplification so that the government realizes the importance of allowing taxi and chauffeur services offered by companies like Uber.

Advantages and Disadvantages of the Solutions

The initiative by committees such as that one of Shanghai, which strives to persuade the government to accept unlicensed taxi operators, can help Uber enjoy a market that has minimal legal impediments. The disadvantage of the initiative can take place if these organizations demonstrate bias and champion for the rights of domestic companies excluding Uber. Moreover, the competitors may not accept to work together with Uber because of the fear that it may only advocate for its interests. It is imperative to state that the absence of support and cooperation from Uber and its competitors is a disadvantage because the effort to persuade the government requires teamwork. In instances where one company or committee undertakes the initiative alone, the results may not be practical.

Recommendations

Some of the recommendations championed by the case comprise research and cooperation. Research is the main recommendation because it helps the company understand various strategies that it can utilize in order to address the legal problems prevailing in the country. Through extensive research, Uber can understand the strategies needed in order to convince the Chinese government to license its operations. Moreover, the company will know the tactics that are useful in convincing other competitors and organizations to work together for a common goal of ensuring that the government legalizes its operations. Through research, the company will identify teams that they can work together alongside its competitors towards having taxi operations accepted in the country. Research also helps the company prepare a good defense that will not only convince the government to license its operations but will also go a long way in justifying the relevance of its initiative in the country. Through cooperation and research, the company can present its suggestions to the government and effectively convince it to license its operations and those of its competitors.

John Doe

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IvyPanda. (2020, September 22). Uber Company's Entry into Chinese Market. Retrieved from https://ivypanda.com/essays/uber-companys-entry-into-chinese-market/

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"Uber Company's Entry into Chinese Market." IvyPanda, 22 Sept. 2020, ivypanda.com/essays/uber-companys-entry-into-chinese-market/.

1. IvyPanda. "Uber Company's Entry into Chinese Market." September 22, 2020. https://ivypanda.com/essays/uber-companys-entry-into-chinese-market/.


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IvyPanda. "Uber Company's Entry into Chinese Market." September 22, 2020. https://ivypanda.com/essays/uber-companys-entry-into-chinese-market/.

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IvyPanda. 2020. "Uber Company's Entry into Chinese Market." September 22, 2020. https://ivypanda.com/essays/uber-companys-entry-into-chinese-market/.

References

IvyPanda. (2020) 'Uber Company's Entry into Chinese Market'. 22 September.

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