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CHINA

SAN FRANCISCO

Reasons for Failure

Expanding to China

Entry Strategy

Overview of Uber Technologies

Uber's Organizational Structure

AAA

+

Global Aggregation

Local Adaptation

Similar Customer Needs Globally

Revenue from Local Markets

- Late 2013-early 2014 they expand to China

- Potential Market

- 80+ cities with 5 million people

-Urbanization and growth

What they did correctly

- Saw the potential an tried to get in early

- Tried to do a type of Joint venture with their biggest competitor: Didi Chuxing but rejected

- Got local investors, managers and partnerships

- San Francisco, March 2009

Travis Kalanick and Garret Camp

- Two Components (Passenger and Driver)

- Reasons for Expansion

- Easy to implement

  • Corporate Structure
  • Organizational Culture
  • Scandals
  • Corporate Social Responsibility (CSR)
  • UN Women
  • Meals on Wheels America

- Didn't evaluate the CAGE

- Didn't evaluate the past history with tech companies in China (Amazon, Google, Facebook...)

- Aggressive measures, too ambitious ($1B loss per year)

- Problems in other countries should have warned them.

- China's Government banned unlicensed taxis (private cars) and Didi was able to capitalize

End Result

- Didi Chuxing acquired Uber in China

Strong Regulatory System

International Standardization

CRAIG

LUIS

VS

INDONESIA

Successful Expansion: Indonesia

Uber Pricing in Indonesia

  • Why Indonesia?
  • CAGE Analysis:

REGULATIONS

Uberland needs Regulation

(World Economic Forum 2016)

  • Utilization of core competencies
  • Implications

Employment

Taxi

Companies

Legislative/Policy

Issues

Product Demand

Uber's Strategy

& Rivalry

Promotional Codes & Low Prices

Transferring Drivers

Larger & Younger Population

Faster Transportation

Innovation

Improve Quality

Investments

COMPETITIVE

ADVANTAGE

Supporting Industries

Basic & Advanced Factor Endowments

Climate

Skilled Labor

Work Together

Taxis/Motorcycles

Infrastructure

UBERLAND

Assessing the Global

Strategy of Uber

Conclusion & Recommendations

- Evaluate local competitors - there are foreign ride sharing apps in almost all countries now

- Continue to adapt to local regulations

- Seek governmental approval to avoid large losses

- Continue to fix organizational structure and improve workplace environment

Aileen Aebischer, Simone Cowan, Zahra Kheraj, Gilberto Morrice, Neerja Patel, Samyuktha Warrier

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