Question

4 strategies to global expansion: organic, chain acquisition, franchise, joint venture licensing.

Consider the company Uber - What would be the most likely entry strategy for the company to use given the chosen country is Cuba or Haiti. Explain why.

Answer 1

Cuba follows the planning system for its economy. In Cuba most of the industries and firms are controlled by the government. Cuba is not very open to private enterprises. Hence, for Cuba, it is better to have a joint venture licensing for Uber. In joint venture licensing, Cuba might offer Uber to do a private public enterprise. In this case, Government will also have its Iwan stake and even Uber will also have its own stake.

Haiti is an open economy, where free market exists. Haiti is open to export and import goods and services. Haiti has low or no tariff rates. In an economy like Haiti where private investors can invest their money as their is no restrictions from the government, and, moreover, the government encoutages private entrepreneurs to invest in the economy. For Uber to make an entry in the market of Haiti it can go ahead for a chain acquisition licensing. Under might introduce it's cars in many cities of Haiti in way if chain acquisition.