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Which of the following is NOT a possible reason why Uber opted to expand its on-demand transportation services into foreign markets?

to spread its business risk across a wider geographic market base

to capitalize on company competencies and capabilities

to gain access to new customers in new markets

to build the profit sanctuary necessary to wage guerrilla offensives against global challengers endeavoring to invade its home market

to achieve lower costs and enhance the firm's competitiveness.

2 Answers

4 votes

Final answer:

Uber might expand internationally to spread risk, leverage competencies, reach new customers, and lower costs, but creating a 'profit sanctuary' to wage 'guerrilla offensives' is not a typical business expansion rationale.

Step-by-step explanation:

The question explores the strategic reasons behind Uber's decision to expand its services into international markets. While there are several legitimate reasons for a company like Uber to pursue globalization, the statement "to build the profit sanctuary necessary to wage guerrilla offensives against global challengers endeavoring to invade its home market" is not a conventional rationale for market expansion. The typical reasons for a company to expand internationally include spreading business risk across more diverse environments, capitalizing on company competencies in new markets, gaining access to new customers, and potentially achieving lower costs to improve competitiveness.

3 votes

Answer:

D

Step-by-step explanation:

Uber can invest in foreign markets for other reasons stated except to build the profit sanctuary necessary to wage guerrilla offensives against global challengers endeavoring to invade its home market

User Pavel Dubinin
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