The Uber service is banned in Malaysia. Which strategy in Global Marketing should be used to enter the Malaysian market?
Identify and apply global marketing concepts of Licensing, Investment and Strategic Alliances strategies in analyzing the issue.
Reference List 7
Here in, the marketing strategies employed for global marketing has been elaborated. The focus is on the fact that “The Uber service is banned in Malaysia”. This essay also incorporates the different issues that are faced by the organization while operating in this Malaysian market. In this essay suitable recommendations have been provided which might enable the organization to operate within the Malaysian Market easily. The suggested recommendations would facilitate the Uber brand to freely enter and effectively operate in the Malaysian market.
Every organization hopes for operating within the Global markets in order to expand their businesses. As the external environment of the Malaysian market does not allow facilitated entry for any international players, the Uber is presently banned in the market. In this line, the strategies significant for the new entrant organizations need effective analysis.
The Uber services have been banned in Malaysia majorly for licensing issues encountered by the organization. In the context of Malaysian licensing, it must be added that the international organizations, which want to operate in Malaysia must be able to comply with several licensing laws. In the case of Uber, the organization failed to incur the licensing in Malaysia for which the services have been banned in Malaysia (Chung, 2012).
While considering the overall issues confronted by Uber services, it can be opined that the organization while operating in Malaysia also faced issues regarding investment. Investment is regarded as one of the most effective factors that enable an organization to operate with ease within the markets (Chung, 2012). Several organizations did not find the company to be effective enough in its operation and for this very reason, the investors were not interested to invest in the company. Due to the lack of investors, it has become challenging for the Uber services.
In such a scenario, operating in the global market would require strategic alliance for a new organization to expand and sustain in the new, international markets. Uber can use the strategic alliance theory to make proper entry in the market again. Strategic alliance indicates to the scope of merging with an already established organization in the market so that the new penning company is able to achieve their support for their growth. However, the Uber services also failed to obtain the appropriate strategic alliance due to governmental regulations that would have, otherwise, enabled them to sustain within the international market.
Resource based strategic alliance theory is mostly used by the organizations in order to sustain in the competitive market and at the same time expand its operation in the market. Marketing strategies are essential to cater the organizations with the ability to operate within the market with ultimate potential (Copulsky, 2011). Therefore, it is clear fact that Uber failed to cope up with the marketing strategies that are available in Malaysia. The most effective strategies that must be considered by the new entrant organizations in Malaysia are mainly, joint ventures, indirect exporting, direct exporting, strategic alliance, and direct foreign investments. However, the choice of a market entry policy is determined by the external influence and its current features. It has been observed that in Malaysia small business owners employ the strategy of direct exporting strategy by involving a distributor. Thus, it is essential for every organization to make the selection of the proper strategies in order to sustain within the market. In order to operate within the Malaysian markets, it is essential for the organization to comply with the strategies that would benefit the organizations the most for their progress in the Malaysian markets.
The marketing strategies exploited by Uber were not effective enough which could have permit them to operate within the Malaysian markets with ease. For this reason, it can be stated that the organization should have used the direct exporting strategy and the Strategic alliance theory with other renowned companies of Malaysia which in turn would have revived the organization within Malaysia. By using the direct exporting strategy, the organization could have easily outsourced its services which in turn could have increased its customer base at the initial stage. In addition to this, by employing the Strategic alliance policy, the organization could have effectively merged with a renowned company in Malaysia, which has supported the organization for its growth.
From the above discussion, it is quite clear that the strategic alliance theories and strategic marketing planning are regarded one of the essential factors that would help an organization to expand its business. In the case of the Uber Services, it can be stated that the organization must have incurred certain strategies which would have helped them to operate within the Malaysian market with efficacy. Due to the failure of selecting the proper marketing strategies the organization encountered a downfall of the business within the Malaysia.
Chung, H. (2012). “Marketing Control and Marketing Standardization Strategies: An Integrated Typology”. SSRN Electronic Journal, p.45
Copulsky, W. (2011), “Strategies in industrial marketing” Industrial Marketing Management, 5(1), pp.23-27