Case study: Ola has completed 2 years of operations in Jaipur without any competition. Suddenly, Uber enters Jaipur with ride charges 20% lower than Ola and driver incentives 20% more than Ola's. What should Ola do?

Question

Accepted Answer

Ola should analyze the situation and take strategic actions to maintain its market share and competitive advantage.

Conduct a thorough analysis of the market, including customer preferences, demand, and competitor strategies.
Identify Ola's unique selling points and strengths compared to Uber.
Consider adjusting pricing strategies to remain competitive without compromising profitability.
Enhance driver incentives and benefits to retain and attract drivers.
Invest in marketing and promotional activities to reinforce Ola's brand presence.
Improve the quality of service and customer experience to differentiate from Uber.
Explore partnerships or collaborations with local businesses to offer additional benefits to customers.
Continuously monitor and adapt to market dynamics to stay ahead of the competition.

Accepted Answer

As its app base operation , Ola should increse the incentive cost in Jaipur , more driver will switch to drive through ola instead of Uber. The market share automatically get shifted to Ola

Case study: Ola has completed 2 years of operations in Jaipur without any competition. Suddenly, Uber enters Jaipur with ride charges 20% lower than Ola and driver incentives 20% more than Ola's. What should Ola do?

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