Analysis of reasons for the failure of enterprise localization and suggestions for development in the future: the example of Uber China

Abstract

The failure of enterprise localization is the key problem that enterprises consider when developing internationally. Therefore, the topic researched in this paper analyzes the reasons for localization failure of Uber China. First, this paper reviews the direct reasons for leading localization failure of Uber China, including finance, product, after sales, policies, and other elements. Second, it compares Uber China with its biggest competitor in the industry, DiDichuxing, comparing their business models using the four elements model and analyzes whether both their characteristics and advantages have reference meaning or not. Finally, this paper compares the overseas expansion of Uber China and DiDichuxing. The research results indicate poor performance of Uber China for end users, convenient service with the advantages of global enterprises, and user dissatisfaction with its payment and after-sales. In the analysis of the business model, DiDichuxing performs better in customer value intentions and profit model. Consequently, through the comparisons of reason analysis, business mode, and overseas expansion, this paper suggests an marketing strategy, after-sales improvements, and consistent strategic focus, revenue focus, and management structure.