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LSBM306 Strategy, Enterprise And Innovation

Introduction - LSBM306 Strategy, Enterprise And Innovation

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1. A Brief Introduction for The Case Study Analysis Report

The core attempt of businesses in the commercialized environment is to develop a sustained market dominance over the competitor. The key is to establish a value structure that attracts both investors and customers. Grab Holdings Inc., better known as Grab, is a Singapore and Indonesia-based technology firm (Widyatama etal., 2020). Food delivery and digital payment services are also available through a mobile app provided by the firm. The company has aimed at enhancing and creating better cities by providing technology solutions. Traffic jams and a lack of public infrastructure are common problems for Southeast Asians on a daily basis. Grab attempts to resolve this issue by simplifying everyday services.

Being a leading market giant of south-east Asia, Grab has established a prominent market mark in the recent past and is continuing to grow its potential through several strategic approaches and changed practices in favour of the company (Ezzatul etal., 2019). The company has actively initiated corporate practices to leverage its market and capitalize on the exciting and prospective economic opportunities. In this report, the strategic approaches of the company will be evaluated with creative and analytical rationale to justify the objective of the report.

2. Utilisation of Appropriate Frameworks and Tools to Identify and Evaluate the Key Drivers of Innovation

Key Drivers of Innovation for Grab’s Success

  1. Grab Mastered the Super App: There are a number of factors that contribute to the rise of so-called "super apps." As an example, Grab provides services like transportation, bill payment, and food delivery. Go-Jek and Grab both owe their success to this element, which Uber abandoned in Southeast Asia a year ago. Grab, like other super-apps, offers its users with sufficient perks and features to prevent them from ever having to leave the app (Moullin et al., 2019). Every aspect of the process may be covered at any given moment. Customers in Vietnam may now pay bills, reserve hotels, buy meals and send shipments all via the Grab app.
  2. Grab has Rewards and Subscriptions: Consumer loyalty is being bolstered by the use of reward schemes. Grab is now rewarding users with reward points when they make purchases using the app (Lim et al., 2018). Cash certificates at KFC, Starbucks, or free Grab bikes may be exchanged for points that can be redeemed.
  • R&D as a Differentiator: In Vietnam, Grab has proven a long-term commitment to the country. At Vietnam, Grab currently employs more than 1,000 people, including more than 100 engineers in its research and development centre. To do so is a wise decision. One of the growing hotspots for IT talent in the area is Vietnam as we all know (Moullin et al., 2019). It's also a huge advantage for the firm since it can now provide an entirely mobile-first solution for its customers. Using this, students will be able to get both a thorough grasp of local culture and the greatest possible engineering.
  1. Hyper Localisation: It's easy to see just how well Grab has adapted to the unique transportation demands of each Southeast Asian country: "GrabBike in Vietnam", "GrabBajay (three-wheeled motorcycles) in Indonesia", "ThoneBane in Myanmar", "Tuktuks in Thailand", and "Remorque in Cambodia". To business, the most important aspect of the Grab service in a nation is serving clients and providing them with an exceptional consumer experiences (Lim et al., 2018). Grab's director of regional operations. Grab is one of the world's most powerful tech businesses, and they're obviously aware of the "ABCD Technology's" potential. For example, in certain countries, conventional forms of transportation are being promoted as a result of data gleaned from Grab's consumers and drivers on its network. Businesses may utilise real-time integrated information to automate processes and better comprehend their consumers' market demands.

Self-Designed Diagram (Mini Poster)

 Through analysing the above-mentioned diagram, it becomes considerable that there are several significant key drivers of innovation during the organisational business operation Grab in the international platform. These key factors or drivers effectively help the organisation in order to develop its potentiality and innovation within the workplace environment (Saura, 2021). Due to the existence of this key drivers, nowadays, Grab has been able to launch different mobile apps for different kinds of activities like payments, transportation, booking for hotels, taxis, etc. Moreover, the “Grab for Good”, a social impact initiative in conjunction with Microsoft to inspire millions of individuals and provide equitable possibilities for all customers in a digital financial push for the area.

Grab has set lofty targets for 2025 based on its unique technological platform and strong alliances in Southeast Asia, led by its two major programmes, notably the "Grab for Good" social impact programme and the global "Break the Silence". To achieve this objective, "Grab for Good" aims to work with governments, commercial businesses, and non-profit organisations throughout Southeast Asia and beyond to deliver digital literacy and broader inclusiveness including over 3 million people through 2025 (Hirst et al., 2019). More than 5 million microbusinesses and small businesses in Southeast Asia's economy would benefit from Grab's efforts to support them.

3. Application of Appropriate Strategy Frameworks to Critically Analyse the Different Approaches Undertaken by Grab

Porter's Generic Strategy

Cost Leadership

This competitive plan is founded on a business's attempt to be the lowest-cost provider in the market by continuing to pursue effective large-scale production units, reducing expenses, leveraging economies of scale, and obtaining production experience (Islami, Mustafa and Latkovikj, 2020). The primary objective is to become more focused on the quality of products or services than rivals. This also suggests that a corporation may lower its rivals' prices via price war and yet deliver similar value for appropriate profitability if it has low costs. Grab has incrementally transformed their price strategies from the beginning and focused on promoting its lower price strategy into their limited area of share in SEA (Kee etal., 2021). Grab has also implemented the dynamic pricing strategy where they have established variable prices for their goods or services depending on the prevailing market forces.


To be distinct from the competition, a corporation employs differentiation as a competitive strategy: the objective is to stand out. This might be achieved via innovative marketing, distinguishing characteristics, superior quality, great customer service and/or cutting-edge technologies. Differentiation strategies may minimise competition if customers are loyal to the brand. In order to succeed in a competitive market, businesses must have powerful customer commitment. Grab has gained traction with a swift move to the adaptability with emergence (Healey, 2020). The company has navigated the competitive SEA market with their continuous state of exigency, its hyperlocal strategy and rapid implementation enabled it to innovate quicker and provide better solutions for the consumer.


When a company focuses on a certain market or customer group, it's a kind of competitive strategy known as "clustering." Only a select group of customers will benefit from the business's strategy of differentiation or cost leadership, not the whole industry. Previous to tailoring its approach, the company first picks one or a few sectors of industry to emphasis on and then customise its method accordingly. Differentiation Focus and Cost Focus are examples of focus strategy variations. Differentiation and Cost Leadership vary purely in terms of their competitive strategy from these two methods (Hussain etal., 2018). Grab's team, opportunity to get the ability to quickly alter the product to fit the demands of the customers if they stick to a hyperlocal approach. A defensive barrier is built over time as a result of these changes, which allows businesses to reinvest and operate with increased certainty (Widyatama etal., 2020). The company had therefore stuck to the product feature and differentiation approach to settle in the market.

Ansoff Matrix

Market Penetration

Market penetration is a method of expanding a company's market share. In other terms, a business uses a market penetration strategy in an effort to expand its market share (Hunter, 2020).

Businesses may practice a variety of approaches to execute this strategy, such as: 

  • Reducing costs in order to attract prospective customers
  • Promotion and marketing actions should be stepped up.
  • Acquisition of a rival in the similar market

Grab has capitalised on its market penetration strategy to enhance its relative market share (Healey, 2020). It has involved a consistent pricing approach and extensive promotional practices to attract the customers of the SEA, it has also increased the market share by the acquisition of Uber in south-east Asia.

Product Development

Creating a new product for a current market is a crucial component of a product development approach. This usually necessitates a significant amount of product development and research on the part of the organisation (Hunter, 2020). When a corporation has a comprehensive grip of its current marketplace and can bring exclusive solutions to fulfil that market's requirements, the product development method is used.

There are a variety of methods to apply this technique as well:

  • investing in research and development in order to create new goods to meet the requirements of the present marketplace
  • Making a new product that better contents the requirements of the existing market by buying a competitor's product and combining resources
  • Sharing distribution channels or brands by forming strategic alliances with other companies.

Heineken-Grab agreement reinforces Grab's all-in-one network providing to merchants and brand associators so that they, also, receive a seamless experience. Grab is already Southeast Asia's daily “super-app” for customers. There are a number of ways for these businesses to make use of Grab's huge user base of customers and consumer analytics as well as its transportation network and technical infrastructure (Hussain etal., 2018). With first-to-market innovations targeted at satisfying customers and changing the customer experience via technology, it has raised the standard for the whole industry. By bringing together HEINEKEN's goods and Grab's many interfaces, this cooperation is definitely a standout in Southeast Asia. Both HEINEKEN and GRAB stand to gain even more market share in the area as a result of this move, which they expect will enable businesses to better serve their consumers. This has proven to be beneficial for both the brands to get customer preference and gain better market share.

Market Development

In a market expansion plan, a company enters a new marketplace with its existing offerings. Exploring new markets in this sense might signify a variety of things, including, but not limited to, new geographical areas, client categories, etc (Adam etal., 2020). Grab does not have any plan to expand its market and go international as the founders have confirmed that there is still a great opportunity for business and market dominance in Southeast Asia and the company wants to focus on this region.


To diversify, a company introduces a new product into a new market. Given the need for both market and product development, this approach is the toughest, although it may be reduced by diversifying (Ezzatul etal., 2019). Diversification is not selected by Grab as it has kept its focus on existing markets.

4. Application of Appropriate Blue Ocean Frameworks and Tools to Compare Grab and its Competitors

Strategy Canvas and Value Curve

For example, the horizontal axis of the strategy canvas represents the variety of variables that a sector is competing on and investing in, while the vertical axis records the providing degree that purchasers get throughout all of these main competitive criteria. Graphic representation of a firm’s relative effectiveness in its industry's elements of competitiveness is shown by a value curve or strategic profile. Using a strategy canvas, your firm may see all the variables that industry competes on and invests in, what purchasers get, and what the strategic profiles of the big competitors are in a single image (Strauß, 2020). Companies' methods seem to consumers to be almost identical, revealing how they are driving the sector into a state of "red ocean”. It's important because it establishes a consistent baseline from which to measure progress.

The strategy canvas provides two functions:

  • Using this tool, customers can clearly identify the variables that an industry competes on and engages in, what purchasers get, and what the tactical characteristics of the top competitors are in the recognised market area.
  • A blue ocean strategy shifts the emphasis from rivals to alternatives and consumers to consumers or potential consumers of the industry, allowing people to see how a blue ocean strategy breaks away from the red ocean reality.

With its smartphone app, Grab serves customers in Southeast Asia by providing a range of services including "taxi hailing", "ride sharing", and "food delivery", among others. Its services are now offered in nations including "Malaysia", "Indonesia", "Thailand" and the "Philippines". Grab purchased Uber's Southeast Asian business in March 2018 and Uber now owns a 28 percent share in Grab, which is a result of the acquisition. With more than 60 percent market share in Southeast Asia, Grab is expected to benefit greatly from this transaction. A recent investment transaction valued Grab at $10 billion, and the company received $2 billion for future expansion (Eltobgy and Abd Elmoaty, 2018). If everything goes well, Uber's operations will be integrated into the corporation and it will expand into ride sharing and online payment. Grab's primary value determinants and the anticipated valuation increase if revenue growth targets of 100% in 2019 are realised are examined in this interactive dashboard "Estimating the Valuation of Grab".

Last two years have seen a considerable increase in the number of rides booked using Grab's mobile app. Throughout 2017 and 2018, the number of users almost doubled, and the average daily trips went from 2.5 - 3.5 million to 6 million. The organisation foresees a considerable increase in the organisational user base in 2019 as a result of the company's purchase of Uber in the area, its expansion of bike sharing efforts, and its continued dominance in the Southeast Asian market (Madsen and Slåtten, 2019). This will increase the number of rides taken each year and increase income. This year, we anticipate that the company's total amount of trips and total sales will bring in an average net income per ride of $2.50. After Uber's purchase of Southeast Asia's business, we expect this amount to rise to $3 in 2019. Having less competition means that Grab may also aim to lower discounts, resulting in more income.

Over the next several years, we anticipate Grab's drivers to pay a 20% commission, and this percentage is expected to stay the same. Grab has an anticipated sales multiple of roughly 10x depending on its most current value and forecasted 2018 sales. Based on its most recent value of $76 billion in August 2018, Uber's revenue multiple was roughly 5x, while Didi Chuxing's valuation multiple was approximately 7.5x (Anthony, Igweh and Stephen, 2019). According to the company's stated goal of generating net sales of $2 billion in 2019, the company's value may rise to $16 billion with a lower revenue multiple of roughly 7x.

Aiming to become a "everyday app," Grab is expanding into sectors like "online groceries", "food delivery", and "payments", and is focused on growth efforts. As a result, the company's ability to successfully negotiate regulatory constraints and competition from other local competitors will be vital to its future development (KOCA and SA?SAN, 2020). With its market domination and volume, as well as development into other industries like as food delivery, Grab is expected to become more lucrative in the future. Even if multiples decrease, it thinks Grab's value will rise in the short term due to its great growth potential.

In this aspect, it is considered that by utilising the strategy canvas, Grab will be able to proficiently develop its competitive advantage by introducing different kinds of service facilities for the consumers. On the other hand, the Value Curve model also help to analyse and compare the organisational competitors with itself. In this way, Grab will get sufficient knowledge regarding its lacking by seeing the downward of Graph in the value curve model (Gobble, 2018). Thereby, the organisational executive of Grab will make efficient decision for developing and fulfilling their lacking during their organisational business operation in the market. In this way, the graph will go upward by enhancing the competitiveness of the organisation.

5. Conclusion

Companies in heavily marketed surroundings strive to establish a long-term advantage over their rivals. Creating a compelling value proposition that draws both stakeholders is the most important part of the process. "Grab" is a Singapore and Indonesia-based technology company known as "Grab Holdings Inc." A smartphone app developed by the company offers food delivery and digital payment systems. Southeast Asians deal with transportation issues and a dearth of infrastructures on a regular basis. Grab aims to alleviate this problem by reducing the complexity of common services. In recent years, Grab has made a name for itself in the South East Asian market, and it continues to increase its potential via a variety of strategic methods and changes in business procedures to its advantage.

In order to take advantage of current and future economic prospects, the organisation has implemented new corporate processes. In this report, a proper arrangement has been established to outline Grab's current advantages which it gained from its strategic approaches such as collaborative partnerships, extensive focalized approaches for its existing market and product improvements to cater for the targeted customers. The report has managed to compile a set of framework-oriented underpinnings to support the core objective of the report to boost the viability of the rationale. The attempt of the report has been to establish a coherent understanding of the processes on both the competitive and corporate levels so that a potential insight can be found on the strategic traction of the company.

It has also allowed the understanding of the blue ocean strategies specifically which further helped to develop the relationship with the company. The document has provided a critical outlook on the matter of strategic approach for market grip and competitive edge adopted by the companies which capitalize the existing opportunities in favour of long-term benefits. In a nutshell, an analytical approach has been weaved to establish the core structure and build relevancy.


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