Group 5

Win, Ray, JC, & Peter

Presentation
Outline:

● Case Background

● Industry Overview

● Business Model

● Statement of Objectives

● Areas of Consideration

● Learning points
Case Background
Case Background

Grab is a multinational ride-hailing company. In additional to

transportation, Grab also offers food delivery and digital payments
service via a mobile app. It now operates in the Southeast Asia countries
of Singapore, Malaysia, Cambodia, Indonesia, Myanmar, Philippines,
Thailand and Vietnam.
● In 2012, MyTeksi app was launched by Anthony in Malaysia;
● In 2013, MyTeksi was introduced to Philippines under name ‘Grabtaxi’;
● In 2014, MyTeksi received ‘series’ B funding of $15 million;
Case Background

● In 2015, Grab spread its GrabBike’s motorcycle service;

● In 2016, GrabTaxi was rebranded as ‘Grab’, its products are Grabcar,
Grabbike, Grabhitch and Grabexpress. And Grabshare and GrabChat;
Meanwhile, Grabpay service was launched;
● In 2017, Grab acquisitioned Kudo, it is Indonesian online payment platform;
● In 2018, Grab merged Uber’s SEA operations;
● In 2019, Grab entered Japan and Middle East.
Company Overview
Company Overview

● Grab is in the Transportation Industry.

● Also involved in the Online Food Ordering and Food Delivery industry. However, for this
study, the group focused on the company’s core business which is Transportation.
● Grab has become the leading provider of ride-hailing, fintech and marketplace service in
SEA.
● From advancing its leadership in transportation technology, to expanding its delivery, digital
payments and financial services offerings, to launching an open platform “GrabPlatform” to
support other local developers and services, Grab is providing solutions for Southeast Asians’
everyday needs in one convenient app
Statement of Objectives

Strategic Objectives:

● To increase its market share in Southeast Asian regions

● To increase its core businesses or offerings in Southeast Asian
regions
● To increase customer retention and acquire new customers
● To determine what strategies Grab should undertake that is in line
with its current competitive position
Industry Overview
● In a wave of entrepreneurship in the early 2010s,
in which every industry was to be transformed
through the deployment of technology, Uber and
Lyft were born
● In South East Asia, Grab and Go-Jek are
considered “super apps”
● SoftBank, which owns shares in both Grab and
Go-Jek, is pushing for a merger of both operators,
to strengthen them through the pandemic.
● In 2020, global revenues plummeted
impacted by the Covid19 pandemic.
● Although not as drastic as the US and
UK. Didi, Grab and Gojek announced that
operations were back up to pre-pandemic
levels, they assume this has remained the
case throughout the year
● Uber leads in several key markets, while Didi
is responsible for 95 percent of ride hailing in
China.

● Grab and Go-Jek compete in South-east

Asia, and their high valuations may be due to
the expansive network of services both
provide, including food delivery.

● Western operators, such as Lyft, Cabify and

Gett, have not broadened their operations in
the same way.
Business Model
Business
Model
 Firm infrastructure
IT infrastructure like Grab App on Android or IOS for merchant, rider and customers , Grab website,
regional offices, head office included different departments.

Human Resource management

Managing people in Grab has two types, like inhouse staff who work directly in operational offices and
outhouse like riders or merchants. That is also included in human resource management to make sure
operation will be worked well.

Technology
It is upgrading continuously in their Apps and Tech platform. There are more features provided to have a
friendly using and convenient for customers. At the same time it should optimized on all sites for
Merchant, riders and customers. Value
chain
Procurement
Grab starting from taxi app but it doesn't require to purchase vehicle for it purpose. So it’s more about
keep upgrading technology and customer experience.

Operation Outbound
Analysis
Inbound Logistic Services
Logistic Marketing & Sales
● Map is tracking ● Grab need to
● * Services is targets that is to ● Book on the
●Time is ● Nearest rider or
booked thru bring more app
optimized in the location
phone by merchants at the ●Reviews on
●Providing more can approach to
customer, same time having services and
option for customer
● Merchant more customer customer
customers by ●The road is ●Referral incentive
also accept order feedback
creating more optimized in the ● Points to redeem
thru their gadget ●Customer
merchants shorested time ●including online support
●Quality of ● Connecting the shopping from
● ●Merchant
service can be customers with Grab app
support
rate by customer merchants.
PESTEL Analysis
 ● Allowed by government and limited by ● Solid growth of SEA economy;

P ●
some regulations;

Increasing tax in petrol

E ●
●
Increasing income of people;
Increasing unemployment.

● Increasing concentration of population; ● Decreasing price of vehicles because of

S ●
●
Increasing speed of lifestyle;
Increasing quantity of vehicles result in
T ●
●
automobile manufacturers;
Prevalent mobile connections;
GPS Improving the intelligence of driving
traffic jam; ● Digital payment.

● Low rate of taxi to people; ● Decreasing limitation regulation of Grab;

E ●
●
Increasing environmental conscious;
Inefficient and informal ojek system.
L ● Shifting legislative process by Transportation
Ministry in opposition to sharing economy
business model;
Porter’s 5 Forces
Five Forces Analysis

Threat of New Entry- Low Bargaining Power of Suppliers-

● Spend long time to build Low
● Tech & IT suppliers-They are the
brand equity; collaborative partners together
● High cost to create marketing with investors;
Competitive Rivalry- High ● Vehicles’ supplier-A huge
campaigns and raise brand
number of vehicles’ owner who
awareness. Many players in ride-hailing do not have the platform which is
service which provide same as Grab.
Threat of Substitute- similar service as Grab Bargaining power of buyers-
offers, such as Bus, MRT High
Moderate
and Taxi. ● In ride-hailing, the
● Low cost for customers to
passengers have much
shift from Grab to other choice, if they can not find
transport options. suitable grab, they can
choose taxi, MRT, bus and
motorbike.
SWOT Analysis
 Strength Weakness

● High market share ● Hard to control driver

● Strong in technology behaviors
● Moves fast in the South East ● No control over service
Asian Market ● Relying on the number of car
● Strong brand recognition for taxi services
● Huge financial invested ● Need for new merchants and
Partners

Opportunities Threats

● Demanding of the ● Regulated on LTO or

transportation is increasing government.
● New merchant/ partners ● Price competition
increasing ● Change in Economic
● Technology advancement conditions
● Grab dominates the SEA ● Decreased sales caused by
region. lockdown
● The rise of Gojek in SEA
 Top Competitors Market Country of

Valuation Operation

Grab B15 USD SEA

Grab Competitors Analysis Gojek B10 USD SEA

GrabCar Mai Linh M400 USD Vietnam

Mula Unknown Malaysia

Top Competitors Market Country of

Valuation Operation
Grab Food

Food Panda M800 USD SEA countries,

Japan, Bulgaria

Lalafood/Lalamove B1 USD SEA, China, HK

 Top Market Country of

Competitors Valuation Operation

Grab Express Lalamove B1 USD SEA, China, HK

Angkas Unknown Philippines

Gojek B10 USD SEA

The Space Matrix
● SPACE which stands for
Strategic Position and Action
Evaluation

● A key management device that

spotlights on technique detailing
particularly as identified with the
cut throat place of an
association.

● The space matrix can help

identify whether Grab should
pursue an aggressive,
conservative, defensive or a
competitive strategy.
● Line is in the 4th quadrant

● Company is in a
Competitive position

● Company should utilize a

Competitive strategy

● Grab should focus on

financial stability

● strengthening of cash flows

● maximization of resources,
quality service efficiency
and competitive advantage
strategies
Statement of the Problem
What competitive strategies can propel Grab to grow
beyond its core businesses and retain its top
position in the South East Asian transportation
industry in the next 3 years?
Generic Strategies
a. Overall Low-Cost Provider Strategy

Revamp efforts of Grab to manage cost savings opportunities in every part of its value chain activities that affects its product line, capacity

utilization, drivers’, customers’ and partners’ benefits, etc so that they can offer at a much lower price fare that is attractive to its customers but

still earn a profit.

a. Broad Differentiation Strategy

Offer more services like:

● Grab mart for more merchants on grocery, supermarket and pharmacy or online shopping. In this Covid pandemic, it is a good opportunity for

Grab to collaborate with vendors and merchants to offer anything to customers by its transportation.

● Food delivery, include Grab kitchen: assigning from partnership with restaurants they can work together buy choosing the best restaurant in

Grab and create kitchen

● Enhanced online Grab Pay: bring more accessible ways for customers to load the balance, giving more promo or discount when using the

Grabpay.
 Generic Strategies
c. Focused Low-Cost Strategy

Grab can focus on improving the services of its niche markets such as elderly, students, and people with disability

markets. Though they are offering 20% discount on their rides (GrabCar and GrabShare), they can improve their services by

offering to them all types of rides or product offerings (Grab Taxi, Grab Premium, GrabBike, etc) with lower cost or discounts

compared to other competitors.

d. Focused Differentiation Strategy

Grab can offer its improved carefully designed products and services to upscale markets (High end individuals or

businesses). For example, for its GrabBusiness, aside from seamless experience on its corporate food delivery or

documents delivery related to business, it can offer big vehicles let’s say, for a group of employees or they can start offering

GrabTrucks (All possible means for any business needs). For high end individuals, they can offer luxurious cars which high
 Generic Strategies

e. Best-Cost Provider Strategy

Grab can do both of Low cost and Differentiation strategies which goal is to satisfy its customers'

expectations on the services attributes and offering at a lower price. To further expand its market in

Southeast Asia, Grab can use this strategy to target the great mass who’s usually looking for a good

service at an economical price compared to other competitors offering the same ride hailing services.

They can revamp their existing services such as GrabShare to add more allowable persons to share to

lessen the fare or offer customized services to different markets to best cater their needs.
Alternative Courses of Action

Provide special services and additional ride features while

ACA 1
regulating fair fare rates

ACA 2 Merger with Gojek

ACA 3
Lower Fare Rates and offer more promos and discounts
 Recommendation

Based on the five generic competitive strategies provided in the case, using Broad
Differentiation Strategy can propel Grab into dominating all of Southeast Asian markets in the next
coming years. In order for Grab’s strategies to succeed in delivering good performance and
competitive advantage over its rivals, they should continuously use at its advantage and improve its
competitive abilities such as its large market share, advancements in technology, aggressive
performance in the SouthEast Asian Market, strong brand recall/ recognition and leverage
appropriate set of resources to incorporate unique attributes into its product offerings that the broad
market will find attractive and worth paying for. Services such as revamping and enhancing
GrabMart, GrabDelivery, GrabPay, etc by providing better technology and continuous product
innovation that best fits the target market.
 Recommendation
Launching strategic offensives can help improve Grab's company market position and
continuously retain its top spot in the industry for South East Asian countries. Strategies such as
expansion in their business offerings to long distance transportation or other areas that their
competitors are not yet penetrating and developing their own map for easier tracking of locations.
For their timing, offering differentiated services will give them the advantage to be the first mover,
hence, giving them the advantage of having strong brand recognition and loyalty from customers as
they are the first ones to offer such services. For scope, Grab can do a horizontal merger strategy
to create economies of scale, increase market power and market share, increase product
differentiation and help Grab expand their market. By vertical integration, Grab can use more
technology resources to improve efficiencies and control costs and processes.
Current Vision and Mission

Mission
When you join Grab, you join us on our journey to:
1. Creating the safest transportation platform.
2. Make transportation accessible to all.
3. Improve the lives of all of our partners.

Vision
“Drive Southeast Asia Forward”
Revised Vision and Mission

Mission

To provide seamless mobility, transportation,

cashless payments, financial services and lifestyle
to all our partners.

Vision

To be Southeast Asia’s everyday app

Implementation Plan

A. Crafting Strategies

● Grab can take advantage to

grow Grab express, Food

delivery and Grabmart.

● Cashless payments

● Faster Services

● Grab should build up a good

relationship with merchants

and customers.

● Better Customer Support

Execution plan

● Provide more services thru Grab app.

● Grab Mart is a solution for customers

who can go to the market. Partner up

with more firms

● Expand Grab kitchen by bringing up

the best seller to more locations.

● Improve the Grab Pay by partnering

with more payment centers, bank and

online payment that users are

encouraged to have cashless

payment.
Learning
Points
 It is important in crafting strategy to determine which of the five basic competitive strategies to employ. It
may be overall low cost, broad differentiation, focused low cost, focused differentiation or best cost provider.
Deciding which generic strategy to employ perhaps is the most important strategic commitment a company
makes as it tends to drive the rest of the strategic actions a company decides to undertake and it sets the whole
tone for the pursuit of a competitive advantage over rivals.

Grab is dominating the ride hailing market in SouthEast Asia and many people use it. If Grab
continues to expand and innovate their offerings and services using their competitive abilities and its key
resources in incorporating their chosen strategy/strategies, they will then continue to gain larger market share
and can win the competition in the industry while realizing their mission vision to improve the lives of all of
their stakeholders.