Analysis of Go-Jek Partnership with Carousell

This report analyzes the recent partnership between Go-Jek and Carousell, discussing the growth strategies, Porter's generic strategies, sources of cost advantage, and strategic positioning of the company. It also explores the implications and future prospects of the partnership.

Running head: ANALYSIS OF GO-JEK PARTNERSHIP WITH CAROUSELL
ANALYSIS OF GO-JEK PARTNERSHIP WITH CAROUSELL
Name of the Student
Name of the University
Author Note

1ANALYSIS OF GO-JEK PARTNERSHIP WITH CAROUSEL
Executive Summary
The report is focused towards analyzing the case study concerning the recent partnership of
Gojek Singapore, a ride hailing and logistics oriented service and Carousell, a customer-to-
customer web selling platform. The partnership allows user to avail extra discounts on Gojek
services if they use the Carousell application. The companies are introduced and their specific
details are provided. Moving forward the growth strategies, the generic Porter’s strategies,
sources of cost advantage and strategic positioning of the company are given. The implication
point towards better business prospects concerning the partnership. The partnership and the
factors that can govern its performance in the future have been essentially analyzed.

2ANALYSIS OF GO-JEK PARTNERSHIP WITH CAROUSEL
Table of Contents
Introduction..................................................................................................................................3
Stable Growth Strategy................................................................................................................3
Porter Generic Strategies.............................................................................................................4
Sources of Cost Advantage..........................................................................................................6
Strategic Positioning of Gojek.....................................................................................................7
Conclusion...................................................................................................................................8
Recommendation.........................................................................................................................8

3ANALYSIS OF GO-JEK PARTNERSHIP WITH CAROUSEL
Introduction
The focus of this report is the essential analysis of the partnership between GO-JEK and
Carousel and finding how the partnership could result in greater benefit for Gojek. The focus is
towards justification of the aspects that can contribute towards better benefits to be derived from
the partnership. The strategic factors that can tend to affect the organization are also discussed
through this study. Gojek is a ride sharing company established in Indonesia. The company
offers services that connects potential business customers with the motorbike taxis that help them
with the logistics requirements of their businesses. Gojek’s Singapore business division is the
focus of the report. Recently a partnership agreement was reached between Gojek and Carousell,
a company that is one of the most popular online market for consumer-to-consumer buying and
selling in the country. As per the partnership agreement users of the Carousell app can download
the Gojek app by clicking on a link and avail extra 3 Singapore Dollar ride voucher above the
already provided two 5 Singapore Dollar vouchers offered to the new customers of GOJEK
(Kim et al. 2019). The vouchers will be provided within 24 hours of downloading the app of
GOJEK. The potential of the partnership to develop stronger business relationships between the
two companies need to be discussed through proper analysis.
Stable Growth Strategy
GOJEK has taken a significant growth strategy and this can result in the greater future
benefits for the organization. However, the short term and long term goals that the organization
intends to realize through this need to be effectively set and justified subsequently (Anderson
2016). The stable growth strategy for the organization requires that GOJEK keeps on with the
partnership and focuses on further improving the product offerings. In order to achieve long
standing benefits from the partnership, Gojek would need to optimize its product positioning
from time to time. The global head of the organization is right in the strategic focus of reaching
more customers by partnering with companies and websites that are regularly visited by a large
number of consumers. A stable growth strategy will require Gojek to provide better offers from
time to time and additional benefits to the customers occasionally. As an initial offer the
partnership deal between the two companies can greatly influence the buyers. This will result in
more people incline to buy the services of Gojek.

4ANALYSIS OF GO-JEK PARTNERSHIP WITH CAROUSEL
A strategy is made of three important parts, stability, growth and retrenchment. For a
stable growth strategy there is a significant need to improve and grow the internal as well as the
external aspects of an organization (Ansoff et al. 2019). Stable growth strategy can depend either
or both the factors of diversification or minor functional strategies. These strategies can enable
Gojek to significantly achieve its major strategic stability goals. The growth strategy should
incorporate essential objectives that can be achieved on a systematic basis. The strategy should
focus more towards achieving targets connected with the partnership with Carousell. An
important element in this regards is the identification of special market base within the customers
of carousell. It can be essentially stated that Gojek is focuses towards catering to a large
consumer base considering the lower and middle income groups. In order to expand further
Gojek would require to make the most of its product offerings and promotion. The customer
market in Singapore is ideal for long standing stable growth strategies. The only major things
Gojek would need to focus on is how to improve its services for the customers and how to better
utilize the potential of Carousell’s customer reach to reach out to newer markets. The company
will require to emphasize on the type of customers that can provide greater stable growth to the
company (Bolisani and Bratianu 2018). The company has also recently updated the app to
facilitate easy access to all the people of the Singapore Island. The increasing market of the
organization needs be estimated and a successful strategy need to be formed that can enhance its
future productivity. For this the partnership with Carousell have to be optimally utilized. Another
important factor to consider is the constant technological up gradation of the application. It is
important to consider the effectiveness in operation that can be garnered through the partnership.
Porter Generic Strategies
Porter’s generic strategy is concerned with providing an essential analysis of the factors
that can help an organization gain effective competitive advantage. The competitive advantage is
analyzed in accordance with the chosen market scope. The focus of the Porter Generic strategy is
to find out whether a cost leadership strategy is more important or a market segmentation
strategy towards pursuing significant growth and development oriented goals. The strategies
Gojek can choose from are Cost leadership strategy, Product differentiation, Focus strategy low
cost and focus strategy product differentiation (Delmas and Pekovic 2015).

5ANALYSIS OF GO-JEK PARTNERSHIP WITH CAROUSEL
Lower cost Differentiation
Broad Target Cost Leadership
Uber has a cost leadership
strategy and one of the
significant competitors in this
segment.
Differentiation
Comfort Delgro is easy to use for the
customer. Their product is unique as
it offers customers to book large cabs
very easily.
Narrow Target Cost Focus
Mobi Taxi is a cost focused taxi
app. It lets the passenger book
cabs after being able to compare
the costs.
Differentiation Focus
Easy Taxi provides customers with
ability to view details of taxis that
are nearest to them and make a
decision in regards to what type of
taxi they would like to book.
Considering the competition levels across the market a cost differentiation strategy will be the
best suited for a company like Gojek. Hence, a cost advantage or a cost leadership strategy needs
to be effectively implemented. Considering that the business of Gojek essentially depends on
bike cabs that are much less expensive than the normal cab rides there is a scope of providing
costs that are lower than the competing firms. A cost leadership strategy is a strategy that focuses
on offering the lowest price to the target customers. The cost leadership structure helps the
company to effectively garner a large customer base. There is also significant scope for product
differentiation as the organization offers transport facilities that will cater more to the
requirements of the small and medium business people. Hence, these strategies can greatly
contribute towards the profitability growth of Gojek. The focus should be towards gaining
effective cost advantage from the partnership with Carousell app. Carousell being a consumer-to-
consumer app can benefit Gojek even more as both sets of consumers can become the potential
customers of the organization. The exchange of goods and services is an additional feature that
increases the product differentiation aspect of the organization. Hence, cost advantage and
product differentiation are both essential competitive advantages that can be gained by the

6ANALYSIS OF GO-JEK PARTNERSHIP WITH CAROUSEL
organization. A 13 dollar discount is a significant cost advantage that can be gained by the
organization. However, it should be remembered that this should be changed in accordance with
the strategy changes of the competitors and the changing customer needs. Carousell can also
benefit much from this partnership as a mutually reliable market base will be created.
Sources of Cost Advantage
The sources of cost advantage can primarily be the non-requirement of excessive
promotion. Hence, a large portion of the promotional costs could be saved by Gojek. However,
there are other sources that can greatly boost the revenue earning potential of the organization.
The most significant among these will be process and systems, materials and supplies and
people. Gojek already has a huge brand reputation in south East Asia. The process and systems
will be positively affected by the partnership. This is because the systems mainly have to depend
on mainly finding the customers that have transport requirements for their respective businesses.
The company would in other cases have to invest separately towards activities for gaining more
customers. In this case however, the processes are much more effective as the platform provided
by Carousell provides easy reach to the customers. The processes for directing the customers to
the app will be greatly managed. The customers are essentially people with genuine requirement
for logistics. Hence, the functional abilities of Gojek are greatly influenced by the market
demand that is being created by Carousell. Moreover, the materials and supplies would also be
positively affected by factors of cost effectiveness. The supplies in this case refers greatly to the
transport that is required for the organization. More employees would like to work for the
organization as a result of the partnership with Carousell. The next cost effective aspect that
needs to be highlighted is people. Normally the sales team looks after the customer service and
sales oriented issues of companies. In this case the customers would be readily available as
Carousell is a customer to customer app. In this case the role of the sales team would be greatly
diminished. This means that the company would be able to put their people to better use.
The factors of process, supplies and people would be greatly benefitted through the bond
that would be shared between Carousell and Gojek. The cost effectiveness would be the most in
regards to the systems or processes. The sales processes, the operational processes, the
distribution and the support processes will be greatly benefitted. It should be considered that the
organization is providing the company with ready customer base. This customer base has steady

7ANALYSIS OF GO-JEK PARTNERSHIP WITH CAROUSEL
demands with regards to their logistics need. Moving forward this would help the organization to
make a significant consumer base in Singapore. At the same time the costs saved can be utilized
towards other significant functions of the organization. If the partnership is long standing and
used properly, it can help to determine the profitability of Gojek in the future. The company will
also be getting a sustainable customer base. As the business of Carousell will keep on expanding
the business of Gojek will also expand at almost the same rate. The mutual relationship can help
the organizations to reap huge benefits in the present as well as the future market.
Strategic Positioning of Gojek
The strategic positioning of Gojek is important for realizing its full potential as a logistics
delivering company. The positioning can also help towards determining the future path for the
success of the Gojek Company. The strategic positioning of the company is that it offers services
at a ground level to small and medium scale businesses. The Gojek services are much suitable
for the small scale enterprises that have regular logistics needs. This means that the organization
is made strong through the implementation of better approaches to garner new customer bases.
The strategic positioning of the company is focused towards making most of the customers that
will be exposed to it through the Carousell app.
The existing products of the company are mobile bike logistics services. The company
currently provides logistics services over bikes to various businesses. The company has several
investors that provide essential corporate backing to the organization. Moreover, the company
has also partnered with Google Maps and Google play that provide essential support to its
functions. The company has also diversified into the online business segment, increasing the
scope of its operations. Moreover, it has subsidiary services like Go-Ride, Go-Car, and Go-Food
which are transportation and food delivery services respectively. Along with the same Gojek also
has other essential services (Go-jek.com 2019).
The strategic positioning of the organization should take into consideration that the
company is providing logistics services that very less companies are providing at the same scale.
Linking the business with Carousell means that the company can directly benefit from the people
that use the app. The strategic decision of the company should be to further consolidate the
partnership and develop a more mutually beneficial relationship. This requires the company to
make proper plans to use the customer base of Carousel. The discount provided works in favor of

8ANALYSIS OF GO-JEK PARTNERSHIP WITH CAROUSEL
Gojek. However, in order to further enhance the prospect of its customer reach it should provide
discount rates on a daily basis even to the regular customers. This service is currently very rare in
Singapore at the present times. It means that the organization has the opportunity to completely
bank on the existing situation (Chereau & Meschi 2018). Go-Jek further offers services like ride-
hailing and online payment. The diverse range of services that are being provided by Gojek are
not being provided by applications such as my taxi. It is important that the company keeps on
diversifying the services that it provides. The company needs to focus more towards providing
customer with more than one service from the same app. This will make sure that the
competitors of Gojek are not able to emulate the same at the same level leading to the further
consolidation of its market position.
Conclusion
In conclusion it can be said that the partnership has the potential of become one of the
most important decisions in the history of Gojek. Firstly, it is found that the partnership can
provide Gojek with increased opportunity to stabilize its business strategies. Moreover, it was
also found that if managed properly, the Gojek firm can establish an effective network that can
eventually work in its favor in dominating the market of Singapore. The generic strategies
pointed towards the competitive environment in the country. The significant competitors of
Gojek were found to be Uber, Delro and Mobi taxi. The strategy of the organization was found
to be effective towards maintaining and growing its functions in the future. In essence, the
partnership has very good prospects for the long term profitability of both Gojek and Carousell.
Recommendation
It is recommended that the companies engage in regular dialogues while establishing the
policies to approach customers and tackle significant challenges. The demand of the app can
experience significant rise. Hence, it becomes much important that ample number of bikes and
vehicles are available for the company to cater to the demand that will be created for its services.
The company will require a strong back up plan to address the unforeseen issues that may arise
with the services after the partnership.

9ANALYSIS OF GO-JEK PARTNERSHIP WITH CAROUSEL
References
Anderson, D.L., 2016. Organization development: The process of leading organizational
change. Sage Publications.
Ansoff, H.I., Kipley, D., Lewis, A.O., Helm-Stevens, R. and Ansoff, R., 2019. Implanting
strategic management. Springer.
Bell, G.G., Dyck, B. and Neubert, M.J., 2017. Ethical Leadership, Virtue Theory, And Generic
Strategies. Radical Thoughts on Ethical Leadership, 113.
Bertozzi, F., Ali, C.M. and Gul, F.A., 2017. Porter’s Five Generic Strategies; A Case Study from
the Hospitality Industry. International Journal For Research In Mechanical & Civil Engineering
(ISSN: 2208-2727), 3(2), pp.09-23.
Bolisani, E. and Bratianu, C., 2018. Generic Knowledge Strategies. In Emergent Knowledge
Strategies (pp. 147-174). Springer, Cham.
Chereau, P., & Meschi, P. X. (2018). Defining Strategic Positioning. In Strategic Consulting (pp.
39-79). Palgrave Macmillan, Cham.
Delmas, M.A. and Pekovic, S., 2015. Resource efficiency strategies and market conditions. Long
Range Planning, 48(2), pp.80-94.
Go-jek.com. (2019). GOJEK Singapore: Ride-Hailing Transport Services. [online] Available at:
https://www.go-jek.com/sg/
Kaya, N., 2015. Corporate entrepreneurship, generic competitive strategies, and firm
performance in small and medium-sized enterprises. Procedia-Social and Behavioral
Sciences, 207, pp.662-668.
Kim, I., Kim, I., Kim, I., Writer, S., Kim, I., Kim, I., Kim, I., Kim, I. and Kim, I. (2019).
Carousell gives new GOJEK riders up to $13 in vouchers - Alvinology. [online] Alvinology.
Available at: https://alvinology.com/2019/01/25/carousell-gives-new-gojek-riders-up-to-13-in-
vouchers/

10ANALYSIS OF GO-JEK PARTNERSHIP WITH CAROUSEL
Lau, K.W., Lee, P.Y. and Chung, Y.Y., 2018. A collective organizational learning model for
organizational development. Leadership & Organization Development Journal.
Murray, A., 2016. Introduction to special section on Organizational Challenges in the
Knowledge Society. Romanian Journal of Communication and Public Relations, 16(2), pp.9-11.
Panwar, R., Nybakk, E., Hansen, E. and Pinkse, J., 2016. The effect of small firms' competitive
strategies on their community and environmental engagement. Journal of Cleaner
Production, 129, pp.578-585.
Salavou, H.E., 2015. Competitive strategies and their shift to the future. European Business
Review, 27(1), pp.80-99.
Um, K.H. and Kim, S.M., 2018. The effects of supply chain collaboration on performance and
transaction cost advantage: The moderation and nonlinear effects of governance
mechanisms. International Journal of Production Economics.