AS2 Strategy Enterprise and Innovation

This report discusses the innovative practices of Grab, a mobile technology and transportation company, and the different approaches used by Grab to shape its entrepreneurial vision and business model. It covers tools of innovation such as mind map along with the key drivers of innovation. Further, it includes the different approaches undertaken by the organization to shape its entrepreneurial vision and business model. The report also discusses the blue ocean model used by Grab to assess the competitive environment of business.

AS2 Strategy
Enterprise and
Innovation

Table of Contents
Introduction.................................................................................................................................................3
Main Body...................................................................................................................................................3
Using appropriate frameworks and any appropriate tools such as mind maps, identify and evaluate the
key drivers of innovation contributing to the success of Grab.................................................................3
Analyze strategic frameworks and different approaches used by Grab to shape its entrepreneurial vision
and business model..................................................................................................................................5
Blue Ocean strategy.................................................................................................................................7
Conclusion.................................................................................................................................................10
References.................................................................................................................................................11

Introduction
Innovation is a process of introducing new products or services in market. It is about
practical implementation of the ideas which resulted production of a new good or improvement
in the existing product or service for future enhancement. In other words, innovation refers to
introduce something new that is unique and different. For this purpose, strategies are formulated
by the company so that they can implement innovation in an efficient manner. The main aim of
the present study is to assess the innovative practices of the company (Yang, Qin and Moulaert,
2021). The present study is based on Grab that is a well-known mobile technology and
transportation company which offers range of everyday services like food delivery, grocery
delivery, mobile payment, financial services and more. It was founded in the year of 2021 in
Malaysia. Currently, it has presence in nearly 8 countries and 339 cities across the globe. The
report will cover tools of innovation such as mind map along with the key drivers of innovation.
Further, it will include the different approaches undertaken by the organization to shape its
entrepreneurial vision and business model. Further, blue ocean model will also cover in the study
to assess the competitive environment of business. Additionally, the report is based on strategy,
innovation and evaluation for the success and growth of the company in future period of time.
Main Body
Using appropriate frameworks and any appropriate tools such as mind maps, identify and
evaluate the key drivers of innovation contributing to the success of Grab.
Innovation is imperative in order to introduce unique and different products in market
place. Mind mapping is a visual thinking tool which is used to capture the information and ideas.
It allows an individual to get several interconnected thoughts and then capture them in one place.
Additionally, mind mapping reflects the natural thinking processes so that one can gather
necessary thoughts & information regarding a particular topic. In this, the person gets an idea
and then the mind starts to spark a lot of thoughts based in the particular idea (Jin and et. al.,
2018). Here, the process is captured so that one can build the creative ideas by ensuring that
nothing gets forgotten. Mind mapping is a great tool to develop innovative and creative solution
of the problems. When resolving a particular issue, it is easy to get stress but mind mapping

helps in generating refreshing alternative to generate ideas. In addition, it allows to see the big
picture. Mind maps helps a person in developing connections from each individual thought. This
will help in broadening the thinking and explore the possibilities instead of focusing on the finer
details. In context of Grab, it is a well-known company which offers mobile technology and
transportation services like food delivery, ride-hailing, grocery delivery and more. The company
offers quick services via app in order to provide the best possible experience to the customers.
Here, super app is a unique feature of the company which allows the entity to offer on-demand
everyday services to the customers in an efficient manner. In this context, key-drivers of
innovation are mentioned below:
Social Drivers: These are the most important drivers of innovation wherein a person put
efforts to upgrade the entire society. Here, the main aim is to uplift the society, improve the
standard of living of people and more. In this, individual considers what better they can do to
meet with the desires, aspirations and ideas (Metechko and Sorokin, 2018). In case of Grab, they
develop a ride hailing app to ensure convenience of the customers. In addition, they are also
offering food delivery services and more through the online platform. It will help in improving
the daily life of the individuals in an efficient manner.
Technology drivers: In current time, new and advance technology is introduced. Here,
the existing technology get obsolete hence it has become important to introduce new techniques
and methods. Technology is a powerful enabler of innovation. In addition to this, technology
facilitate innovation and allows a person to introduce new and creative ways to perform a
specific task (Tavares, 2021). In context of Grab, the also utilize technology to offer the best
possible services to the customers. For this purpose, they are offering online app services to
ensure the safety of both customers as well as drivers. In addition to this, super app is also enable
to fulfill the on-demand every day services of the million of the customers.
The above-mentioned drivers of innovation are helpful in facilitating innovation and
creativity in market. Grab is using these drivers in order to introduce different & unique services
in market place. These innovation drivers will also contribute in the future success of the entity.

Analyze strategic frameworks and different approaches used by Grab to shape its entrepreneurial
vision and business model
Grab is a leading technology company which was founded in Malaysia but expand the
business in several countries in short time of period. It is a ride-hailing app which has been
designed to provide a sate ride to customers as well as drivers. In 2019, the organization
launched unique “Grab for Good” program to put a major social impact on the individuals. The
organization was started with a vision to improve the quality of life of the people by providing
high quality everyday services. In addition to this, they are working with an aim to create a major
social impact by providing the best possible services to the customers.
Grab is gaining popularity over the period of time but it is working in a highly
competitive environment. Hence, it is imperative for the entity to prepare suitable business as
well as corporate level strategies so that they can sustain in the competitive business
environment for longer period of time.
Business-Level Competitive Strategy: Business level strategies refer to the combined
set of actions & moves which are taken with an aim to provide value to the end users and gain a
competitive advantage. It is possible by using the core competencies of a business entity in terms
of individual products or services. In addition, business-level strategies are majorly concern with
those firms which are involved in multiple businesses and each business is considered as a SBU.
These strategies help in defining how the organization will compete in the market (Xie, 2020).
Grab is a well-known technology company which is not only offering ride-hailing services but
also provides online food services to the customers. In context of the company, Porter’s generic
strategic framework is given below:
The cost leadership strategy: Porter’s generic strategy is way to enhance the sales and
keep away the competitors. In cost leadership, the company keeps control over its cost so that
they can enhance the existing profit margin. Here, the organization can increase the overall
market share by charging lower price from the customers. In other words, it allows a firm to
become leader in the industry in terms of cost (Miles and Van Clieaf, 2017). In this context, Grab
is offering the services at reasonable price on order to make it affordable for all. The main aim of
the company is to create social impact for which they keep the price at minimum level to make
the product affordable.

The Differentiation strategy: It focuses on making the product different from
competitors. It generally includes the feature, durability, functionality, brand image and more. To
differentiate the product or services, it is imperative to do research, adopt effective sales &
marketing practices and so on (Jinsong and Meng, 2021). In case of Grab, they have
differentiated their ride-hailing app by including the distinct safety feature. In addition, super app
is the other source of competitive advantage for the company. Through the app, Grab is a able to
provide every on-demand services to the millions of customers each and every day.
The Focus Strategy: It concentrates on a narrow segment and attempts to attain either
differentiation or cost advantage. Here, the organization can focus on a particular segment of
customers. In this, the organization first selects a group of segments in a particular industry an
then narrow down the efforts to serve the selected segment appropriately. In context of Grab, it
focuses on differentiation wherein the company is targeting to the youth segment who are
friendly with the technology. For this purpose, the entity has prepared appropriate strategies so
that they can target the particular segment of customers in order to earn high amount of profit in
future period of time.
Corporate level competitive strategies: These strategies address the overall strategic scope of a
firm. It is a big picture view which helps in determining in which product or service markets to
compete. In addition, it also helps in deciding the geographical area to operate the business. In
other words, corporate strategy is related to strategic decision about defining the overall scope
and direction of a corporation and the way in which different business units work together to
attain the pre-defined business goals in an efficient manner (Dodgson, 2018). In context of Grab,
Ansoff matrix is used to assess the corporate level business strategies of the organization. The
elements of Ansoff model are mentioned below:
Market Penetration: This is one of the safest options to grow the business. In this, the
main focus is on enhancing the sales in the existing market by using the existing products. Here,
the product and market both are existing hence the entity is required to adopt suitable strategies
to sustain in the market. For this purpose, they can adopt various offers like discounts, loyalty
programs, vouches and more. Through market penetration, it is possible to enhance the sales &
revenue with minimum efforts (Kalaman, Volodina and Mandrikin, 2018).

Product development: It contains some amount of risk as the company introduces new
product in the existing market. It is quite difficult to get the acceptance from the existing
customers regarding the new product or service. Introducing new product might hamper the
existing image of the company in the market. While launching a new product, it is imperative to
conduct extensive research in order to know the need and requirements of buyers. It improves the
probability of success in the existing market.
Market Development: In this, organization put the existing product or service in an
entirely new market. It can be done by identifying new use of product and adding any additional
feature in it. Sufficient amount of market research is important before entering into a new
market. It helps the business entity to know the trends prevailing in the market which make them
enable to survive in the new market for longer duration. To get success, company can also use
different sales channels like online and offline mediums. Additionally, marketing mix will also
prove helpful in positioning the products appropriately.
Diversification: This strategy comprises high level of risk as the entity is introducing the
entirely new product in a new market. Here, it is difficult to understand the needs of new
segment. However, the growth potential is also high in case of diversification. In this strategy,
the company is required to invest huge amount of money in terms of research, new product
development and more. Effective implementation of diversification also helps in earning
significant amount of profit margin (Chen and Song, 2019).
From the above-mentioned strategies, Grab is required has adopted market development
strategy. Here, they are expanding the business in different countries to earn high amount of
revenue and profit. Initially, the company started from Malaysia but now it has presence in
nearly 8 countries globally. The market development strategy will help the organization in
targeting new set of customers by existing products. Further, it will also make the company
enable to accelerate in the competitive environment.
Blue Ocean strategy
Blue ocean strategy is a strategy to create a new market place and create new demand. It
is related to capture huge market share so that the competition become irrelevant. According to
this strategy structure of industry is not rigid and can be easily change by the beliefs and actions

of the industry players. It refers to the market for a particular product where no or less
competition. In addition, there is potential of huge profit as there is less or irrelevant competition.
The main aim of this strategy is to improve the market image of a company in order to enhance
the overall profit margin in an efficient manner (Shuai and Haijun, 2021). In this context, Grab is
using blue ocean strategy by offering easy tranporatation services to the customers. They are
offering services through ride-hailing app and ensure comfort, safety of the customers. Grab is a
ride-hailing app which was started in 2012. It has an app by which drivers and potential riders
can easily connect with each-other. The company is growing exponentially and now has been
expanded business in 8 countries globally. Here, the main focus is on safety of both drivers as
well as customers. Apart from the ride hailing app, they are also providing other services such as
mobile payments, shopping and food delivery and more. As a result the demand of Grab services
is also increasing. Apart from this, the brand is contributing in the growth of the economy of
southeast Asia. More than 9 million entrepreneurs have earned some amount of income by Grab
platform as delivery partner, drivers-partners and more. The entity is offering everyday on-
demand service to millions of the customers which will help them in setting the brand apart from
the competitors. In this context, the tools of blue ocean strategy are mentioned below:
Value innovation: It is considered as one the major tool of blue ocean strategy wherein
the company pursuit differentiation and low-cost in order to generate value for both company as
well as customers. Here, the company introduces new product or upgrade the existing technology
to attain the product differentiation and minimize the cost. The main aim of value innovation is
to create new demand and change the market so that the company can sustain in the competition
for longer period of time. It is about constantly pursuing differentiation and low cost and create
value for the buyers and the company as well (Vieira and Ferreira, 2018). In case of Grab, they
have introduced differentiation by introducing ride-hailing and super app to fulfill the demand of
millions of the customers every day. This not only increases the number of the customers but
also allow the company to earn high amount of profit. In addition, they also ensure to offer the
services to the customers at minimum possible price. By this way, the entity is creating value
innovation for the customers as well as the company.

Visualizing Strategy: It is a step by step process which includes the visual exploration in
order to unlock the creativity of people to push the strategies of the company towards a blue
ocean. In this context, the four steps of visualizing strategy are mentioned below:
 Visual awakening: It is the first step wherein one needs to understand the current position
of the company. Here, the Grab is offering ride-hailing, food delivery services to the
millions of customers. Unlike the competitors, they also focus on safety and security of
drivers and customers (Priilaid, Ballantyne and Packer, 2020).
 Visual Exploration: At this stage, it is required to get the opinion of customers, suppliers
and other relevant stakeholders in order to know what they think about the organization.
In case of Grab the customers are highly satisfied by the services that are being offered
by them.
 Visual Strategy: Here, the Grab needs to work on brainstorming and using the strategy
canvas to understand the competitive framework of the company.
 Visual Communication: This is the last stage wherein a map needs to drawn to show the
staff where the company will go in future. It will help the employees in putting necessary
efforts for the future success of the entity.
Strategy Canvas: The strategy canvas is well-known diagnostic tool and an action
framework for creating an effective blue ocean strategy. Basically, it shows all the factors
industry competes and invests in. In addition, it also includes what buyers are receiving, the
strategic profile of the major players and more (Ortiz and et. al., 2020).

The above canvas demonstrates that Grab, they are working in mobile technology and
transportation industry wherein the major competition in industry is regarding safety, payment,
security, deliver time and more.
Conclusion
Out of the above-mentioned information, it is analyzed that innovation is process of
converting an idea into reality in order to produce unique, different products. The main aim of
innovation is to enhance the standard of living of people by providing them efficient products.
Innovation is based on idea that is generated by a person so that the business entity can grow and
succeed in future period of time. The above-study is based on Grab that is a renowned mobile
technology and transportation company based on Malaysia. The company is growing rapidly in
terms of market share and presence. As a result, they have presence in nearly 8 countries and
more than 300 cities globally. It is analyzed that the company is making efficient use technology
thus they are able to offer every day on-demand services to the customers in an efficient manner.
They have the ride-hailing app through which they ensure to offer safe and secure ride to
millions of people each and every day. Apart from this, the entity is working on business level
and corporate level by using effective differentiation and cost leadership strategies which will
help in getting competitive advantage in an efficient manner. Furthermore, blue ocean strategy is
also implemented by the company in order to make the competition irrevalant and ensure long-
term sustainability. For this purpose, the entity is adopting tools such as value innovation,
strategy canvas and more.

References
Books and journals
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