Expanding Grab Business in Brunei Assignment
Seeking Board's approval for bringing Grab business into Brunei, including background, rationale, competitors analysis, and convincing the board of directors.
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Added on 2020-10-05
Expanding Grab Business in Brunei Assignment
Seeking Board's approval for bringing Grab business into Brunei, including background, rationale, competitors analysis, and convincing the board of directors.
Added on 2020-10-05
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Expanding Grab Business inBrunei
TABLE OF CONTENTSEXECUTIVE SUMMARY.............................................................................................................11. BACKGROUND.........................................................................................................................12. RATIONALE...............................................................................................................................12.1 Product detail....................................................................................................................12.2 Competitors......................................................................................................................23. SUPPORTING INFORMATION................................................................................................23.1 Information about Home country.....................................................................................23.2 Information about Host country.......................................................................................33.3 Economic Integration between both nations....................................................................53.4 Theoretical overview........................................................................................................54. IMPLEMENTATION..................................................................................................................54.1 Proposed Strategy.............................................................................................................54.2 Value Chain......................................................................................................................64.3 IT related aspects..............................................................................................................74.4 Finance.............................................................................................................................75. RISK ANALYSIS........................................................................................................................76. CSR..............................................................................................................................................87. RECOMMENDATION...............................................................................................................88. REFERENCES............................................................................................................................9
EXECUTIVE SUMMARYThe report is provided to Board on how Grab business is expanding its business to theSouth-East Asia country Brunei. Effective and better services will be provided to Bangar city inthe nation to all of local passengers who face difficulties in transportation. E-hailing services willbe given and great opportunities for growth will be attained. 1. BACKGROUNDThe proposed board paper is relation to Grab Company which is expanding to Brunei forearning profits. Organisation operated in Singapore earlier and now operates in Malaysia hasgood customer base as it provides online taxi booking services to customers. It operated inMalaysia till 2012 and idea was created by Anthony Ton. Grab Company has a remarkablemarket share in the Malaysian market. It is evident from the fact that more than 141,000 driverswere part of organisation in financial year 2015 collectively in South-East Asian nations. Bruneiis the selected country to expand business to garner more quantum of profits. It is the sovereignstate located on the Island of Borneo in South-East Asia which will be fruitful for theorganisation as it has good brand image and new market will be met demand of people of Bruneiand thus, higher profits would be achieved and expansion will be successful (Schaper, Volery,Weber and Gibson, 2014). UBER which is similar ride-sharing firm which is effectivelyoperating in European nations with nearly 28 member states. It provides vehicle for hiringpurpose and also takes customers towards destination through booking on mobile app.2. RATIONALE2.1 Product detailGrab business provides transportation services to customers at fair charges so as toincrease satisfaction level up to a high extent. It has good market share along with higher amountof safety being imparted to females so that they may reach to their destinations quite safely.Furthermore, cameras are being installed which keeps an eye on drivers by which no incidentmay happen and if something happens, it is effectively recorded in the cameras and thus, highersafety is provided to all the people regardless of their age, gender and proper security is providedwhich has given good quantum of market share in just 6 years of operations in Malaysianmarket. Firm has implemented an software to effectively track driver's habits and has beenfruitful for it as nearly 35 % of improvement can be seen. Rewards and free rides related services1
are imparted to passengers leading to higher level of satisfaction. Brunei will be fruitful for Grabbusiness as there is shortage of transportation facilities and furthermore, unemployment rate ismaximised to 7.10 % in financial year 2017 which was 6.90 % in 2016. Hence, employmentopportunities will be generated in the nation. Hence, dual benefits will be attained as on onehand, expansion may be made and society may be served leading to decrease in unemploymentrate in Brunei. The market of Brunei is picked as it had suffered a lot because of earlier reformsand network was not widened particularly road network. Grab business has market potential toachieve maximum customers as affordable prices would be offered by penetrating market. Thetransport system of Brunei has been evolved rapidly as Brunei Darussalam overhaul is underprocess and government plans Bus Rapid Transit (BRT) for encouraging use of transport. Grabbusiness can add value by reducing waiting time period instantly. It could be possible whencustomer books the ride, driver may receive alert in short time and waiting time can beminimised. Business could provide delivery of heavy or capital goods of client on consignmentbasis from one destination to other leading to diversified portfolio.2.2 CompetitorsThe rivals are required to be scrutinise so that business may be able to attain good marketshare and outreach competitors quite effectually (Agus and Shukri Hajinoor, 2012). One of therival is Dart Car services which is operating in Brunei. Although, customers are not attracted tofirm as prices charged are too expensive. This is an opportunity for Grab business to attainmarket of the host country by providing value added services to people and that too at affordableprices so as to gain customer satisfaction. Moreover, there are plenty of services such as GrabBike, Grab Car, Grab Food and many more which can fulfil need of citizens of Bangar. DartCompany also provides taxi services but are costly and Grab business can attain competencyover it. 2
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