Strategy, Enterprise and Innovation: A Case Study of Grab's Success with Blue Ocean Strategy

This case study explores Grab's success with the Blue Ocean strategy, identifying key drivers of innovation contributing to its success, different approaches undertaken by Grab to help shape its entrepreneurial vision and business model, and a comparison of Grab and its competitors. The study concludes that Grab's success is a testament to the power of the Blue Ocean strategy and its ability to drive growth and profitability in today's competitive business environment.

Strategy, Enterprise
and Innovation
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Contents
Contents...........................................................................................................................................2
INTRODUCTON.............................................................................................................................3
Key drivers of innovation contributing to the success of Grab.......................................................3
Different approaches undertaken by Grab to help shape its entrepreneurial vision and business
model................................................................................................................................................5
Grab’s success can be attributed to the successful application of the “Blue Ocean strategy.”........8
Compare Grab and its competitors................................................................................................10
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13
Books and journals....................................................................................................................13
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INTRODUCTON
Business creativity is the implementation through which a corporation offers new ideas,
procedures, methods, applications, or items. Technological project helps a firm to add value and
increase earnings; yet, if an inventor does not innovate effectively, their business will languish.
Keeping up with the competition necessitates creativity. The aim of the strategy is to come up
with new ideas and techniques that will drive demand and expansion output while using the same
amount of resources. According to the offered case study, Grab is a major mobile software and
mobility company that provides a range including on everyday services. The firm was founded in
Malaysia in 2012 by Anthony Tan and Tan Hooi Ling, both Harvard Business School graduates.
The company started as a cab app in Malaysia with the objective of enhancing the security of
taxi riders and drivers, but it has now spread to 339 cities across eight Southeast Asian countries.
This file includes frameworks such as SWOT analysis for identifying major drivers of innovation
and Porter's strategy for identifying services business and type of economic (Adamenko and
Kornukh, 2021). This will also include a comparison of Grab and its rivals using blue ocean
approach and strategy canvas.
Key drivers of innovation contributing to the success of Grab
Everything benefits from inventions in a number of ways. They make their jobs easier, connect
individuals, broaden public understanding of the globe, and even save lives. Innovations help a
company or corporation standing out from the crowd; they makes company unique and
distinctive, giving them a strategic advantage when clients switch to a new item. Companies,
especially those in developing countries, gain from invention since this helps them to remain at
the forefront of ever-changing challenges. Through invention, business may be able to get more
customers and an increased sale. In addition, irrespective of the quality or type of their business,
invention makes it easier to grow. Customers may have a small business, but there are far more
potential for development with creativity (Koziol and Koziol, 2019). All creativity is about
though people being creative and distinctive in their job. Each organisation, person, and thing
wants to be looked of as innovative, but the notion of development is what separates innovation
and progress from the others. Innovation is only a storey that is given for the sake of telling it.
Their growth is aided by invention, which also makes a significant contribution to economic
opportunity. Businesses, developing world, gain from invention because that helps them to stay
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on top of ever-changing challenges. Through innovation, you may be able to get more customers
and a greater market share. In addition, regardless of the size or type of their business, innovation
makes it easier to expand. Individuals may have a small business, and there are plenty more
potential for development with creativity. What creativity is about anyway people being creative
and distinctive in their job (Xu, 2018). Every organisation, person, and thing wants to be thought
of as innovative, but the notion of improvement is what separates true innovation from the rest.
Innovation is only a storey that is told for the sake of telling it. Their development is aided by
innovation, which also contributes greatly to economic advancement. Even after the patent
period has ended, initial investment in research may prove to be extremely beneficial and
provide considerable rewards. Though getting into the marketplace may seem to be a gigantic
task for many start-ups, the foundation of the beginning mindset is to develop and explore ideas
in order to further improve the customer service. Through invention, efficiency, total
productivity, and revenue are all increased.
The 4 P's of Innovation is a paradigm for investigating the innovation field, deciding its
direction, and assigning resources to it. All businesses must be imaginative to thrive, and those
that attain lengthy competition must be inventive in all 4 categories.
Product Innovation:
Changes to a startup's or company's services and offers are referred to as new products. New
product development can take the form of a change in the design of an existing model or a full
overhaul of the good or service. It is important because it contributes to the establishment of new
spaces in an otherwise saturated market. In the case of Grab, consumers must identify these gaps
and devise new strategies to target their clients in order to provide them with a unique
experience. Product innovation often does not involve the creation of a completely new product
to meet a completely new demand in the Grab.
Process Innovation:
Factors including such economic liberalization and globalization, market internationalization,
greater consumer need, and technology improvements have transformed the innovation
environment (Tsekhovoy and Mukhtar, 2020). As a result, firms' production processes have
shifted. Process innovation refers to improvements that help firms able to work successfully
profitability by coordinating their procedures in a client way. The four elements that make up a
process are process outputs, working process, operational processes, and technology. In reaction
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to market and technical changes, the production process is adjusted. Grab, as a process-oriented
company, has the advantage of being adaptable to change in the corporate environment more
quickly. Grab's decision to go digital with their operations, for example, represents a significant
shift in the post-pandemic status quo. The pandemic has expedited digitalization, that had
already occurred in earlier periods.
Paradigm Innovation:
Businesses are continually changing paradigms, faster than new income sectors are discovered.
Paradigm When the existing paradigm of a firm changes, it produces a shift in the actual
psychological framework, which is known as innovation. With the evolution of smartphone
adoption, the bulk of citizens began to use their devices to absorb information (Bespalova and
Kadyrova, 2018). In the case of Grab, it has altered to conform towards the newly developed
market, while brands have faced a shift in the digital consuming model. It's also known as
bridging the gap in the context of the IT development cycle.
Position Innovation
Businesses usually target one audience at start, then expand to a broader audience or target a new
demographic. Positioning innovation includes a lot of repositioning. It comprises bringing a good
or service to a growing market or focusing on a different market. In terms of Grab, the company
has rebranded itself by introducing a number of improvements, such as Grab for Food. Position-
based innovations may include changes in how a process or product is perceived or used.
Different approaches undertaken by Grab to help shape its entrepreneurial
vision and business model.
An entrepreneurial vision examines whatever they want and their firm to become, how it will
look, what will propel it, and what social traditions should be associated with it. Every
entrepreneur has his or her own vision again for organization's business. The vision of a business
gives it guidance and purpose (Ahman and Mulyadi, 2019). Their vision will guide their
judgments and assist them in determining short and long-term goals.
SWOT Analysis:
Businesses may use a SWOT analysis to get insight into their present position and better
comprehend organisational effectiveness. It enables a business to identify its strengths, which
may help it better penetrate the market and achieve its objectives. It allows you to take advantage
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of their strengths, improve your shortcomings, and lower your risks. Perform a SWOT Analysis
to analyse the organization's position before settling on a new strategy.
Strength:
These are features that distinguish a corporation from its rivals. A SWOT analysis may reveal a
company's unique value proposition, which acts as the basis for internal strengths and keeps it
ahead of its industry rivals. Grab, on the other hand, provides a dependable and secure mode of
transportation (Nasution and Sarkum, 2018). Only qualified drivers and autos are permitted to
service for Grab. It is the most popular online meal delivery service, has a digital wallet expense
class, and a 400-city network with millions of users.
Weakness:
Identifying these can help you identify areas where you can improve. As a consequence,
businesses may design strategies to repair and control their weak spots, allowing them to prosper.
A company's weaknesses keep it from realising its greatest potential. They are areas in which the
business must develop in order to remain competitive. In the case of Grab, the incentives
provided to drivers are low. There are system glitches from time to time. The firm's biggest fault
is that booking is hard during busy hours.
Opportunity:
Opportunities are external factors that may give a corporation with a strategic edge. These are
external aspects that are available to the company and may be exploited for its benefit.
Businesses must have a good eye for recognising and analysing existing prospects in order to
actively grasp market opportunities. In terms of Grab, the use of electric/rechargeable vehicles to
reduce pollution emissions. Because of difficulties with motorcycle calling companies such as
legal and safety, customers are migrating to or keeping with Grab. External factors including bad
public transportation, a lack of car parks, and increased customer income may help Grab increase
its earnings (Yang, Lang and Song, 2021). The rising demand for contactless payments and
online delivery will boost income for the chosen organisation that is GrabFood and GrabPay.
Threats:
Everything that potentially have a negative influence on their company externally, such as to
provide concerns, market shifts, or a recruiting shortage, is considered a threat. Identifying
decisions and ensuring steps to mitigate them is crucial before they become victims and halt
corporate growth. When it comes to Grab, With the launch of several ride-hailing applications,
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Issues with local authorities might result in fines and the implementation of new regulatory
requirements that could have a negative impact on the company. Drivers are affected by low
profit margins, which may dissuade young drivers from joining Grab.
Porter’s strategy:
Porter's competitive strategies are essential for organisations of all sizes to succeed. By basing
the key components of their business plan on one of Porter's techniques, organisations may take
the first steps toward creating a stronger market position. The frameworks developed by Michael
Porter illustrate how organisations may surpass their competition. Strategy defines the company's
special approach to compete, as well as the economic edge on which it will be based.
Differentiating one's activities from rivals', or carrying out similar tasks in different ways. Per the
Porter, a company can only outperform competition if it can develop a long-term competitive
edge (Merzlikina, Oleinik and Mogharbel, 2021). It must either increase consumer value or
produce the same superior value to customers, or both.
Cost Leadership:
A cost-cutting strategy's purpose is to gain an advantage through lowering expenses. Grab The
key general strategy in numerous consumer sectors is cost leadership, according to Exploring
New Horizons for Growth in the Southeast Asian Sharing Economy. Grab Finding New
Boundaries for Expansion in the Southeast Asian Collaborative Consumption may employ this
strategy to expand market share by concentrating on the upper income, which makes up the
majority of the customer marketing mix strategy in most countries. Middle-class clients value
pricing, and target costing is the best way to suit their needs.
Differentiation:
Differentiation is another commonly used general strategy for acquiring a competitive advantage.
Grab Finding New Horizons for Growth in Southeast Asian Collaborative Consumption uses
differentiation in combination with a cost leadership technique to achieve development goals
(Jia, Nam and Chun, 2021). The strategy aim of executing this technique, Finding New Horizons
for Development in the Southeast Asian Sharing Economy, is to stand out by incorporating
innovation and responding to customers' growing health concerns. To make its product offers
stand out and be different from the competition, Grab Exploring New Frontiers for Growth in the
Southeast Asian Sharing Economy adopts a differentiation generic method. Because it is a well-
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established brand with a strong following, the company uses uniqueness as a strategy to
counteract the competition from competing companies.
Focus Strategy:
The third general competitive strategy encourages firms to concentrate their resources on
expanding narrowly specified regions. When businesses deploy centralised authority, they focus
on certain market segments and employ specialised marketing to obtain a competitive advantage.
Grab By focusing on product attributes, Developing Emerging Horizons for Growth in the
Southeast Asian Sharing Economy revises its marketing strategy and introduces continual
changes in product branding to match clients' regarding the portrayal and optimise value for
money.
Grab’s success can be attributed to the successful application of the “Blue
Ocean strategy.”
The pursuit of uniqueness and cheap prices at the very same period in order to create new market
space and desire is known as a blue ocean approach. It's all about establishing exclusive market
space and obliterating competition. It is based on the idea that market constraints and market
structures are not written in stone and may be changed by the opinions and actions of industry
players (Audretsch and Belitski, 2020). To symbolise all of the businesses that do not yet exist -
the undeveloped and uncompetitive market space. Demand is created rather than fought over in
the seas. There is lots of opportunity for profitable and speedy growth. Because the rules of the
game have yet to be set in blue seas, competition is pointless.
. The term "blue ocean" refers to the immense, untapped potential of an unexplored market. A
blue ocean is vast, deep, and robust in terms of profitable growth.
Despite having a lengthy history in the taxi industry, Grab has overtaken all others by
revolutionising the industry. Rather of competing in the existing industry or aiming to steal
customers from taxis, Grab established an uncontested market that left taxis obsolete. By turning
non-customers into paying customers, Grab created a blue ocean. In blue seas, demand is created
rather than battled over.
As a result, the company is able to expand profitably and quickly. Unlike local taxis, which can
be unreliable in some areas, Grab allows you to book a journey using your smartphone, waiting
for it, and then pay using the app or cash (Chege, Wang and Suntu, 2020). This feature makes it
easy for visitors to travel as they didn't have to think about getting an unlicensed taxi. Anthony
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Tan, Grab's CEO and co-founder, said the two companies' experience in meeting Singaporeans'
everyday requirements, as well as their knowledge ideas and good technology skills, provide
them with the effort to introduce an examine the financial that would allow even more customers
to take control of their finances.
The Blue ocean approach employs the Strategy Canvas technique to determine the success
elements for the Grab.
The strategy canvas serves several purposes: it displays the current state of play in the identified
market sector, letting users to explore the causes on which Grab concentrates and invests, as well
as what customers receive and the tactical features of the important players.
The business model canvas is a graphic representation of how a company will or has
implemented a blue ocean strategy. It's used to analyse how Grab's present competitors compete
in a certain market area, what factors they engage on, and how their company and the
competitors rank on each crucial factor. The horizontal axis on the strategy canvas shows the
wide variety of considerations on which Grab engages and spends, while the vertical scale
indicates the volume of offer that customers get across many major competitive characteristics.
A quantification, also called as a high - level political, is a graphic depiction of a Grab's relative
performance in relation to the industry's competitive components (Daska, 2018). The strategy
canvas allows the Grab to see all of the factors that an employee worked on and spends in, as
well as what buyers get and the strategy characteristics of the main rivals, in one easy-to-
understand image.
It shows how identical the players' strategies look to consumers and how they are dragging the
market to the red ocean. It sets an agreed baseline for change, which is critical.
The strategy canvas has two functions: first, it provides as a visual representation of plan.
• It depicts the current level of play in the identified market region, allowing consumers to
comprehend the components on which a Grab concentrates and spends, as well as the advantages
that purchasers receive and the tactical qualities of the major players (Zhou and Chen, 2021).
• It encourages users to act by changing their focus away from competitors and more towards
options, as well as from industry customers to non-customers, and it assists Grab in visualising
how a blue ocean strategy differs from the existing red ocean reality.
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Compare Grab and its competitors
Basis Grab Uber
Ratings Grab only authorizations
customers to hurry drivers.
Uber certificates both
customers and passengers to
give grades.
Wages GrabCar has a pre-determined
cost structure, so consumers
will not be shocked when they
get at their destination.
Uber compensates clients
based on the distance and time
it takes them to travel, as well
as a non-refundable deposit.
Pricing Strategy As part of their war strategy,
Grab uses predatory pricing.
This means that companies
charge less for a service (like
transportation) than the seller's
marginal cost (Jiang and Tan,
2019). As a consequence,
firms are able to keep client
transportation costs low while
Uber has begun to boost
pricing for consumers who it
feels are willing to pay higher
prices not just when
congestion occurs the number
of available drivers, but also
when sales surpass the number
of available drivers.
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raising the price for fewer
services.
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CONCLUSION
It is concluded from the above report is that the preceding analysis concludes that open
innovation is not a novel notion. Innovations are always readily exchanged between businesses
and across national borders. Successful entrepreneurs have the passion, determination, and
enthusiasm to overcome challenges and start new businesses. Take on new business ventures. A
business owner must be inventive in order to recognise business opportunities that will fill gaps
in the market. The notion of open innovation isn't new. Cross-organizational and cross-border
collaboration has traditionally been a free-for-all. Open innovation is gaining popularity because
it allows us to obtain access to new ideas and the social media that have experienced life around
them, which was before unattainable. The process of creating a product or service that provides
customers with significant added value. The process starts with choosing a customer and a
market, then moves on to identifying and prioritising opportunities, and finally, to creating a new
product or service. If you innovate, you have a higher chance of adapting to changes and
uncovering new options. It might also help you get a competitive edge by helping you to
generate better products and services for their customers. The goal of innovation is to make
things better by a factor of ten. Exploration, risk-taking, and creativity are typical characteristics
of innovation. As a result, innovative goals may be more ambiguous than traditional business
objectives, which seek obvious and quickly attainable outcomes. What innovation is all about is
people being creative and distinctive in their job. Every organisation, person, and thing wants to
be thought of as innovative, but the notion of improvement is what separates true innovation
from the rest. Innovation is only a storey that is told for the sake of telling it. Their development
is aided by innovation, which also contributes greatly to economic advancement. It helps in
problem solving, which is becoming more vital as the world's issues get more complex.
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REFERENCES
Books and journals
Adamenko, M. and Kornukh, O., 2021. Development of an integrated approach to assessment of
indicators of personnel innovation in the conditions of innovative development of the
enterprise.
Koziol, L. and Koziol, M., 2019. The concept of dichotomy of the innovation process in an
enterprise. In Smart Tourism as a Driver for Culture and Sustainability (pp. 89-101).
Springer, Cham.
Xu, J., 2018, May. Research on enterprise marketing strategy based on product life cycle theory.
In 8th International Conference on Social Network, Communication and Education
(SNCE 2018). Atlantis Press.
Tsekhovoy, A.F. and Mukhtar, E.S., 2020. Background for forming an innovative model of
enterprise development in Kazakhstan. Central Asian Journal of Social Sciences and
Humanities, 6(3), pp.16-21.
Bespalova, V.V. and Kadyrova, O.V., 2018. Process Innovation Projects In Enterprise
Development Management. Business Strategies.
Nasution, A.P. and Sarkum, S., 2018, November. Strategy for Developing the Local Foundation
for Small Business Enterprise in Indonesia: A Review of the Industrial Revolution 4.0.
In 1st ICUTK International Conference 2018 (IIC 2018)“Globalization and Current
Business Trends in Industrial Revolution 4.0” (p. 39).
Yang, J., Lang, L. and Song, S., 2021. A Study of Data-Driven Enterprise Human Resource
Management Model. Discrete Dynamics in Nature and Society, 2021.
Merzlikina, G.S., Oleinik, O.S. and Mogharbel, N.O., 2021. Sustainable Innovative Development
of a Regional Enterprise: Strategic and Operational Potential.
Audretsch, D.B. and Belitski, M., 2020. The role of R&D and knowledge spillovers in
innovation and productivity. European Economic Review, 123, p.103391.
Daska, M.D., 2018. 10.1 Enterprise Innovation in Developing Countries: Evidence from
Ethiopia.
Zhou, W. and Chen, X., 2021. Study on the Integration of Vocational School Student Ideology
and Enterprise Education. BCP Social Sciences & Humanities, 14, pp.97-101.
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Jiang, Q. and Tan, O., 2019, October. Corruption and enterprise innovation under the
background of transition in China. In 2019 6th International Conference on Behavioral,
Economic and Socio-Cultural Computing (BESC) (pp. 1-5). IEEE.
Chege, S.M., Wang, D. and Suntu, S.L., 2020. Impact of information technology innovation on
firm performance in Kenya. Information Technology for Development, 26(2), pp.316-
345.
Ahman, E. and Mulyadi, H., 2019. THE EFFECT OF INNOVATION ON BUSINESS
COMPETITIVENESS OF SMALL AND MEDIUM ENTERPRISE IN INDONESIA.
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