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Key Drivers of Innovation and Entrepreneurial Vision of Grab: A Case Study

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Added on  2023/06/15

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This case study analyzes the key drivers of innovation and entrepreneurial vision of Grab, a leading mobile transportation and technology company in Southeast Asia. It covers the importance of management, technology, organizational culture, finance, and collaboration in the success of the company. The study also critically analyzes the different approaches used by Grab to shape its entrepreneurial vision and business model, including Porter generic strategies, Ansoff growth vector matrix, Blue Ocean Strategy, and strategic canvas.

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STRATEGY ENTERPRISE
AND INNOVATION

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Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Key drivers of innovation for the success of the company..........................................................3
Critically analyse different approaches used by Grab to shape its entrepreneurial vision and
business model.............................................................................................................................6
Blue Ocean Strategy....................................................................................................................8
CONCLUSION..............................................................................................................................12
REFERENCES................................................................................................................................1
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INTRODUCTION
Grab company is the South east Asia's leading mobile transportation and technology
company which was founded in 2012 in Malaysia that provides variety of services such as ride-
hailing, food delivery, grocery delivery and other financial services etc. The company also
introduced an app which was basically designed to improve the safety of the drivers and other
riders in Malaysia(Buruhanutheen, et.al, 2019.). The company has distinctive super-app which
has become competitive advantage for other companies as it provides on-demand services to its
consumers. Grab has a vision to bring quality of life to everyone and create economic
opportunities and access to safer and high quality services.
In 2019, the company launched a social impact programmes named 'Grab for Good' in order to
improvise the digital skills. The company has two main competitors in the super-app industry is
Go-Jek founded in Indonesia and Uber which has major controls in various countries. The report
covers the case study related to the Grab company and various key drivers of innovation which
contributes in the success of the company(Suhami, et.al, 2018). Different approaches to shape
the vision and business model of the organization. Along, with this Blue Ocean Strategy
framework is used to compare the competitors in the industry.
MAIN BODY
Key drivers of innovation for the success of the company
Innovation is considered as the driving force of the competitiveness of the companies.
Without innovation in the operations and resources, it is impossible for the firms to survive in the
dynamic business environment. The dynamic environment is becoming more challenging when
the company move towards innovation. The Grab company understood the importance of
innovation and how it can benefit the company in positive way(Smallman, 2018). The company
gave importance to every aspect which is crucial for the success of the company today and in the
future. The various drivers which lead to the success of the Grab company is management.,
technology, the organizational culture of the company, finance and collaboration of the company
with expert teams for generating new and innovative ideas which has benefited the company.
Management:For every organization management plays a very important role as it
involves planning, organizing, directing, controlling and coordinating the activities which
is to be performed for the effective functioning of the company(Brand, et.al, 2021). Grab
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company has adopted various new plans and strategies in its management system and
introduced various innovative ideas in its management system which has successfully
contributed in the success of the company. The company also analysed factors that can
affect the functioning of the company and modify its plans and policies in its
management which helped the company to grow as compared to other companies in the
market.
Technology:The business environment is dynamic in nature and involves changes which
can highly affect the functioning and operations of the company. One of the factors that
can negatively impact the productivity of the company is the technological
changes(Polese, et.al, 2018). The company has always focused on the using and adopting
the latest technology which has helped the company to grow and the company also
provided various online services that helped to expand its customer base and also
improve its brand image in the market. The company has also provided a variety of
services such as food delivery services, prepaid and hotel booking services etc.
Organizational culture:Only innovation is not important for the company but the
leaders and the employees should also understand the importance and how the innovation
can benefit the company. Grab company has trained their employees in solving the
problems and issues and leaders promoted about the different changes and creation in the
company which helped the employees to understand the importance of adopting new
culture in the organization(El-Kassar, et.al,2019). The company also focused on
exploring new and creative ideas in innovating and creating new policies in the company
which can lead the company towards success. The company also trained their managers
on how to lead the innovation so that it is reached to every team member.
Finance:Finance plays a very important role in innovation and for the success of nay
company. It is very necessary for the company to have financial resources as it most of
the cost is incurred on the research and development of new ideas which can help the
company to succeed in the market. The company also requires funds for adopting latest
and new technologies which is very important for innovation and development of the
company. The company has utilized its funds and resources where it is mandatory for
invention. The company has used various fund innovation activities by using different
funding tools that helped the company to find investors(Benitez,et.al, 2020). The non-

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availability of funds can create a barrier for the company to create new model for the
business and can hamper the success of the company.
Collaboration:The company has collaborated with the team of experts in order to
develop new and creative ideas in the innovation process. It helps the companies to
compare the views and ideas which benefited the company and also helps in executing
those ideas for the success of the company. The experts suggest creative and innovative
ideas which helped the company to gain its knowledge which is beneficial for the growth
of the company in the future. Collaboration is important for the company as everyone
brings different as well as unique set of skills and knowledge. Apart from this working
together helps in generating new ideas and blend it together which has helped the
company to compete in the market and retained its existing image in the market.
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Critically analyse different approaches used by Grab to shape its entrepreneurial vision and
business model
Through the history of Grab, it has been analysed that it has strong market positioning
and due to their entrepreneurial approaches and success, company is able to stay ahead in the
competition. This can be supported by using different approaches which are as mentioned below:
Porter generic strategies
The quoted firm uses this model in order to remain competitive at global level because
the three generic strategies assists to attain the high performance and that is why, it gain
competitive advantage as well. Further, it can be stated that Grab uses this strategic model, as it
describes how a company pursue competitive advantage across different market scope. By using
its all three strategies, company is able to reflect the choices that made regarding the type of
competitive advantage. These are as mentioned below:
Cost leadership: With the help of this strategy, company can set out to become a low cost
producer in an industry (Subrahmanyam and Azad, 2019). In the context of Grab, it continuously
changes and innovate it services that help to remain competitive and attract new customers
towards it. For example, at unit level Grab open its first taxi in Malaysia in 2012 and then it
continues its journey where at 2018, acquire Uber’s Southeast Asian operation through its
services. Along with this, Grab launches its artificial intelligence lab with National University of
Singapore. Therefore, it has reflected that firm’s winning market share is cost effective but when
it expands the business at corporate level, it is able to attain profitability and gain high return on
investment as well. For example, in April 2014, company collect the amount as 5.3 million
whereas the amount increases by 1 billion at June 2018. This in turn reflected that with the help
of cost leadership style, company can determine the overall performance and gain success as
well.
Differentiation: It is refers to the firm who seek to be unique in its industry along some
dimensions that helps to value the buyers. Thus, by offering the products with its unique
attributes help to attract range of customers towards it. In the context of Grab, it launches its
unique ‘Grab for Good’ social impact programme with the partnership with Microsoft that assist
to improve digital skills and create an inclusive opportunity for all consumers (Firoz Suleman,
Rashidirad and Firoz Suleman, 2019). With this initiative, company enable deaf and hearing
impaired to gain increase an access and participate in a digital economy as well. So, this unique
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attribute assists the firm to increase the sales and shape the company’s performance as well. In
addition to this, it assists to gain strong competitive advantage within a business.
Focus: The strategy is helpful to narrow the competitive scope within an industry. Also,
it can be also stated that within focus strategy, company either used differentiation or focus. This
in turn assists to help to improve the target market and realise buyers to invest within a business.
In the context of Grab, it also uses different innovative methods to attract range of employees
and customers towards it (Greckhamer and Gur, 2021). For example, it launches own Artificial
Intelligence which in turn assist to improve the operations so that effective outcomes can be
generated. Through this, Grab can also improve the performance and create a better outcome as
well.
Ansoff growth vector matrix
The model is also effective to determine the strategic position so that competitive
advantage can be gain. This in turn causes positive impact over the business performance. In this,
four different types of position can be used as per the defined situation which help Grab to make
decision effectually and generate a better outcome as well. Also, the tool is beneficial to grow
and also analyse the risk associated with the same. These are as mentioned below:
Market penetration: This strategy is helpful to increase the sales within its existing
products in a current market (Jintana, Sopadang and Ramingwong, 2021). In the same way, Grab
also uses this strategy that help to improve the sales. Like, in 2012, when company started with
its new feature for the safety of taxi and riders, it gains strong competitive advantage. Thus, by
using different innovative items, company started to expand business to grab further opportunity.
Product development: It is all about introducing new product to an existing market with
an aim to improve the business performance and grab attention of many customers as well (Kim,
Ku and Lee, 2020). Through this manner, company is able to leave a positive impression towards
others. For example, in January 2016, Grab started new feature in its business i.e. GrabPay where
customer pay online and this in turn attract range of customers towards it. This shows company
have enough services and with the changing era, it adjust its operations and sustain the brand
image at existing market as well.
Market development: Through this, company enter into new market by using its existing
products and Grab is mostly uses this method in order to remain competitive and attract range of
new customers towards it. Also, it has been reflected that in 2013, it enters in Philippines,

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Singapore and Thailand with the same product, whereas in 2014 it expands into Vietnam market.
Thus, it shows that company is able to improve the business operations and increase the sales as
well to improve the brand image at global level.
Diversification: It is considered one of the most riskiest strategy than others because
here, company offers new products within new market and that is why, the chances of losses will
be high (Loredana, 2017). In the context of Grab, it can be stated that company is uses this
strategy where in 2016, it moves ahead into food delivery space with GrabFood in order to
pitting against UberEats. This in turn reflected that company knows how to invest into new
business that help to improve the business performance and generate a better outcome as well.
That is why, the chosen methodology is far beneficial to improve the brand image as well.
Blue Ocean Strategy
Blue Ocean Strategy is a framework related to the product differentiation and low cost in
order to open up new market and create demand of the product and services of the Grab
company. Blue Ocean Strategy helps the company to grow market share and minimize the risk
related to the business. It is known as innovation strategy which helps the company develop new
ideas and methods which can benefit the company and helps the company to diversify its
products and services in the market(Lauer, 2019). Grab company was founded in 2012 in
Malaysia which provided on-demand services such as food and grocery delivery services. The
company took competitive advantage by introducing the distinctive and unique application that
provided on demand services to the millions of the consumers. The success of the company is
related to the Blue Ocean Strategy it conquered large share in the market. The company made
innovation in its products and services. The company has established a vision to improve the
quality of life of people by creating economic opportunities and providing high quality services
to its customers. The company in order to obtain market share launched the social impact
programme known as Grab for Good which aims at improving the digital skills and literacy rate
by providing training to the number of people creating opportunities for the consumers in digital
world. The company also aims to empower the small scale entrepreneurs and small scale
business which the company thinks is good source of employment in Southeast Asia's
economies(Gobble, 2018). The programmes implemented by the companies help to train the
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workforce. The social impact programme is focusing on creating new opportunities for the
people.
Strategic canvas
Strategic canvas is a great tool to visually compare the solutions available in a particular
market and also compare the solutions targeting the various customer segments. Being a leading
transportation and technology company Grab provides the on-demand services such as food
and grocery services and also mobile payments services. The company focused on targeting a
specific segments of the customers and by adopting this strategy the company successfully
diversified the area of the company. The business model of the company lays emphasis on the
social impact, safety and reliability in transportation including various different services like
mobile payments etc. The company emphasized on the social impact and launched the social
impact programme 'Grab for Good' in 2019 in partnership with Microsoft to improve the digital
skills and literacy by providing training empowering number of people and providing ample of
opportunities for the consumers in this digital world. The company has set various goals which
is aimed to achieve till 2025.Grab's main competitors are Go-Jek that also provides on-demand
services including mobile payments, shopping and food delivery(Loh, and Lau, 2019). The
company created a strategy where they eliminated the price negotiation and aimed at offering
consistent fare for rides to its customers. The company emphasized on the hiring experienced
drivers and organize various training programs in order to ensure safe driving practices. The
company focused on the safety of the riders by introducing tracking system in their vehicles.
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Value curve
The concept of the value curve was introduced in 1997 by the academics W.Chan Kim and
believed that effective strategy should consist of clear focus, divergence from the competitors
and compelling tag line. It aims at comparing the strategy of the Grab company with their
competitors. Value curve helps to identify whether the strategy of the one company is different
from its competitors which helps the company to gain competitive advantage over the others.
Modern enterprise operate in the extremely competitive environment and The Blue Ocean
Strategy is as alternative related to the competitive market and helps in developing and
Exploiting new market space. The value curve is one of the component of the strategy canvas
and is the geographical representation of the company's profile which reflects its position among
the competitors in the industry. It focuses on the number of competitors of the company such as
Go-Jek and Uber from the marketing perspectives. Both the competitors are constantly
Competing for the customers and the investors in the areas of transportation and financial

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Services etc. The difference between the marketing strategy of Go-Jek and Grab is that former
Company prefers partnership for tighter control whereas the latter company prefers both
Partnership and joint venture in order to be more competitive in the market.
The other competitor of the Grab company is the Uber which invested around $700 million in
South-east Asia. In order to increase its area of market the Grab company acquired all the assets
and operations of the UberEats in Indonesia etc. The made its huge investments in the area of
research and technological developments in its core markets including India as well. The Grab
company acquired Uber in Singapore in order to take competitive advantage over other
company. The regulators of the Singapore the Grab company to restore its pre merger price and
also to remove obligations on the drivers and taxi fleets(Kyrylov,et.al, 2020). All the competitors
are being rivalry try to hold maximum market share in order take competitive advantage over
other competitors as the companies are adopting and making innovation in its strategies and
plans to gain competitive advantage over the other competitive firms of in the industry. The Grab
company has more engagement in the market as compared to the transportation whereas Uber
continued focused on prioritizing the transportation of financial services. For future growth of
the company.
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CONCLUSION
From the above report, it can be concluded that our business environment consist of the
total of internal and external factors which affects the functioning of the company, so it is
important for the company to examine these factors and make changes and innovation in the
management of the company for effective functioning of the firm. Strategic innovation refers to
the redesigning or creating the strategies of the business for its future growth and also to compete
in the market and industry. The company' maim is not only generating revenue but also to satisfy
the need and preferences of the customers in order to retain the image of the company. The
report illustrates about the Grab company which was founded in 2012 in Malaysia and is the
leading transportation and technology company that provides variety of services to its customers
such as food, grocery and financial services to its customers. The company was focused on
targeting the potential customers in a particular geographical area. The company also
emphasized on the social impact and launched a programme focused for the welfare of the
customers and providing services to its customers.
The company has its main competitors that is Go-Jek and Uber which have their business
strategies in order to gain competitive advantage over other competitors in the industry. Drivers
of innovation of the Grab company is discussed for the success of the company and for future
growth of the firm. These drivers help the company to make new and creative ideas for the future
growth of the company and also helps to competitive in the market. Different approaches to
shape the business model of the company is also discussed like Porter generic strategies and
Ansoff growth vector matrix. Apart from this, the Blue Ocean Strategy is applied in order to
differentiate the products and services of the company from its competitors and the factors which
makes it different to compete in the changing environment.
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REFERENCES
Books and journals
Benitez,et.al, 2020. Industry 4.0 innovation ecosystems: An evolutionary perspective on value
cocreation. International Journal of Production Economics.228. p.107735.
Brand, et.al, 2021. Agility as an innovation driver: towards an agile front end of innovation
framework. Review of Managerial Science.15(1). pp.157-187.
Buruhanutheen, et.al, 2019. Analysis of safety & pricing issue in grab’s car & the solutions.
International Journal of Accounting & Finance in Asia Pasific (IJAFAP). 2(2).
El-Kassar, et.al,2019. Green innovation and organizational performance: the influence of big
data and the moderating role of management commitment and HR practices.
Technological Forecasting and Social Change.144. pp.483-498.
Firoz Suleman, M., Rashidirad, M. and Firoz Suleman, S., 2019. The applicability of Porter's
generic strategies in pure online firms: A case study approach. Strategic Change. 28(3).
pp.167-176.
Gobble, M.M., 2018. Digital strategy and digital transformation. Research-Technology
Management.61(5).pp.66-71.
Greckhamer, T. and Gur, F.A., 2021. Disentangling combinations and contingencies of generic
strategies: A set-theoretic configurational approach. Long Range Planning. 54(2). p.101951.
Jintana, J., Sopadang, A. and Ramingwong, S., 2021. Idea selection of new service for courier
business: The opportunity of data analytics. International Journal of Engineering Business
Management. 13. p.18479790211042191.
Kim, I. H. S., Ku, T. Y. D. and Lee, B. Y. M., 2020. Business model schema: business model
innovation tool based on direct causal mechanisms of profit. Technology Analysis &
Strategic Management. 32(4). pp.379-396.
Kyrylov,et.al, 2020. Formation of Enterprise Management Strategies and Entrepreneurship
Training.
Lauer, T., 2019. Generic Strategies, Outpacing and Blue Ocean-Discussing the Validity of Three
Strategic Management Theories Using Case Studies from Airlines and Grocery Retail.
Theory, Methodology, Practice.15(1). p.57.
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Loh, K.L. and Lau, D.H., 2019. Blue ocean leadership in lean sustainability. International
Journal of Lean Six Sigma.
Loredana, E. M., 2017. The use of Ansoff matrix in the field of business. Annals-Economy
Series. 2. pp.141-149.
Polese, et.al, 2018. Social innovation in smart tourism ecosystems: How technology and
institutions shape sustainable value co-creation. Sustainability.10(1). p.140.
Smallman, M., 2018. Citizen science and responsible research and innovation. UCL Press.
Subrahmanyam, S. and Azad, S., 2019. Carrefour’s Competitive Strategy-Cost Leadership and
Differentiation: A Case Study. Pacific Business Review International. 11(8). pp.137-45.
Suhami, et.al, 2018. Service attributes, customer satisfaction and return usage: A case of Uber
Malaysia. Journal of Tourism, Hospitality & Culinary Arts.10(2). pp.81-103.
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