Key Drivers of Innovation and Entrepreneurship in Grab: An Analysis

This report provides a detailed analysis of the key drivers of innovation and entrepreneurship in Grab, a leading super app in Singapore. It evaluates the different approaches undertaken by Grab to shape its entrepreneurial vision and business model, using Porter's generic strategy and Ansoff matrix. The report also evaluates Grab's success with the help of blue ocean strategy and compares it with its competitors. The report covers topics such as market penetration, market development, product development, and diversification.

Strategy, Enterprise and
Innovation

TABLE OF CONTENTS
1.INTRODUCTION........................................................................................................................3
2. Evaluating the key drivers of innovation contributing to the success of Grab.......................3
3. Analysing the different approaches undertaken by Grab to help shape its entrepreneurial
vision and business model...........................................................................................................6
4. Blue ocean strategy...............................................................................................................11
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................14

1.INTRODUCTION
Innovation is a process or practical implementation of ideas which is done by company,
helps them to introduce products or services in a new way. Grab, Singapore is a leading super
app providing everyday services to their customers such as financial services, home delivery,
mobility and others. The company has announced an enhanced collaboration in order to provide
customers convenient access to use services anywhere across the world. The firm provides
facility to their customers such as online shopping where they can make purchase of different
types of goods or services. Customers can buy packaged food, healthcare goods, groceries and
do online booking others via Grab app.
The present report will provide detailed information about key drivers of innovation
contributing to the business success of the company. The report will give appropriate innovation
and entrepreneurship models and theories to support evaluation. Furthermore, the study will use
strategy in order to analyse the different approaches which has been undertaken by Grab to help
shape its vision and business model. The firm will use porter’s generic strategy to support
analysis of business level competitive strategies and Ansoff matrix to support analysis of
corporate level. At last, the study will also evaluate the Grab’s success with the help of blue
ocean strategy and compare with its competitors.
2. Evaluating the key drivers of innovation contributing to the success of Grab
Grab is the popular super app providing services to people like home delivers, online
shopping and others. The company established to provide facilities to UK’s people, they have
launched its unique Grab for Good social programme in partnership with Microsoft which is one
of the leading company. This project has been developed by the company to improve digital
skills and provide training to empower population of UK. This project is also helping to open
new opportunities for digital literacy and upskilling for people in southeast Asia.

Success of Grab
Customer
satisfaction
Helping
others
Technology
Customer
demand
Rewards and
subscriptions
Grab app
Online
payment Online
booking
Home
delivery
Understanding
customer
trends
Long term
commitment
Financial
services
Mobility
Grab mart

Grab mastered the super app- Nowadays, after COVID- 19 pandemic people are more
concern about social distancing and their health so they prefer to purchase things online without
visiting stores or supermarket. The firm has provided services like paying bills, transportation,
home deliveries, online purchasing, online ordering food and booking hotels. This is the major
key component behind the success of Grab app. It is the one stop app that satisfies customer’s
demand and their daily routine services.
Rewards and subscriptions – the company is also providing rewarding system to help
customers, this is the best way to encourage people towards company’s product or services. With
the help of this strategy, the firm has built loyalty of existing clients and has attracted new
customers also (Dieterich, 2018). The firm offers extra points or reward points for spending on
Grab app and later the customers can redeem points in the form of cash vouchers at different
locations such as coffee shops, KFC. By adopting this strategy, the firm has successfully
satisfied their loyal customers because they can redeem points for free Grab bikes, these are the
smart moves taken by the Grab.
Technology innovation- Due to heavy competition technology, people are more focused
on adopting things in an easy way through new technology such as online shopping, paying bills
online and booking hotels or transportation (Hudec, 2018). The company has satisfied their
customers with the help of innovation and provides enough benefits and functionality to keep its
customers from ever needing to close the Grab app. Today, travellers can easily make payment,
online order food, pay their bills, book hotels and send deliveries all activities can be done
through Grab app.
Customer demand- As per the customer trends and buying behaviour of them, the firm
has successfully updated its marketing strategy in order to build customer loyalty and
satisfaction. They have fulfilled the demand of customer by providing them long term
commitment, For example- mobility, Grab car for transportation, Grab Bike and others.
Customer satisfaction- Grab is truly amazing application and giant tech company among
all, thus they have clearly understood the use of technology in the business environment. These
advantage of technology and innovative world, gave the company valuable information and data
insight into its drivers and clients. This has successfully leads to the promotion of transportation
in few markets. The real time data of clients can be used by the company to unlock the functions

of automation and enable them in order to fully understand the needs of clients in this
competitive market.
Research and development – the company has successfully shown its long term
relationships and commitment to UK people. They have more than 1000 employees working in
the company to achieve success in digitalization and technological world. Around 100 engineers
are working in its R&D Department, they have provided a lot of achievement in this field in
order to achieve success.
Helping others- the company has helped over 1.5 million micro entrepreneurs so that
they can open their first bank accounts, also help them in cashless usage by providing them
strong and long term commitment in order to support future. The firm is also helping other
through the improvement of skills like digitalization skills and knowledge about digital world.
Furthermore, the firm is empowering driver partners to thrive in the digital economy in order to
develop their tech enabled careers with support from the company called Microsoft.
3. Analysing the different approaches undertaken by Grab to help shape its entrepreneurial vision
and business model.
A business model and innovation models provides a detailed information in order to
identify ideas related to company’s strategy for profitability purpose by doing business. Models
are generally involving data of customers, likes and dislikes about products or services and
business plans, target markets and other expenditures. There are two business model such as
price and cost both are the reason behind the success of the company and customer satisfaction.
The vision statement of the company says that drive southeast Asia forward by solving
problems which include real world transport issue, mobile payments issues, online shopping
issue and other products or services related problem. These problems can hinder progress of the
company and may affect the productivity. The major goal of the company is to design goods and
services that are really affordable and reasonable for customers of all income levels. This goal
will motivate people to buy services from this company and improve digital skills. The major
objective is to create business opportunities and income level for all the partners of Grab so that
they can effectively understand the digital skills.
The firm facilitates social, financial services, economic activity helping others to build
their business such as small businesses, start-ups and strong communities. The company offers
various services such as digital payments so that people can pay bills online via mobile app.

After the pandemic people are more attracted towards online purchasing of clothes, food items
and groceries. The firm offers Food delivery so that people can easily make purchase without
visiting stores, this facility has attracted more people of UK.
According to Michael porter, the company’s strengths ultimately fall into headings such
as differentiation and cost advantage. By applying these strengths into scope whether it’s a
narrow or broad the strategies result differentiation strategy, cost leadership and focus strategy.
These methods are applied at the business unit level to support competitive strategies in the
market.
Source: (Hales and Mclarney, 2017)
Cost leadership- when the business or company set out to become a low cost producer in its
particular industry is known as cost leadership strategy. This strategy is used by company to sell
its products or services either at average industry price in order to gain market position or share.
Majorly, this strategy targets a broad and big market, in other words when the firm produce more
reasonable products then it will remain profitable for longer period. There are different ways that
the company can acquire to maintain market position: such as by improving business practice,
strategies, efficiencies, gaining unique access, adopting optimum utilization of resources method,
avoiding some of the costs altogether. For example- when the competing organisation are unable

to lower their product costs then firm may be able to maintain its position in the market or gain a
competitive advantages based on its cost leadership strategy.
Grab is focusing on the improvement of payment alternatives and new ideas for drivers and
customers at affordable price. They have created their competitive advantage in the market by
lowering the cost of production this has attracted more customers towards the brand. The
company has created their competitive benefits by lowering the service cost.
Differentiation- The Singapore ride hailing and food delivery firm’s listing is expected to be
the largest and most popular in tech company from southeast Asia. The company promote many
services in order to satisfy the needs and wants of customers such as motorcycle taxis, bus and
transportation facility, private car services and other shuttle services. The booking can be done
through online app of Grab, by using this app customers or travellers can book anything online
and make payment easily (Porter’s generic strategies, 2021). Due to increasing demand of
technology, the company makes advertisement through market campaigns and other social
events where people can understand the detailed information about the products or services
provided by the company. For example- the company is utilizing family car as their tax hailing
vehicles so that people can easily travel and make them comfortable and satisfied.
The marketing team of the firm show their clients that they work their best level to offer
great services and to provide customer convenience. The major aim is to help them in everyday
services of life through mobile app. With the help of this app, the life of people became very
smooth and they have great experience about digital skills (Abdolshah, Moghimi and Khatibi ,
2018). They have started doing market campaigns from their official website to show valid
content to audience. During lockdowns, many company loosen in cities such as Singapore, but
Grab sees the shift to digital services like online shopping and online home food delivery. In the
big cities of UK, where the traffic jams are infamous, with the help of food delivery system the
company continue to grow business as customers are saving time and their energy by staying at
home.
Focus strategy- the company is focusing on improving payment modes so that people can
make payment online such as paying their bills and booking hotel rooms and other through one
application only. They are more focused on satisfying their loyal customers and new clients in
order to maintain their customer base they have promoted many services. They have offered

many services in order to satisfy the needs such as cycling service, transportation and car
services.
Ansoff matrix
It is a strategic tool or method used by the company to facilitate and guide businesses in
order to make important decision so that they can achieve business growth and development.
There are many external factors which may impact the company’s performance such as political
policies, economy of a region and internal factors such as talent management like employees. On
the basis of these factors, the company decide various strategies related to its business growth.
Source: (Loredana, 2017)

Market penetration- this method is used by the company who want to grow their business
and existing products in markets where their brands are already existing. Increased production
capacity will allow the company discovering new markets for development in the country in
order to reach more customers. Due to rise in attractiveness and competitive pricing war within
the same market will also increase sales and consumption of services thus it will create a high
market penetration. They should also increase its investment in promotional activities such as
advertisement and marketing campaigns to increase market penetration.
They need to develop their design in order to engage communication content in the business
market. This will allow the company to reach more new customers with in the market and
achieve competitive advantages. It is necessary to explore and expand new and innovative ideas
of distribution channel (Ansoff matrix, 2021). It can ultimately explore the new channel of
distribution so that they can reach new clients and make their own segmentation strategy in order
to target markets. By lowering operational costs will be beneficial for the company.
Market development- this method can be used by company to enhance its business
development and growth through introducing existing goods in the new markets. They needs to
invest in R&D in order to identify the possible customer segments and new markets to sell its
services or products.
Product development- the company can introduce improvement in existing products in order
to provide good facility to customers new and enhanced offerings. This will increase
consumption and sales of goods in the market. by launch new products in the market with the
help of research and development method (Yaqoob and Omer, 2021). This can be done by
understanding the customer needs and customer purchasing behaviour by adopting new
technology, innovation and creativity. They can also engage by introducing different varieties of
quality products or services in the same market.
Diversification- it means looking for business development and growth of business by
introducing new goods under the existing product lines (Zanjani and et.al., 2020). It will be
beneficial to explore new business ideas and option so that company can launch their new ideas
or acquire those goods for development.
4. Blue ocean strategy
Blue ocean strategy is a method used by company as it simultaneous pursuit of low cost and
differentiation method to open up a new market position and gain competitive advantage by

creating new demand of products or services. This method is all about capturing market area, so
that they can gain competitive advantage easily. if the company use this method, they can create
market space by shifting the target market or customer of the same industry from corporate
purchasers to users. this method is a complete set of analytical tools in order to formulate a
strategic business move with respect to blue ocean. In other words, blue ocean is all about
creating own brand and building it so strong that company have control of the business market
for decades (Blue ocean strategy, 2021). Nowadays, as per the trend businessmen don’t want to
compete with rivals as they forget about business success through head to head competition. In
order to create business successful, one need to think creatively, differently and not battling
competitors.
With the help of blue ocean strategy, company can develop and thrive within an uncontested
market space, and make competition irrelevant (Priilaid, Ballantyne and Packer, 2020). For
example- If any company is facing battling issue with their competitors in a marketplace, then
this method is really helpful for them. With the help of this strategy, firm are encouraged to
create new frontiers of opportunity instead of fighting over the same market position with
countless others.
It is necessary to choose the right place to start business and construct the right blue ocean
team for the business success. It is also important to understand the current market situation in
order to create position in this competitive world. Another step is to systematically reconstruct
business market boundaries for the improvement of blue ocean opportunities. With the help of
this method, Grab can have the opportunity to turn their non-customers in distant markets into
client’s overtime. By utilizing this method, the company is virtually rival less and any substitutes
that come very close to competition are only imitating their business practice or process to a
lesser degree. If the Grab is using this method then, it will break the value cost trade-off for
them. it will align the whole business system and its activities in pursuit of low cost and
differentiation strategy.
By using this strategy, Grab is creating demand in the marketplace as it the big opportunity
for development and growth that is profitable for the company’s progress. Here, the competition
between company is irrelevant in nature because it can describe about the deeper potential in
unexplored business market (Shafiq and et.al., 2019). by adopting this method, the company is

achieving profitable development and growth in terms of market space. This method helped
businesses a lot in improving their business strategy canvas.
In other words, Grab is skipping the bloody red oceans of rivals to avoid battle with other
companies and creating their very own blue oceans which is beneficial for market place. They
are gaining opportunity for highly profitable growth and development by focusing on innovation
and technology. It has inspired entrepreneurs of different industry; thus their ideas are presented
directly to competitive advantages. The company focus less on beating the business competition
and more focus on value innovation and using new technology to open up market space. Grab is
built on the trust and loyalty of its users with the help of mobile app customers can make their
life better.
With the technology for online shopping and digital world, the trend towards home delivery,
online payment and online booking was clear for the company. This trend was underscored by
the fastest growing demand of online shopping and mobility. Grab capitalized on this trend with
a clear objective of providing everyday service in all in one platform via Grab app. They provide
services like food delivery, Grab mart for groceries, parcels, Mobility and financial services like
investment, cashless payment and insurance. In agreement with major companies such as Uber,
Gett, oBike- Grab offered easy to use and Grab car for the convenience of customers. By
allowing people to make online payments for all basic services and everyday services company
satisfy their customers.
CONCLUSION
To conclude, innovation model provides a detailed information about ideas and identify
about the implementation of ideas and creativity. It is necessary to focus on adopting techniques
and new methods in order to create the needed value. By evaluating the report, it has been
concluded that Grab is using different approaches to help shape its entrepreneurial and business
model. Innovation and technology reflects a fundamental change in how the firm delivers value
to its clients, whether through the product development and improvement of new revenue
streams or with the help of distribution channels.
Furthermore, it is concluded that company is using differentiation and cost leadership
strategy in order to attract the customers. In addition to this, the report has summarised that,
company is focusing on market penetration in order to sustain their position in the market. It is

helpful to achieve competitive advantages in the market of digitalization. The firm is using blue
ocean strategy effectively in order to create their own demand in the market space. They have
successfully satisfied the basic and everyday needs of customers by providing them services like
online shopping, home delivery of products such as groceries and establish the service called
Grab car and Grab bike.

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