Key Drivers of Innovation and Success of Grab: An Analysis

Strategy Enterprise and
Innovation

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
The key drivers of innovation contributing to the success of Grab............................................3
Reason Behind Grab success......................................................................................................4
SWOT Analysis of Grab.............................................................................................................5
Porter's five forces of Grab.........................................................................................................7
Blue Ocean Strategy....................................................................................................................8
Strategy canvas............................................................................................................................8
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................12

INTRODUCTION
Strategic innovation refers to the procedure followed in the business to redesign and
reinvent the corporate design so that a brand value is generated which will help the organisation
in growth perspectives and getting a competitive edge in the market. Adopting to strategic
innovation in the organisation is crucial as it enhances the profitability and further gives
opportunity to the organisation at the global level (Zartha and et. al., 2018). This report revolves
around the Grab company which is based in South-east Asia, they are one of the leading
transportation and technology firm. These companies provide several services to the customers
such as grocery, food delivery, financial services. The company was founded by Tan Hooi Ling
and Anthony Tan in the year 2012 in Malaysia. The organisation has expanded their operations
and services in more than 338 cities across 8 countries worldwide. This report covers the key
drivers of innovation that contributes to the success of Grab along with this few models are
applied on the company to analyse several areas. SWOT Analysis, Porter's five forces and Blue
Ocean strategy of the respective organisation is covered in this report.
MAIN BODY
The key drivers of innovation contributing to the success of Grab
Innovation refers to the process of application of new ideas in the business so that the
company gets opportunities to enhance their existing services and products or developing of new
products in general. Grab has been always implementing several innovative strategies in the
business so that they can get a competitive edge in the market and become a major market player
in the industry of transport and technology (Huang, Yao and Chen, 2019). The organisation uses
4Ps of innovation so that they can bring more and more unique ideas in their existing business
model and practices. These 4ps of innovation are further discussed below in context of Grab:
 Product innovation- This is the foremost aspect of the innovation in which the main
focus is on the product or service that the company is offering in the market. Product
innovation can be accomplished by making development in the current line of products or
by bringing new set of products and services in the market. In context of Grab, their first
set of services was transportation in which they introduced taxi services in Malaysia after
that they have launched several services in the market so that they can increase their

customer base. They are further looking for launching two new initiatives in the market
that is “Break the silence” and “Grab for Good”. Both of these are social impact
programme in which grab for good program aims to provide digital literacy to more than
3 million people in the South-east Asia by 2025.
 Process innovation- This refers to the innovation in which the organisation makes
modification in the process of manufacturing and delivering the products or services to
the customers in the market (Chongfeng and Yixuan, 2018). In context of Grab, the
leaders and the employees of the company are working towards the adoption of
hyperlocal business strategies and further developing strategic partnership. The
organisation has used these strategies in their process which helped them in acquiring a
good market share and becoming a leading company in the market.
 Position innovation- This type of innovation is concerned with the positioning of the
products and services in the market so it is well delivered. The type of the audience that
they want to target comes under this type of innovation. In context of Grab, they offer the
services to the target customers in a very good manner which helps the organisation in
gaining competitive edge in the market. They offer the services which are used by the
customers on a day to day basis.
 Paradigm innovation- This Last P is associated with the shift in the underlying mental
model by performing a change in the operations of the organisation (Aleksandr and et.
al., 2017). In context of Grab, the business model that they use in the business is highly
emphasised on the social impact, safety and convenience in the field of transportation
which also includes their other services such as financial facilities and the mobile
application.