Strategy Enterprise and Innovation: Grab's Success with Blue Ocean Strategy

This report analyzes the success of Grab, a leading mobile technology and transportation company in Southeast Asia, and how it can be attributed to the successful application of the Blue Ocean strategy. It identifies key drivers of innovation, critically analyzes different approaches undertaken by Grab to shape its entrepreneurial vision and business model, and evaluates the statement using appropriate Blue Ocean frameworks and tools such as Strategy canvas and value curves.

Strategy Enterprise and
Innovation LSBM306

Table of Contents
INTRODUCTION ..........................................................................................................................4
TASK ..............................................................................................................................................4
Give a brief introduction of the case study ...........................................................................4
Using appropriate frameworks and any appropriate tools such as mind maps, identify and
evaluate the key drivers of innovation contributing to the success of Grab ..........................5
By using the appropriate strategy frameworks, critically analyse the different approaches
which is undertaken by Grab to help shape its entrepreneurial vision and business model. .6
Critically evaluate the following statement: Grab’s success can be attributed to the successful
application of the “Blue Ocean strategy.” In your response, apply appropriate Blue Ocean
frameworks and tools such as Strategy canvas and value curves to compare Grab and its
competitors based on the critical success factors for the industry..........................................8
Grab’s success can be attributed to the successful application of the “Blue Ocean strategy.”
this statement can be said yes it is very much true. The blue ocean strategy was originated
from the computer games giant in the form of the Ninetendo Wii. This strategy is defined to a
market for a product where there is no competition or very less competition. It exists where
there is potential of higher profits because of irrelevant competition in the market. Blue ocean
strategy is the simultaneous pursuit of differentiation and low cost to open up a new market
space and create new demand. It is about creating and capturing uncontested market space,
thereby making the competition irrelevant. It is based on the view that market boundaries and
industry structure are not a given and can be reconstructed by the actions and beliefs of
industry players. This strategy is a f9ve step process which is discussed below:(Papa,
Santoro, Tirabeni and Monge, 2018).....................................................................................8
Choosing the right place to start and constructing the right Blue Ocean team for the initiative.
................................................................................................................................................8
CONCLUSION .............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
As the world is changing at an incredible pace, fuelled by new technologies , innovation
management and creating new ideas in the business organisation. enterprise and innovation is the
aspect and important for an individual to study in their higher education to enhance their skills
and develop ideas that strengthen the business enterprises. Innovation is the concept which is
defined as the process that an individual or the business organisation undertakes to conceptualize
brand new products, processes and ideas or to approach the existing products and new ideas in
the new ways. The pu5rpose of the business innovation is the important aspect for the business
organisations which help in creating value of the enterprise. The value can generate from the new
revenue opportunities or driving more revenue through existing channels such as from creating
the efficiencies that can save time in the production processes for the business
organisation(Yang, Qin and Moulaert,2021).This report will include the various topics such as a
brief introduction of the case study, identify the key drivers of innovation, analysing different
approaches undertaken by Grab to help in shaping its entrepreneurial vision and business model,
evaluation of the statement Grab’s success can be attributed to the successful application of the
“Blue Ocean strategy.” by explaining the model.
TASK
Give a brief introduction of the case study
The above case study is about Grab which is the South-east Asia's leading mobile
technology and transportation business organisation which provides wide range of on demand
everyday services to its customers. For example ride-hailing, food delivery, grocery delivery,
mobile payments, and financial services. The company was established with the taxi- hailing app
designed to improve the safety of taxi. Drivers and the riders in Malaysia. The company is well
expanded since then in 339 cities and 8 countries across South-east Asia. The success of Grab
over the years has been strongly supported by strategic venture capital investment funding from
some of the leading financial institutions and strategic partners in Asia, that include examples
such as Vertex Ventures, GGV Capital, Tiger Global. Later in 2019 September the company has
an partnership with Microsoft and launched a social program called “ Grab for Good' to improve
digital skills through training and development so that people are encourages, also by creating
the exclusive opportunities for all consumers in a digital economic drive for the region. Over 9

million micro-entrepreneurs, which represents 1 in 70 people in South-east Asia, have earned
some income through the Grab platform as driver-partners, delivery-partners, merchants or agent
partners. Grab has also helped over 1.7 million micro-entrepreneurs to open their first bank
accounts, and with cashless usage increasing up to 9 times higher on the Grab platform compared
to overall country cashless usage, the company continues to strong commitment to supporting the
moves for a cashless future in the region. However, Grab’s acquisition of Uber in Singapore
sparked outrage from drivers who complained that the combined companies revoked their
incentives, while passengers protested higher prices combined with what they perceived to be a
lower quality of service(Калугіна, Тардаскіна and Сакун, 2017).
Using appropriate frameworks and any appropriate tools such as mind maps, identify and
evaluate the key drivers of innovation contributing to the success of Grab
The success of Grab over the years has been strongly supported by strategic venture
capital investment funding from some of the leading financial institutions and strategic partners
in Asia, that include examples such as Vertex Ventures, GGV Capital, Tiger Global, Hillhouse
Capital, Softbank, Didi Chuxing, HSBC and Toyota. Considering the estimated population of
over 660 million people of the country Southeast Asia is a considered as the huge and growing
market poised which is becoming the world’s fourth largest economy by the year 2030.
However, Anthony Tan, the Group CEO and Co-founder of Grab, argued that not everyone has
equal access to opportunities that come with the region’s fast economic growth. The company
was established with a vision to ‘drive Southeast Asia forward by elevating the quality of life for
everyone’, by creating economic opportunities at scale, enabling access to safer, high quality
everyday services and creating financial inclusion for the underserved in the region. There are
various key factors of innovation which are contributing to the success of the Grab explained
below:(Bespalova, and Kadyrova, 2018).
Grab mastered the super app- This is the first factors which is called “super app”. It is
the one stop app that satisfies a wide range of the daily services of an individual which is very
essential in day to day life activities. For Grab the services included such as transportation,
ordering food, and even booking hotels. This factor is considered as the key component behind
the success of the organisation and it is what the UBER left behind in the south East Asia a year
ago.

Rewards and subscriptions- The reward programs in the Grab is helping the business to
develop and build the customer loyalty. It offers the points for spending on its app, which can be
redeemed for the various cash vouchers at coffee shops, KFC, or for free Grab bikes.
R & D as a differentiator- The Grab has soon its seriousness and long term commitment
to Vietnam. It has more than thousand staff members in the Vietnam which include more than
hundred engineers in its research and development departments. Vietnam is one of the emerging
hot spot for each talent in the region.
Hyper localisation- The way in which Grab has managed whole South East Asia market
transportation needs. The strategy of the Grab is to focus on the services offered in the country to
the customers. The organisation concentrate on giving the good experience to its customers. It is
among the giant technology companies and understand the power of the ABCD technology.
These advantages help the company in gaining insights about its customers which leads to the
promotion of traditional transportation modes in several markets(Wang, 2021).
Social Programs- Grab has recently introduce a social program names as “ Grab for Good” in
the partnership Microsoft for improving the digital skills and literacy through training so that
millions of people are encourages
All the above discussed are the important key factors which indicate the growth and
success of the company. The company is able to reach to the new heights and succession the
south each Asia and is a leading organisation. The above key factors differentiate the company
from its competitors(Krawczyk-Sokolowska, Pierscieniak and Caputa, 2021).
By using the appropriate strategy frameworks, critically analyse the different approaches which
is undertaken by Grab to help shape its entrepreneurial vision and business model.
Every entrepreneur which is been observed across the world or around started with
creating the idea or a image of something of which the individual is passionate about it. An
entrepreneurs vision is the start of a roadmap which will determine where an individual want to
go and how far. The Vision of the organisation says that to what an entrepreneur desires the
business to look like in the future of the person. A vision statement of the organisation is the
picture for what the venture will become in the future: what it will grow into. Be aware, though,
that often times, the vision can change the personality and the deep thinking of an entrepreneur
into the next different level. In later chapters, we discuss how this change requires open-

mindedness and a willingness to adapt. The vision of an entrepreneur is considered as what the
company want to become in future. The vision of a entrepreneur is all about creating the
community which will be helping each other and strengthening communities. The business
model encourages homeless people to create short Miracle Messages through video, audio, or
text, with messages then uploaded to social media and other methods to find that person’s loved
one.(Zhou and et.al., 2020).
There are different approaches for developing the vision and business model which are
discussed below:
 Discovering the vision for the future to start with the end in the mind of an entrepreneur.
The vision for the personal future should allow for the necessary resources which can
support the ventures future, just as the ventures future will provide for the personal
future. it will discuss work-life balance later in the chapter to help you identify what
creates success as you describe your vision.
 Developing vision is the another approach which is considered by the Grab in order to be
successful in the market. This approach included the creative thinking process in the
business model. This type of thinking and the skills allows the individual to come up with
the new ideas Design thinking, brainstorming, and mind mapping are tools that you will
learn about later in the course. Although these tools may be familiar, there are specific
methodologies that can optimize their success in entrepreneurial situations. The
Brainstorming requires that participants who can create the ideas around the desired topic
without judgement. it is all about Being sure to write down thoughts so that it can return
to them later. Brainstorming is different from divergent thinking, which does not require
ideas to be associated with the identified topic. For example, in brainstorming on the
topic of helping the homeless population, it might come up with ideas such as finding
community food and housing, or providing free medical care. Using divergent thinking,
we would arrive at more diverse ideas, such as filming homeless people then uploading
the videos to a social media website to connect family members with the homeless
person(Dery, Sebastian, Iand van der Meulen, 2017).
To compete with a wide enough market, Grab companies require creativity and
innovation in creating products and ability to maintain consistency in supporting product quality.
One of the problems that Grab and Go-jek are facing is pick-up points. This can be an

opportunity for Grab. The download can upgrade map quality on Google Map so pickup is more
accurate than Gojek application. In line with being consistent with the quality of the product,
they must also be consistent with the price given. Price is one factor that is highly favored by
consumers. However, consumers could experience a drastic price increase. To resolve this
problem, Fetch can set the tariff provided.
Besides maintaining about the product consistency, the company Grab can improve
service quality. This is one of the services that customers demands in the fast running and
growing service by the organisation. Good service does not only come from Grab companies but
also from the drivers. The issue which is regularly faced by consumers is the person who is
driving the vehicle. The Poor attitude of the person and lack of knowledge in finding the right
directions of the trip route is the main cause for the customers. Grab is advised to improve the
system and the applicable SOP, so it can be very useful for drivers and passengers. If the
company cannot offer a lower price, then the company can provide good service to its customers,
which is a competitive advantage(Chege,. and Wang, D., 2020)

Critically evaluate the following statement: Grab’s success can be attributed to the successful
application of the “Blue Ocean strategy.” In your response, apply appropriate Blue Ocean
frameworks and tools such as Strategy canvas and value curves to compare Grab and its
competitors based on the critical success factors for the industry
Grab’s success can be attributed to the successful application of the “Blue Ocean
strategy.” this statement can be said yes it is very much true. The blue ocean strategy was
originated from the computer games giant in the form of the Ninetendo Wii. This strategy is
defined to a market for a product where there is no competition or very less competition. It exists
where there is potential of higher profits because of irrelevant competition in the market. Blue
ocean strategy is the simultaneous pursuit of differentiation and low cost to open up a new
market space and create new demand. It is about creating and capturing uncontested market
space, thereby making the competition irrelevant. It is based on the view that market boundaries
and industry structure are not a given and can be reconstructed by the actions and beliefs of
industry players. This strategy is a f9ve step process which is discussed below:(Papa, Santoro,
Tirabeni and Monge, 2018).
Choosing the right place to start and constructing the right Blue Ocean team for the initiative.
Getting clear about the current state of play
 Uncovering the hidden pain points that limit the current size of the industry and
discovering an ocean of non-customers.
 Systematically reconstructing market boundaries and developing alternative Blue Ocean
opportunities.
 Selecting the right Blue Ocean move, conducting rapid market tests, finalizing, and
launching the shift.
Hera business model can be discussed which is Canvas which has helped the Grab to shape its
entrepreneurial vision and business model. This model allows to carry out the high level of
business analysis without getting lost in the details. The best use of this model is to gather the
team leaders of different department such as marketing, sales, finance, operations and
manufacturing (Etzkowitz and Zhou, 2018).
The main competitor of Grab is Go- Jek which was founded in Indonesia. The two rival
companies are in a fierce battle for dominance in the region. They are constantly competing for
both investors and customers in areas ranging from transportation, grocery delivery, financial

services, and medical advice. Go-Jek tends to prefer partnerships through acquisitions, which
allow tighter control. On the other, Grab generally prefers partnerships and joint ventures which
have allowed it to reach out to more markets much faster, including a more competitive
advantage outside Indonesia. Another key player, Uber, which had invested over $700 million in
Assessment Brief: LSBM306 - 2021-22 Page 4 South-east Asia was acquired by Grab in March
2018. Grab acquired all Uber’s assets and operations including UberEats in Cambodia,
Indonesia, Malaysia, Myanmar, Philippines, Singapore, Thailand, and Vietnam. Uber gained a
27.5% stake in Grab from the acquisition deal, when the company had already been valued at
several billions of dollars. Uber was pushed out of the South-east Asia market and announced
increased investment in research and technology development in its core markets including India
where it holds majority control(Gardiner and Scott, 2018).
Grab has taken over the Uber ans it is the leading in ride sharing apps. Later in 2016, the
start-up was rebranded as Grab. Their ride-sharing service was available in Malaysia, Singapore,
the Philippines, Thailand, and Vietnam. They had also expanded into the food delivery market
with Grab Food which is a similar model to UberEats that allowed people to order meals from
restaurants partnered with them. The Singapore regulator ordered Grab to restore its pre-merger
pricing and told the service to remove exclusivity obligations on drivers and taxi fleets. The
ruling against Grab created opportunities for Go-Jek, which has committed over $500 million to
expanding in Singapore and other regional markets. As the rivalry continues, Southeast Asia
super-app industry is creating a marketplace in which competitive advantage will increasingly
depend significantly on each player’s distinctive resources and capabilities including the choice
of competitive strategies(Whittington, 2019).
CONCLUSION
From the above report it is concluded that an entrepreneur has a creative thinking and
mindset. As the world is changing at an incredible pace, fuelled by new technologies , innovation
management and creating new ideas in the business organisation. enterprise and innovation is the
aspect and important for an individual to study in their higher education to enhance their skills
and develop ideas that strengthen the business enterprises. Innovation is the concept which is
defined as the process that an individual or the business organisation undertakes to conceptualize

brand new products, processes and ideas or to approach the existing products and new ideas in
the new ways. The pu5rpose of the business innovation is the important aspect for the business
organisations which help in creating value of the enterprises. From the case study it is briefly
describes that Grab is Southeast Asia’s leading mobile technology and transportation company
that provides a range of on-demand everyday services including ride-hailing, food delivery,
grocery delivery, mobile payments, and financial services. Grab (originally known as MyTeksi)
was founded in 2012 in Malaysia, by Anthony Tan and Tan Hooi Ling, who both graduated from
Harvard Business School. The company started with a taxi-hailing app designed to improve
safety of taxi drivers and riders in Malaysia, but has since grown and established presence in 339
cities in 8 countries across South-east Asia. By focusing on a hyperlocal business strategy and
building strategic partnerships,

REFERENCES
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