Grab's Success through Innovation and Blue Ocean Strategy

This article discusses the key drivers of innovation contributing to the success of Grab, including SWOT analysis and Porter's strategy. It also covers the different approaches undertaken by Grab to help shape its entrepreneurial vision and business model, and how Grab's success can be attributed to the successful application of the “Blue Ocean strategy.”

Strategy Enterprise
and Innovation
1

Contents
Strategy Enterprise and Innovation.................................................................................................1
Contents...........................................................................................................................................2
INTRODUCTION...........................................................................................................................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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INTRODUCTION
The procedure by which a business presents new thoughts, workflows, methods, services, or
products is recognized as business innovation. Successful invention allows adding value to the
company and improving earnings; if an innovator is not innovating in a well manner, then their
company will stagnate. Staying ahead of the competition requires innovation. The goal of
innovation is to think of something new and technologies that drive growth and produce more
production and profit from the similar amount of resources. Grab is taken as a base firm
according to the given case study which is a leading mobile technology and transportation firm
that gives a variety of on-demand daily facilities. Anthony Tan and Tan Hooi Ling, both Harvard
Business School graduates, launched company in Malaysia in 2012. The firm began as a taxi-
hailing app in Malaysia, with the goal of improving the safety of taxi drivers and users, but it has
already expanded to 339 cities in eight Southeast Asian nations (Territories, 2021). This file
covers appropriate frameworks like SWOT analysis to identify the key drivers of innovation,
porter’s strategy to identify business unit and corporate level. This will also cover blue ocean
strategy and strategy canvas to compare Grab and its competitors.
Key drivers of innovation contributing to the success of Grab.
Inventions help everything in a variety of ways. They facilitate their duties, engage people,
expand the knowledge about the world, and also save life. Innovations assist the business or
company stand out from the crowd; they make you one-of-a-kind and distinct, offering you a
competitive advantage when customers shift to new product. Businesses, mainly in rising
nations, advantage from innovation because it allows them to keep on upper of endlessly altering
problems. More customers and a bigger market share may be increased by innovation.
Innovation also makes things simpler to expand their firm, regardless of its size or nature. Users
may have a small firm, but with invention, there are many more opportunities for growth. Being
innovative and unique in their work and having is what innovation is all about. Every company,
individual, and item aspires to be thought of as creative, but what distinguishes real innovation
from the rest is the concept of improvement. Innovation is nothing more than a narrative told for
the purpose of telling it. Innovation aids their development and contributes significantly to
economic progress. Companies, mainly in emerging nations, advantage from innovation because
it allows them to preserve on topmost of regular altering problems. More customers and a larger
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market share may be gained through innovation. Invention also makes things simpler to enlarge
their firm, regardless of its scope or nature. Users may have a little firm, but with invention, there
are many more chances for development. Being innovative and unique in their work and having
is what innovation is all about. Every company, individual, and item aspires to be thought of as
creative, but what distinguishes real innovation from the rest is the concept of improvement.
Innovation is nothing more than a narrative told for the purpose of telling it. Innovation aids their
development and contributes significantly to economic progress. Though hazardous, initial
expenditures in research and development might prove to be incredibly advantageous and yield
significant dividends, even after the patent term has expired. Though breaking into the market
may appear to be a monumental endeavour for many start-ups, the core of the start-up culture is
to innovate and ideate in order to improve the user experience over time (Mengya, Taihua and
Chen, 2021). Efficiency, total productivity, and profitability are all improved through
innovations.
4 P's of innovation is a framework for discovering the invention area, describing the route of
invention, and assigning resources to it. To live in professionalism, every organisation must be
innovative, but those that accomplish a long-term competitiveness must be creative in all four
areas.
Product Innovation:
Product innovations refer to modifications to the startup's or organization's product or service
offerings. A modification in the design of an existing product, as well as a complete overhaul of
the product or service, are examples of product innovation. It is significant because it aids in the
creation of fresh places in a market that appears to be saturated. In case of Grab, users must
discover these gaps and create innovative ways to target their customers in order to fulfil them in
a unique way. Product innovation does not always imply the invention of a brand-new product
that addresses a brand-new need in the Grab.
Process Innovation:
The innovation environment has shifted as a result of variables such as competition liberalisation
and deregulation, globalisation of markets, rising customer demand, and technological
advancements (Kuo and Smith, 2018). This resulted in a shift in the manufacturing process
within businesses. Process innovation refers to innovations that assist businesses in harmonising
their processes in a customer-centric manner to achieve long-term success. Process deliverables,
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process flow, process management, and technologies are the four aspects that make up a process.
The manufacturing process is modified in response to market and technological developments. A
process-oriented organisation like Grab has the benefit of being able to react to changes in the
business environment more rapidly. Grab has adopted digital with their processes, for example,
is a huge upheaval in the existing post-pandemic status quo. Digitalization had already begun in
recent years, but the epidemic accelerated it.
Paradigm Innovation:
Businesses are constantly altering paradigms, especially when they discover new profit-
generating areas. Paradigm Change in the company status quo causes a movement in the
underlying mental model, which is referred to as innovation. With the advancement of
smartphone technology, the majority of individuals began to consume data via their phones. In
context to Grab, it has adjusted to adapt to the newly established market, brands confronted a
shift in the paradigm of digital consumption. When it relates to the tech innovation lifecycle, it's
also known as crossing the chasm.
Position Innovation:
Businesses frequently target a certain audience at first, but then move to a different audience or
extend to a larger audience (Aquino, Lück and Schänzel, 2018). Repositioning is a big part of
positioning innovation. It entails delivering a product or service in a new market or with a
different focus. In relation of Grab, it has also repositioned itself by bring variety of changes in
its firm like Grab for Food. Changes in how a certain process or product is viewed or utilised are
also part of position-based innovations.
Various approaches undertaken by Grab to aid shape its entrepreneurial
vision and firm model.
A business idea analyses what they want in their business to be become, how it will appear, what
will drive it, and what cultural values should accompany it. Each businessman has their own
vision for the company's future (Waris, Sanin and Szczerbicki, 2019). A business's vision gives it
meaning and direction. Their vision will drive their decisions and help in identifying the short
and long-term objectives.
SWOT Analysis:
A SWOT analysis permits industries to get distinguishability into their present condition,
permitting them to better recognize and examine total occupational presentation. It permits a
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business to measure its strengths, which may support them better enter the market and
accomplish their goals. It enables them to capitalise on their strengths, right their weaknesses,
and lessen dangers. Before determining on a new scheme, conduct a SWOT Analysis to inspect
the administration's condition.
Strength:
These are features that set a firm apart from its participants. A SWOT analysis may aid exposes a
firm’s unique selling proposition, which helps as the basis for the internal strengths and
preserves it above of its competition in the industry. In case of Grab, they offer a reliable and
safe transport system. Grab allows only certified drivers and automobiles to serve for them. It is
a number one online food delivery, digital wallet expense class and wide spread network of 400
cities with millions of partnership.
Weakness:
Identifying these can assistance in the recognition of ranges for development. As a result,
companies may plan approaches to right and manage their weak areas, permitting the firm to
prosper. Weaknesses stop an administration from reaching its full possible. They are parts that
the firm must improve for staying competitive (Dunn, 2020). In context to Grab, the incentives
offered by Grab to drivers are minimal. From time to time, there are system issues. Booking is
difficult during peak hours, which is the firm's major flaw.
Opportunity:
External elements that may give a strategic advantage to a firm are denoted to as opportunities.
These are exterior fundamentals that are open to the organisation and may be used for its profit.
To be capable to violently exploit marketplace potentials, businesses must have a keen eye for
classifying and examining present forecasts. In relation to Grab, the usage of
electric/rechargeable automobiles to eliminate pollution contributions. Consumers are fluctuating
to or stabbing with Grab as problems with motorbike welcoming facilities like authority and
security. Exterior problems like poor community transit, an absence of parking spots, and
increasing customer affluence might increase Grab's profits. Rising demand of contact less
payment and online delivering will improve the revenue from the selected organisation that is
GrabFood and GrabPay.
Threats:
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Threats contain everything that can have a bad effect on their business from the external, such as
supply-chain problems, marketplace changes, or an employment lack. Forestalling dangers and
winning achievement against them is dangerous before they become a target and business
progress stagnates. In case for Grab, The introduction of various ride-hailing apps, Problems
with local governments can result in penalties and the enactment of new legal requirements that
may have an impact on the business (Lorenzo, Rubio and Garcés, 2018). Low profit margins
have an impact on drivers, which may deter young drivers from entering Grab.
Porter’s strategy:
Porter's competitive tactics provide a crucial blueprint to success for businesses of all sizes.
Organizations may take the initial steps toward developing a better position in the market by
basing the main aspects of their strategic plan on one of Porter's methodologies. Michael Porter's
frameworks describe how businesses may outperform their competitors. The firm's exclusive
method to competence, and also the competence benefits on which it will be built, are described
by schemes. Differentiating one's actions from those of competitors, or executing comparing
things in various ways. According to Porter, a company can single overcome participants if it can
shape a supportable benefit (GIUGNI, STOTT and VONA, 2018). It must either give more
worth to consumers or give similar worth at a cheap price, or both.
Cost Leadership:
The objective of a cost leadership strategy is to accomplish a competence benefit by cutting
costs. Grab Discovering New Frontiers for Development in the Southeast Asian Sharing
Economy's major general approach in multiple consumer sectors is cost leadership. Grab
Noticing New Frontiers for Growing in the Southeast Asian Sharing Economy may utilising this
method to increase market share by concentrating on the middle class, which accounts for the
most of the whole shopper market mix in greatest nations. The rating problem is often very
significant to middle-class customers, and cost leadership is greatest choice for assembly their
demands.
Differentiation:
Another frequently using generic way for gaining a competence edge is differentiation. For attain
development objectives, Grab Determining New Frontiers for Growth in Southeast Asian
Collaborative Consumption employs difference in conjunction with cost leadership approach
(Jia, Nam and Chun, 2021). The strategic goal of implementing this approach, Discovering New
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Frontiers for development in the Southeast Asian Sharing Economy, to distinguish by integrating
innovation and address customers' rising health concerns. Grab Discovering New Frontiers for
Development in the Southeast Asian Sharing Economy utilises a different generic method to
make its commodity offers stand out and be dissimilar from the rivalry. The company utilises
uniqueness as a method to ease the burden from other brands as it is a recognized branding with
a hard foothold.
Focus Strategy:
The third broad competence plan needs industries to focus their assets on growing tightly
demarcated parts. When organisations utilise the centralized authority, they mark certain
segments of the market and utilise field advertising to advance a cheap advantage (De Giovanni
and Cariola, 2021). Grab Realising New Frontiers for Development in the Southeast Asian
Sharing Budget studies its labelling tactics and introduces constant modifications in commodity
branding to meet consumers' emotional potentials and optimise worth for the cash by
concentrating on product qualities.
Grab’s success can be qualified to the fruitful claim of the “Blue Ocean
strategy.”
Blue ocean strategy is the search of distinctiveness and less price at the similar period to create
new marketplace space and request. It's all about safeguarding unique marketplace and rendering
the participants obsolete. It is based on the idea that market restrictions and trade assembly are
not set in stone and may be re-formed by business members' thoughts and behaviour. To signify
entire of the industries that do not occur now - the unused marketplace area that is free of rivalry.
Demand is formed instead of battled over in blue waters. There is sufficient area for both
profitable and fast growth. Competition is empty in blue waters since the laws of the game are up
till now to be recognized. The term "Blue Ocean" is used to direct the massive, unused possible
of unused marketplace zone. In case of profitable development, a blue ocean is wide, bottomless,
and tough.
Despite having a long-standing position in the taxi sector, Grab has outgrown every other firm by
revolutionising the market. Rather of competing inside the present business or trying to giveaway
customers from taxis, Grab formed an unconcealed marketplace area that reduced taxicabs out-
dated. Grab made a blue ocean by changing non-consumers into reimbursing customers. Demand
is created instead of struggled over in blue waters.
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This results in both profitable and quick expansion. Unlike localised cabs, which may be
unpredictable in several spaces, Grab let’s to instantly plan a journey using the phone, time lag
for it, and then compensate through the application or money. This role creates roaming easier
for outsiders as they don’t have to concern about taking an illegal cab. Grab's CEO and co-
founder Anthony Tan said the two businesses' experiences in meeting Singaporeans' daily
necessities, along with their information ideas and strong tech skills, offers them the opportunity
to establish a digital bank that would enable even more consumers to take responsibility of their
income.
Strategy canvas tool is used in the Blue ocean strategy for the success factors for the Grab.
The strategy canvas serves multiple purposes: it depicts the current state of play in the known
marketplace range, allowing workers to understand variables, on which Grab focuses and spends,
and also what purchasers get and the tactical characteristics of the key players.
The strategy canvas is essentially a pictorial depiction of how corporation will build a blue ocean
scheme (Bashuri and Bailetti, 2021). It's used to see how present competitors of Grab participate
in an assured marketplace segment, what variables they contest on, and how their business and
the rivalry rank on every vital element.
On the strategy canvas, the horizontal axis signifies the variation of principles on which Grab
contests and devotes, whereas the vertical axis signifies the quantity of contribution that
consumers get across entirely of these important competitive features. A value curve, also called
as a planned outline, is a visual image of a Grab comparative presentation in context to the
fundamentals of competition in its business. The strategy canvas permits the Grab to see all of
the variables that a business participates on and participates in, as well as what buyers obtain and
the tactical outlines of the topmost participants, in a perfect image (Abdu and Jibir, 2018). It
demonstrates how alike the performers' methods seem to customers and the way they are driving
the marketplace towards the red ocean. Prominently, it establishes a shared baseline for change.
The scheme canvas serves two drives:
 It releases the current state of production in the predictable marketplace range, permitting
operators to understand the essentials, on which a Grab focuses and capitalizes, and also
the welfares that purchasers get and the tactical characteristics of the important
companies.
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 It inspires workers to take stroke by changing their importance away from rivals and
toward substitutes, and also from business customers to non-consumers, and it aids Grab
to imagine how a blue ocean strategic move varies from the present red ocean reality.
Compare Grab and its competitors
Basis Grab Uber
Ratings Grab only permits consumers
to rate drivers.
Uber permits both consumers
and drivers to give ratings.
Wages GrabCar has a set fee base, so
users won't be surprised when
they reach at their location.
Along with a non-refundable
deposit, Uber pays clients
depending on distance and
duration it takes them to go.
Pricing Strategy Grab use predatory pricing as
part of their battle strategy.
This indicates that
corporations set the price of a
service (such as
transportation) lower than the
Uber has started to raise
pricing for customers who it
believes will be prepared to
pay increased expenses not
just when demand exceeds the
amount of possible drivers,
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seller's marginal cost (Váchal
and Straková, 2019). The
businesses are capable of
keeping customer ride
expenses down while
increasing the price for
reduced services as a result of
this.
but also when sales exceed the
amount of possible drivers.
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CONCLUSION
It is concluded from the above report is that Open innovation isn't a new concept. Innovations are
always freely produced between companies and across borders. Businesspersons with the need,
purpose, and vitality to solve problems and make new companies are positive. Participate in new
trade activities. To distinguish corporate forecasts that will stop holes in the marketplace,
business owner necessities to be creative. Open innovation isn't a new concept. Inventions have
always been freely accomplished across associations and across limitations. The admiration of
exposed invention now stops from the detail that it permits them to increase entree to fresh
thoughts and the social links that have developed up around them, which was earlier unbearable.
The process of developing a product or service that adds considerable additional value to
customers. The process begins with client and market selection, continues with opportunity
discovery and prioritisation, and concludes with the production of a new product or service. They
have a good opportunity of responding to variations and determining new potentials if they
invent. It may also help in the growth of competence benefit by permitting them to make
improved goods and services for their customers. The purpose of innovation is to improve things
by an order of magnitude. Typically, innovation involves exploration, risk-taking, and ingenuity.
As a result, innovation goals may be more unclear than a normal corporate goal, which seeks for
definite and rapidly attainable results. Being innovative and unique in their work and having is
what innovation is all about. Every company, individual, and item aspires to be thought of as
creative, but what distinguishes real innovation from the rest is the concept of improvement.
Innovation is nothing more than a narrative told for the purpose of telling it. Innovation aids their
development and contributes significantly to economic progress. It aids in issue solving, which is
increasingly important as the world's challenges grow.
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REFERENCES
Books and journals
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Europe: Theory, Models and Practice, p.40.
Mengya, L., Taihua, Y. and Chen, H., 2021. Venture capital and internationalization of
enterprise R&D——A study of China′ s GEM listed companies. Science Research
Management, 42(6), p.1.
Kuo, T.C. and Smith, S., 2018. A systematic review of technologies involving eco-innovation for
enterprises moving towards sustainability. Journal of Cleaner Production, 192, pp.207-
220.
Aquino, R.S., Lück, M. and Schänzel, H.A., 2018. A conceptual framework of tourism social
entrepreneurship for sustainable community development. Journal of Hospitality and
Tourism Management, 37, pp.23-32.
Waris, M.M., Sanin, C. and Szczerbicki, E., 2019. Establishing intelligent enterprise through
community of practice for product innovation. Journal of Intelligent & Fuzzy
Systems, 37(6), pp.7169-7178.
Lorenzo, J.R.F., Rubio, M.T.M. and Garcés, S.A., 2018. The competitive advantage in business,
capabilities and strategy. What general performance factors are found in the Spanish
wine industry?. Wine Economics and Policy, 7(2), pp.94-108.
De Giovanni, P. and Cariola, A., 2021. Process innovation through industry 4.0 technologies,
lean practices and green supply chains. Research in Transportation Economics, 90,
p.100869.
Bashuri, E. and Bailetti, T., 2021. Strategies for a Small to Medium-sized Enterprise to Engage
in an Existing Ecosystem. Technology Innovation Management Review, 11(7/8).
Abdu, M. and Jibir, A., 2018. Determinants of firms innovation in Nigeria. Kasetsart Journal of
Social Sciences, 39(3), pp.448-456.
Váchal, J. and Straková, J., 2019. Enterprise architecture within the process of permanent
change. In SHS Web of Conferences (Vol. 61, p. 01029). EDP Sciences.
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Dunn, H.S., 2020. Creative resilience and globalization from within: Evolving constructs for
analysing culture, innovation, and enterprise in the global south. Annals of the
International Communication Association, 44(1), pp.4-18.
GIUGNI, L., STOTT, N. and VONA, R., 2018. A social enterprise in Gomorrah-land: a tale of
radical cultural entrepreneurship and social innovation management. In Extended
abstract presented at Sinergie-Sima 2018 Conference, themed Transformative business
strategies and new patterns for value creation.
Jia, L., Nam, E. and Chun, D., 2021. Impact of Chinese Government Subsidies on Enterprise
Innovation: Based on a Three-Dimensional Perspective. Sustainability, 13(3), p.1288.
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