Strategy Enterprise and Innovation Case Study

This case study on Grab Technology explores the key drivers of innovation, Porter generic competitive strategy, Ansoff matrix, and Blue ocean strategy. Learn how the company uses innovation to grow and thrive in the Southeast Asian market.

Strategy, Enterprise and
Innovation

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
Key drivers of innovation:...........................................................................................................3
Porter generic competitive strategy:............................................................................................5
Ansoff matrix:..............................................................................................................................6
Blue ocean strategy:.....................................................................................................................7
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Strategy, enterprise, and innovation are terms used to describe the abilities of a business to
develop and thrive. The use of creativity and attracting customers to the business is what
innovation in the firm is all about. In an organisation, strategy refers to the aims and objectives
of the organisation in order to attain and mobilise resources. The paper contains information on
Grab, a significant mobile technology and logistics firm centred in Southeast Asia (Grab, 2022).
Every day, the company provides a variety of requested services to its customers by developing
and advancing technology. Ride hailing, food, mobile payments, and other services are provided
to clients by the firm.This report also includes innovative tools and mechanisms for improved
corporate analysis, such as thought mapping. The strategy framework assists the corporation in
keeping its goal and business model in mind. This paper also offers the Blue ocean approach for
industry success.
MAIN BODY
Key drivers of innovation:
In general, the key drivers of innovation refer as an individual or group of people who
accelerate the new ideologies and innovation to perform any work activity which provides the
growth and development (Hamidi and Zandiatashbar, 2019). Likewise, the Grab has also been
supported by its different and various key drivers which are making the organization to grow
successfully. The Grab organization is also contributing in driving the innovation at development
which includes internal and external environment which are described below:
Internal Drivers
The internal drivers basically include the management, stakeholders, investors, employee and
other inner departments of the company. These are also known as intrinsic drivers of the
innovation which are putting their best efforts and making the innovation to enhance and provide
effective results to many of the companies. Thus, the organization Grab has also been able to
obtain higher success from the internal drivers of the innovation and making them to achieve
higher growth.
Management: The management is responsible or even contributing in accelerating the
innovation in the society. The Grab includes it’s all departments such as finance, customer
support and sales etc. The company always believes in providing the new design and innovation
to their products and services which is making the company’s growth at higher level. Similarly,

the Grab organization management is able to push the innovation at higher level and can enhance
when the stakeholder’s demands has changed which will make the management to enhance their
ideologies and innovation in the company (Chapman, and Hewitt-Dundas, 2018).
Employee: The employee is the major key driver of the organization. The company Grab always
focus on their employee satisfaction and benefits and providing them a positive culture to work
as the organization is having responsibility towards their employee too. Employee are the part of
the stakeholders and plays an important role in the company. Accordingly, when the employee
works and get opportunities to display their talent and knowledge at different departments makes
the innovation to build and also can improve the employee position higher in the company.
Investors: It is already known that investors are the important and essential source to run any
organization. The Grab also have the support of its different investors such as HSBC, Toyota,
Vertex Ventures, GGV capital and such more. These people are also able to accelerate the
innovation in the effective manner by observing and evaluating the Grab growth and
development and can decide to make the modifications in their policies and laws (Martinuzzi,
Blok, Brem, and Schönherr, 2018).
External Drivers
The external drivers include the outer surroundings people who is accelerating the
innovation in the effective manner. It includes the government, market demands, technology and
such more. Accordingly, the Grab organization is also affecting by its external drivers and able
to create the innovation in the definite manner.
Government interference: The government plays an important and major role in the
development of the innovation. It has been already known that government is accelerating the
growth if the innovation in many organization and industries at wide range. The government has
applied the technology innovation at the medical centres and hospitals which are very useful and
beneficial for the public (Mills, Zeng,and Fangyan, 2021). Even, the Grab is also having an
impact on their organization by the government interference if they change and modify any
polices and laws which will make the company to enhance their growth and able to achieve the
success.
Market: As, it is known that entire world is growing rapidly and making the innovation to grow.
Similarly, the Grab organization is also utilizing the technology and increasing the innovation in
the accurate manner. The company is providing the all requirements and needs of the market

which is accelerating the innovation in the definite manner. Market demand is a major key driver
of the innovation and making the company to grow effectively. As, the market people demands
increases they also accelerate the growth of the innovation and making the Grab organization to
develop in the effective manner.
Technology:The technology is increasing the innovation in its own manner. Thus, it is known
that nowadays the technology has been utilized by an individual person for the activities which is
making them to complete their work process accordingly (Gupta, 2018). This growing of
technology is making the innovation to grow and develop in the fruitful manner.For example, the
Grab is using the online platform to identify and fulfil all the demands and expectations of the
consumer from which they are able to enhance the innovation in perfect portion.
Porter generic competitive strategy:
Grab is one of the leading technology company who have innovative concept and wide
range of services which allow them to become competitive in the market, this company adopt
porter generic strategy to analyse their competitive edge. These are:
Cost leadership strategy: every business organization want to become more competitive in
highly competitive market, companies adopt certain strategies. Cost leadership strategy allow
company to reduce price of product and service and capture large area of market, reducing cost is
one of the most beneficial strategy but only can be possible is business do not concern about
their brand image (Firoz Suleman, Rashidirad and Firoz Suleman, 2019). Grab Technology
adopted this strategy to win rising demand of customer, this company reduce cost of those
service which are not performing well. Sudden reduction in price allow Grab to attract new
customer, keep price as low as possible is main purpose of cost leadership.
Differentiation strategy: differentiation strategy means business try to become more
competitive by developing innovative product, many business organization provide completely
different product from competitor with high quality, these product and service have ability to
attract wide range of customer. Grab Technology use differentiation strategy to introduce
innovative product and service, many innovative services of this company like ride hailing is
now able to attract customer. In this strategy, Grab only focus on keep their product and service
different from its competitors, they add new feature, functionality, creativity, durability and
innovation to their existing product.

Focus strategy: focus strategy means business only focus on niche market, many business
organization concentrate on understanding dynamic of niche market and unique demand of
customer in that particular segment. Focusing on these niche marker can be very challenging for
the business because this demand well specified product and service with low cost (Islami,
Mustafa and Latkovikj, 2020). Grab technology select niche market segment for their products,
this company focus on creating strong brand loyalty by provide high quality product at lower
cost. This strategy have two important strategy, these are:
Cost focus: cost focus is same as cost leadership which allow company to reduce cost and win
the competitive edge, but in cost focus, company focus on reducing price of product to a limit to
attract hidden customer of niche market. Grab technology avoid cost focus strategy because
bringing price as low as possible will impact their brand image.
Differentiation focus: this strategy allow company to completely focus on new customer
segment with innovative product, Grab Technology may adopt differentiation strategy for some
of their product but they do not adopt this strategy because serving innovative demand of niche
market can be very challenging for the business.
Ansoff matrix:
Every business organization focus on expansion, this allow company to increase their
branches all over the world. Expansion is one of the biggest dream of every firm, after becoming
successful in local market, many business focus to expand their business internationally. Grab
Technology can analyse expansion strategy, these are:
Market penetration: market penetration is one of the most common and used technique in
expansion process, in this strategy, company focus on existing market with existing products.
Grab Technology have adopted this strategy to increase their sales, market penetration process
allow Grab Technology to reduce price of existing product and service to attract customer in
existing market (Dawes, 2018). This company not only reduce price of product but adopt
effective promotional strategy and extra distribution efforts to meet the rising demand of
customer in these existing market. In market penetration and expansion process, Grab
Technology try to acquire small competitors to boost their corporate speed.
Product development: product development means business try to develop new product in
existing market, this strategy is very effective when business introduce innovative product. Grab
Technology introduce innovative service in existing market to capture greater market share, for

example; in 2019, company started “Grab for Good” campaign in which they partnership with
Microsoft, allowing them to introduce new innovative digital service in southeast Asia which
helped them to attract new customer and expand their business within existing market. This
company greatly focus on product development because this allow them to become industry ruler
of that particular country.
Market development: marker development means company try to enter new market with
existing product, this method of expansion is most commonly found in many multinational
companies who introduce their existing product in new market (Loredana, 2017). Grab
Technology enter new market with existing product and service but this company also modify
the feature of product to meet requirement of customer, when Grab Technology entered market
of South China, they introduce existing service with high level of modification and innovation.
Grab company enter this market with existing service like food delivery, ride hailing and
payment modes and successfully capture large market share.
Diversification: diversification means business try to enter new marker with new product, this
strategy is mostly adopted by those business organization who have great success in local market
(Omsa, Abdullah and Jamali, 2017). Grab Technology follow this strategy which allow them to
bring innovative product to enter new product, for example; when Grab decide to enter new
Singapore market then they developed complete innovative service, this company introduce
financial and management consultation service to attract customer of Singapore. This was new
product for the company which was introduce in new market, Grab had success with this strategy
and allowed them to generate surplus profit.
Blue ocean strategy:
Blue ocean strategy: The term "blue ocean strategy" implies to the use of distinctiveness and
low cost to generate new market space and demand. For instance, the company began with a
taxi-hailing app aimed to increase the safety of taxi drivers and customers. This also assists the
organisation in maintaining its market competency. This approach is also based on market and
industry limits. Essentially, in a blue ocean, the demand for the services that a firm provides to
its clients is lucrative, and its growth is rapid (Leavy, 2018).
Strategy canvas: Chan Kim and Renee Mauborgne created the strategy canvas and identified it
as a core diagnostic tool for organisations. The horizontal axis in the accompanying graphic
represents the variety of aspects in which the firm competes and invests. The strategy canvas

enables a corporation to view all of the factors in a single image. That identifies what services
consumers obtain and the business's primary rivals, as well as variables on which companies
compete with their organisation, for example; mobile taxi booking application.
Grab develops its strategy canvas by identifying rivals such as Go-Jek. This procedure is
completely dependent on the type of the firm. When a corporation identifies its customers, it is
critical that it also identifies the challenges that develop within the organisation. In Singapore,
for example, Grab's purchase of Uber provoked controversy among drivers, who claimed that the
merged firms cancelled their incentives, and passengers, who complained about the company's
poor service. Determine the competitive factor, which identifies the company's target clients. The
organization should communicate out more about the services it provides to its customers in
order to get market awareness. To fight with opponents within the company, competitiveness
assessment is also required.
Value curves: Value curves assess the value of a company's products and services inside the
business. This tool depicts visually how a corporation creates a new marketplace and offers
services to the customers they have targeted. The value curve from the blue ocean approach
serves two purposes in terms of structure. First, it depicts the organization's existing competitive
market. Go-Jek, for example, is a rival of Grab in Singapore and Malaysia. This also refers to
rivals, who highlight where corporate competitors substantially spend and where their products
and services actually occur and are situated in the marketplace. Secondly, in blue ocean strategy,
the value curve determines the particular market where rivals do not exist (Vieira, E.R.M. and
Ferreira,2018).
Six path framework:
Too much competition block growth of business organization, strategies of competitors
obstruct pathway for company. Heavy competition build boundary which need to be break, Grab
have their own competitive strategy which allow them to break walls of these competitive
boundary, this company use blue ocean strategy to survive in market. There is six path
framework in blue ocean strategy which allow company to formulate effective competitive
strategy, these are:
Alternative industry: blue ocean strategy state that every business organization should look for
alternative industry to sell their existing product, it is very clear that there is no limitation in
entering new industry with existing product (Agnihotri, 2016). Many successful companies leave

their main industry and look for alternative one where competition is not very high. Grab can
look for those industry which welcome similar product and have less competition, there are
various industry where demand is high but supply is less because there is no company to fulfil
these rising demand. This industry may have different function but purpose remain same.
Look across strategic group: choosing strategic group is one of the best strategy to overcome
heavy competition in the industry, in every industry, there are many groups who have similar
strategy and work together to generate surplus profit. Grab can look for these strategic group
who work on two dimension; price and performance. These strategic group have their own
assumption for buyer’s need and behaviour, Grab need to analyse which group offer more
effective strategy. Apart from this, Grab can identify the customer group with examining
activities of these strategic groups.
Buyer groups: every industry have various group of customer which have their own taste and
preference, income, spending capacity, market information and bargaining power. These buyer’s
group work collectively and influence buying decision of these other, Grab can target one of
these group to sell their product (Alam and Islam, 2017). Although, targeting these group is not
is easy task because buyer preference is highly influence by decision of other which means if one
buyer do not like the product of Grab then they can influence other buyers as well. Ocean blue
strategy allow Grab to examine chain of buyer.
Complementary offering: complementary product and service offer means business try to
examine the behaviour of customer before, during and after consumption of product. This
method in blue ocean strategy allow company to offer complementary service to customer if
there product fail to satisfy the need. Grab have to provide complementary service to guest if any
of their product or service is not meeting the demand of customer, this will improve brand image
and increase brand loyalty towards customer. Apart from this, Grab can analyse competitive
advantage while providing complementary service to their customer.
Functional emotional orientation: this strategy means business try to focus more on emotional
area of customer, sometimes business get competitive advantage in the market because they
exactly target emotion of customer. Grab can target emotion of customer to become more
competitive but playing with emotion can become very problematic for company because if
customer understood this strategy then not only brand value will come down but company have
to face criticism in the market allowing their competitors to become more success. Some product

are connected with the emotion of customer, Grab need to be careful while addressing this
strategy of blue ocean (Au and Tucker, 2018).
Look across time: many business organization fail to catch current trend in the market which
impact their positioning. Quickly responding to trend is one of the best way to become
competitive. Grab need to critically examine current trend to catch them and develop products
and service accordingly, this will allow them to become competitive in the market of blue ocean.
CONCLUSION
The report has concluded the various aspects of the strategic enterprise and innovation. It
is known that innovation is the major activity and ideology which is making the entirely world
growth at successful position. Innovation is putting the best results to an individual life and even
over all world. The report has mentioned all the areas of the innovation which is putting the great
impact on the Grab organization. This organization is obtaining and accelerating the all
components of the different ideologies and innovation and making the perfect growth and
development.
At first, this report has mentioned the key drivers of the innovation which is putting the
positive effect on the Grab and making them to win the market and public demands. These
drivers plays an important role in the Grab organization accelerating the growth of the new
ideologies and innovation. By using the accurate and suitable strategy the report has involved the
Grab organization entrepreneurial vision and mission from which it can be able to understand the
company defined growth. In addition, with the help of blue ocean strategy the Grab has been able
to attribute the success in the surrounding or market and makes them to achieve higher growth
and productivity.
This strategy helps the organization to understand the competitive company growth and
their methods from which the Grab can enhance their organization methods so that they will be
able to obtain high outcomes. It has been studied that the organization has contributed their
efforts in various components to increase the innovation from which they are now able to
compete with the rivalries and can obtain higher growth and productivity.

REFERENCES
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Chapman, G. and Hewitt-Dundas, N., 2018. The effect of public support on senior manager
attitudes to innovation. Technovation, 69, pp.28-39.
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generic strategies in pure online firms: A case study approach. Strategic Change, 28(3),
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Gupta, A.K., 2018. Scientific Temper and Innovation: Key drivers for India’s Economic
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Islami, X., Mustafa, N. and Latkovikj, M.T., 2020. Linking Porter’s generic strategies to firm
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Martinuzzi, A., Blok, V., Brem, A., Stahl, B. and Schönherr, N., 2018. Responsible research and
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Mills, E.F.E.A., Zeng, K., Fangbiao, L. and Fangyan, L., 2021. Modeling innovation efficiency,
its micro-level drivers, and its impact on stock returns. Chaos, Solitons & Fractals, 152,
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Vieira, E.R.M. and Ferreira, J.J., 2018. Strategic framework of fitness clubs based on quality
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Online
Grab, 2022. [Online]. Available through; <https://www.grab.com/sg/>