LSBM306: Evaluating Grab's Competitive Strategies in Southeast Asia

This case study examines Grab's strategic approach to becoming a leading mobile technology and transportation company in Southeast Asia, focusing on its 'Grab for Good' initiative and competitive strategies. It analyzes the key drivers of innovation within Grab, including building a culture of innovation, reward programs, leadership enablement, and process infrastructure, emphasizing the importance of mastering the 'super app' concept. The analysis utilizes Porter's Five Forces framework to assess the competitive landscape, considering the bargaining power of buyers and suppliers, the threat of new entrants and substitutes, and the rivalry among existing competitors. Furthermore, it explores Porter's generic strategies, such as cost leadership and differentiation, and the Blue Ocean Strategy framework, which emphasizes creating new market spaces and rendering competition irrelevant. The case study concludes by highlighting the need for Grab to focus on cost strategies to enhance business effectiveness and maintain a competitive edge.

Grab for Good and more in
South east Asia

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Innovation key drivers contributing to the success of grab. .......................................................3
Different competitive strategies' framework. ..............................................................................6
Blue ocean strategy framework and strategy canvas model .......................................................8
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Grab organization is leading services for transportation and mobile technology which
provide the high range of on-demand services, include the grocery delivery, financial services,
ride hailing, food delivery and so on. The organization originally known as My Teksi, which is
founded in Malaysia, and they have started the taxi-hailing app designed for improving safety of
taxi drivers and riders. The company have also taken the super-app into market that lead with
having advantage that offers on-demand services millions of consumer every day. They have
also places the huge emphasis on inclusivity, safety, reliability in transportation, social impact
and so on (Grab For Good Fund to Benefit Grab Partners and Southeast Asian Communities,
2021). Later on, the organization has launched the 'Grab for good' social impact in partnership
with Microsoft and try to improve the digital skills and help them for developing with better
goals achieved. The grab for good programme that helps in opening new opportunities for digital
literacy and upskilling. On other hand, Grab which generally prefer for partnership and joint
venture that allow reaching out more market. The organization have also invested more in urban
and that acquires all assets and operation including various countries. Organization has huge
competition of Uber in Singapore, and also increasingly which depends on player distinctive
capabilities and resources that include competitive strategies.
MAIN BODY
Innovation key drivers contributing to the success of grab.
The importance of innovation to business potential and longevity w3hich hold the
economic growth and bring out the truly external perspective respond for the Grab organization.
Business by having the understanding need to work with innovation management imperative and
many investments in pursuit for competitive organization. A diagram which present the
organization with the role of drivers innovation and enabler of future oriented by potential look
prominence (Saqib and Satar, 2021). Grab organization business leader, need to be look more
forward instead of proven products and services. Here, the following key elements were
emphasized as essential driver of innovation value:
Built a culture of innovation-
Creative team and people need to part of culture innovation and this could also lead
support more about the individual and team creativity. While having such things, it might be

helpful for having research and experience that show about the main four dimensions of culture
innovation. It includes the processes, policies, climate and people. The Grab organization which
requires for support from four dimensions and usually, this play important role for developing
more brand value. Here are some ways in which the organization can develop the brand culture
of innovation: empower employee and providing more value in many ways, embrace the multi
faceted approaches to innovation and so on.
Rewards and subscription-
Reward programs which help for developing customer loyalty and Grab have also started
the offer points to spending more on app (Huang and Chen, 2022). The Grab organization have
also taken the use of proper redeem points or offering free grab bikes. Company also offer more
earning points, spending rewards points, understanding membership tiers and benefits. Through
having such things, this might be more helpful in keeping the customer for long term and also
ensure them for working with many new concepts.
Leadership enablement-
Leadership which is now really gets innovative, but widening the gap between practical
application and strategies intent. At the same time, the collaboration and organization pillar
which require for investing more in infrastructure, collaboration for innovation and support. The
development of innovation leadership, which is not getting attention it deserves in Grab
organization (Pinkse and Bohnsack, 2021). This might be also expected to staff innovate with no
support and widely adopted, open leadership styles enables growth and more general, this was
not consistently into effective innovation culture. Leadership innovation which seems to be more
growth and development for which organization is being required keeping focus on, empower
employees and executive management, create strong strategies' alignment, focus on process
enablement and adequate budget allocation.
Process and infrastructure-
Grab organization match more about their innovation with having support about the
enablement and results (Kee And et.al., 2021). Along with this use of separate innovation
department was evident of organization with surveyed now about innovation department shifted
with passive information management towards the active management. The organization which
is working with developing digital skills and collaborative innovation approaches and adopted
the strategies amongst those that performer well for involvement of external stakeholder and

ecosystem in Grab organization innovation process. Process and infrastructure which seems to be
important and this could also lead for performing the involvement of external and internal
stakeholder in organization within innovation process.
Organization mastered the super app-
The first stop app which keep satisfied a high range of daily services and ensure the
customer for keep the use of given super app. For Grab organization services that can include
such as paying bills, ordering food, even booking hotels, transportation and so on. In having such
thing this might be more keeping various factor key component that help for working behind the
success of both booking hotels and food (Hidayat, 2021). The organization provides many
benefits and functionally for working with its users from ever needs to close the app. In present
time, Grab app have taken much place as customer pay more and many of users in various
countries pay bolls, order food and send parcels all from the organization.
Key drivers of
innovation
Built a culture
of innovation
Rewards and
subscription
Leadership
enablement
Organization
mastered the
super app
Process and
infrastructure

Different competitive strategies' framework.
The porter five forces is the framework that require for understanding the competitive
forces for the Grab organization and drive the way economic value which is divided among the
organization:
Bargaining power of buyers-
This could be seemed that the Grab organization have huge amount of customer and
powerful profits. Buyer power that could lead with lower prices to increase the costs in adding
services, quality and features in order for selling their products and services. For example, the
company have invested more in Uber and this could make them creating the lower prices and
providing the high quality of services (Goyal, 2020). Along with this organization can also
exercise indirectly through having the decision with the end of customer.
Bargaining power of suppliers-
Where supplies are powerful, this could make larger profits margin than the Grab
organization. Along with this also involving the inputs several suppliers to sell at the end of
customer. The organization need to make more components to competitors and use them in
selling the own products. The grab organization which keep directly sells to customer and many
of suppliers which are being involved with biggest profits margin. Grab organization is also
facing high cost of competitor due to switching the suppliers, because this has benefits about
fleet compatibility and necessity of utilizing major online app.
Threats of new entrants-
Grab organization that makes the average profits will face the huge risk for entrants, and
they may either imitate with similar value proposals. It might be also led to having the
continually add for the original value proposal with having some ability to increasing prices
(Anastasiu, Gavriş and Maier, 2020). The organization has the fear for new entrants and this
could create the huge competition for them and reduce the prices in market.
Threat to substitute-
It is easier for the consumer to switch from the organization products and services,
because for having competition. The smart app become better before starting substitute for high
end of products which helps the organization for increasing amount of people. The more
products is differentiated and also have the unique value proposition, the more difficult more
about to find the substitute and for making price performance and also make the product's

availability in market. Grab organization sometime also help for increasing quantity provided
and changes the proper delivery time for their consumer.
Rivalry among existing competitors-
Competitive rivalry is highly familiar with the concept of many business and heavy
discount, innovative products, marketing campaigns and also providing the improvements. This
could be also important for expected with high level of rivalry and affect the profitability for
organization (Kordahi, 2020). Grab company, also have the prolonged competitors with having
innovation being harvested and industries with only a few of similar size of oligopolies.
Porter generic strategies
Having some basic strategies that could lead for crucial part of both long and short term
success. As Grab organization need strategies to run the organization when they have the place to
dictating how they proceed. The strategies the model with having the high level of concepts and
this could be having great level of variation in strategies among business and know about which
part need to be taken. Here are some components of porter generic strategies:
Cost leadership-
This is common business strategies, which is considered as organization try to gain an
edge on competition. Cost leadership means going to lead with market in controlling costs in any
another way or not (Vieira and Ferreira, 2020). Grab organization that can leas with best offer
products at lower cost, than convincing consumer to pick up the simple products and services at
least expensive products. This is right and simple way for selling products and services at the
lowest prices and keep sustain over the long term. Grab organization need to keep their products
and services prices which play the role for longer time and make sure for having the consumer
for long term.
Differentiation-
In many ways, the organization need to keep the different strategies which is exactly
opposite to the cost leadership option. The organization can also try to take over market from the
quality and functionality points, rather than simply trying to sell the expensive products and
services (Deshpande, 2021). Grab which sets the smart app in which they have make the
different pricing strategies and also have the great product to offer, as need for strong marketing
plan that buyer can easily buy them.
Cost focus-

This strategy in organization mainly keep focus on the specific market and organization
can also try to sell their small portion of the market with keeping focus on some unique products.
The company need to select the segment and then require to set the strategies through which they
can easily target the people. The firm that produce the market focus and have the lower volumes
of less bargaining power with their suppliers. Grab organization that succeed the focus strategies
are being able to having broad range of products development strength and also relatively with
having narrow market segment that are also known very well.
Differentiation focus-
The differentiation focus on strategies which is similar to cost focus and also having
expected about for going the work within the market. Grab organization also require for keeping
the focus on differentiation focus because this can make their competition less and make their
organization succession (SlavikHanak and Hudakova, 2020). As long as for working with
present consumer as something they are looking and justify with higher prices which may be
able to Grab organization in sharing the large share in market.
Justification- the organization basically need to keep their more working on cost strategies
through which they can easily make their business more effective. While having such things this
could also lead them within the proper implementation and make sure for having different price
for their products and services.
Blue ocean strategy framework and strategy canvas model
Blue ocean strategy which pursuit the differentiation and how the low cost for products
and services open in new market that create and space with new demand. The organization need
to about the capturing and creating market space and making the competition more irrelevant.
While having such things this could also view about that market boundaries and industry
structure are being not so given and can be reconstructed by actions and beliefs for the
organization. Blue ocean strategies which help for creating demand rather than fought over and
having opportunities for growth that is being both profitability and rapid (Carton, 2020). In blue
oceans, competition is irrelevant because it describes about the deeper potential which is found
the unexplored market space. As well as, this also keep vast, deep and powerful in terms for
having profitability growth and developments. Look across alternative company, grab for good
organization not only with firms but also produce the alternative products and services for their

company. The organization can easily open their digitally concepts with having the low cost in
booking hotels, food ordering or delivering products and services.
Thus, this also have the focus on key factors that could be required for buyers to trade the
buyer across having alternative option and by reducing everything, along with this, also help for
blue ocean for working with new market concepts. Look across strategic group of organization
within the industry and built up the dimensional, performance and prices. Grab organization have
selected not to complete with entry level of strategies with Uber in Singapore and organization
taxi drivers looked up the various factors for developing their sector in country. Look across
buyer group, in Grab for good organization competitors that could define about the common
definition in targeting the buyer and using their online app. However, they follow up the chain of
buyers who can directly or indirectly involved in buying decision: actual users can use their
products, intermediate who can play the role in decision, purchaser who pay for better products
and services (Ellinger And et.al., 2020). Look across time, this make respond about the point as
they are working with impacts and make sure for creating the reactive strategies which allows for
working in changing environment. The Grab for good organization that could be subjected to
external trends and have their affect towards the business within over time. The organization
should know about the trends which must be decisive to the business and have the clear
objective. In knowing about the trends in which products and service does the organization need
to keep focus this could keep them for working with high profitability and evolving more
customer utility.
The strategies canvas is central diagnostic tool and action of framework that captures
about geographically and the current strategies with the future prospects for organization. Grab
for good organization, which have the main competitors Gojek, based app which provide the
various services such as, takeaway food, financial services, ride hailing and deliveries so on. The
strategies canvas that make the capture for buying huge range factor that can be able for
investing and also offering the level that buyers across all of those key with competing factor
(Mustaniroh, Prabaningtias and Citraresmi, 2020). A value for creating the curve or strategies
profile organization need to make the better relative performance across, the various industry
factor and might be also including competition. This could be also seems that strategies curves
that allow Grab for good organization with having one simple picture and clearing about various
factor that can be invested and what buyers must be receiving. Moreover, this could also lead for

working with strategies profiles and creating the major player within the look to buyers and
reveals about how the driver the industry within the better performance towards the huge
working sector. The strategies which captures about the current states with the known market
value and also help Grab for good organization with developing competes and invests, what
buyer can receive and what strategies they are being require following (van Wee, Filius and Joo,
2021). The competitive environment which have the modern enterprise operate within allocating
resources and budget paying off. It should also keep the seeking, develop and protect new with
the competitors irrelevant. Hence, this could also help for creating competitive advantage that
could create more effective working and ensure them for working with some policies and
procedures.
CONCLUSION
From the above report it had been concluded that, the organization have make the proper use of
given framework and model through which this help them for working with strategies. Along
with this, also evaluated about the key drivers of innovation in which they can contribute more
about those activities which could help them for developing. As well as organization also
required for working with some better strategies and ensure the digitally skills with hiring the
best employee. The organization also being workers towards the different approaches and keep
them estimated about various effective role and play the effective concepts about the business
model. Firm which mainly make their focus towards the cost leadership strategies and keep them
for working with different cost so that could help the customer for longer stay. Moreover,
critically evaluated about the Blue ocean strategies, and strategies canvas which states about
what organization need to work and make sure for reducing the competition. Grab organization
which can also make the proper use of technology through which this could help the for creating
some better strategies. Therefore, the organization can keep the following about the various
effective targets and keep the growth for which they can easily work and have the proper
development. This could also state about that how usually the concepts must be clear and make
their framework for using in developing more business model.

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Online
Grab For Good Fund to Benefit Grab Partners and Southeast Asian Communities, 2021.
[Online]. Available Through : <https://en.prnasia.com/releases/apac/grab-announces-
grabforgood-fund-to-benefit-grab-partners-and-southeast-asian-communities-
314305.shtml>