Detailed Report: GRAB Car's Business Strategy in Taiwan Market

This report analyzes the potential for GRAB Car to enter the Taiwan market. It begins with a memorandum outlining the opportunities and risks, emphasizing the importance of understanding local culture, business practices, and regulations. The report details GRAB's proposed strategies, including providing quality customer service, leveraging its customer base, and catering to diverse customer needs. It also examines the political, economic, socio-cultural, technological, environmental, and legal factors influencing business in Taiwan, highlighting the competitive landscape with UBER and local taxi operators. The analysis identifies candidates, competitors, and business partners, and recommends a market entry strategy, including discount pricing. The report concludes that Taiwan presents a golden opportunity for GRAB, given its market size, industry-friendly environment, and potential for revenue generation. The report also references several sources to support its findings.

Running head: ASIAN BUSINESS MANAGEMENT
Asian business management
Name of the student
Name of the university
Author Note:

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Memorandum
To:
From:
Date:
Subject:
The purpose of this particular memorandum is to draw your attention to the fact that your
app cab company, Grab is planning or is fully prepared to enter the Taiwan market in just a few
days. This memorandum will serve as a detailed guideline to your firm on the risks and
advantages that Taiwan market possesses for the company (Ang, Benischke, & Doh, 2015).
It has been a long time that GRAB has started its operations in South East Asia and has
become one of the leading names in the world of Taxi. However entering Taiwan to carry
business is not that easy as it seems. The market is controlled by China and a business
organization must have a clear knowledge about the local cultural, business and the policies and
regulatory norms of the mentioned place and international remittance systems are highly
developed and offer a vast range of investment opportunities for different organizations.
GRAB’s entry into the Taiwan is thus much easier. However the following research has been
quite effective to project Taiwan as a happening place to carry on business.

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Strategy of Grab Car in Taiwan
Some of the strategies adapted by GRAB car in Taiwan are as follows;
1. Providing Quality Customer Service- The app cab taxi service has the aim to provide a
safe, hassle free and speedy taxi ride to any of the passengers who avail the services of
the following taxi brand (www.export.gov/article). The safety measures are taken well
care of as the driver’s details, address, phone number, emails, past history of the
organization are checked thoroughly and then only the assessment is done. The
passengers have also a SOS button in their mobile app which they can press if they feel
that their safety is being violated and they can also rate their driver based on their
experience. The mentioned App Cab service providers provides quality service to the
customers and standing out from the rest of the providers offers the customers with both
cash and card payment options.
2. Utilizing the Large Customer Base- The large customer base of the following
organization will help them to allocate the best possible resources to make their app cab
company the largest in Taiwan and ensuring the greatest chunk of profit in Taiwan
(www.doingbusiness.org/data). Instead of building a new app the company has
integrated Grab car with the latest mobile app for pulling different customers under its
fold. The current users have the option to select the Grab car service if they are not able
to catch the taxi.
3. Catering to the needs of the individuals- Grab car provides different customers with
different offers. The presence of luxury limousines and BMW’s are useful to carry VIP’s
and luxurious people. There are also provisions for normal cars and buses. The

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arrangement of large cars like buses is meant for families or any other groups with large
customer demand.
4. Understanding the Market- The management of the company aims to understand the
market of Taiwan in a better way that will help them easily formulate a strategy and
implement them in the business to achieve success (www.doingbusiness.org/data).
Different factors influencing business in Taiwan
The aim of the project was to determine the market of Taiwan. It was seen that UBER has
a large share of the taxi market along with some local taxi operators. Taiwan market is slowly
becoming liberal after some vast and significant changes that have been undertaken by the
Chinese Government in the recent years. The liberalized approach of the government coupled
with a wide range of opportunities has transformed the business scenario of the mentioned
country. The presence of UBER and some other app cab companies will also help GRAB to
enter into a competitive market and make a good name with the services that it provides.
However the main reason for which GRAB is highly recommended to enter the Taiwan market is
its special luxury services that include vast range of super luxury fleet of different imported cars
used to escort VIP’s and other dignitaries. The research was conducted by staging a few
interviews with the service users and some of the drivers of UBER to get a clear and transparent
view on the popularity of the mentioned taxi operating company and its success factors.
Political Analysis- Political Environment of the mentioned country has seen a plethora of
changes. After the change of the Government in the country there has been some serious
changes in Taiwanese political environment (www.export.gov/article). The country is slowly
moving towards a democratic system. The liberal approach of the government of Taiwan has

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been slowly increasing and companies are finding it much easier to carry on business in the
country. Many companies are opening its branch offices in the company which is considered
as an recognized office and is subjected to paying tax based on the policies and rules of
Taiwan.
Economic Analysis- As mentioned in the political scenario the country is also experiencing a
sea of change in the economic sector. The average earnings of every single household have
seen an increase which implies to a better standard of living. The unemployment rate is much
lower compared to the other countries of Asia. Earning a decent source of livelihood helps
the people to have a strong purchasing power.
Socio Cultural Analysis- Taiwan comprises most of the people from China and thus their
social and cultural activities are much similar to that of China. There are both Chinese firms
in the market and some other Asian firms that enjoy a quality brand loyalty in the market.
There are also different western firms in the market which helps Taiwan to have a feeling of
the western goods (www.doingbusiness.org/data).
Technological Analysis- Technology plays an important role in the success of the firms in
the market. Taiwan has a standard set of Technological infrastructure that cater to the needs
of the company easily. Presence of high level of mobile, internet, television related activities
have been useful for the success of the companies in Taiwan.
Environmental Analysis- The companies that try to operate in Taiwan have to comply by the
major policies and procedures to make sure that the activities of these companies and
organization have little or no impact to the environment (www.grab.com). The waste

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disposal control act, Pollution control act are some of such laws that are quite effectible for
the companies.
Legal Analysis- As said earlier the companies are charged taxed once they establish their
business in Taiwan. The companies that do not have a head office in Taiwan but derive
different resources from the mentioned country can be charged with the actual corporate
income.
Candidates, Competitors and Business Partners
The candidates, competitors and business partners of the company must be chosen in
advance to make sure that the organization must not face any hiccups while starting its operation
in the country.
CANDIDATES Drivers, operators, technicians and other
people related to maintenance
COMPETITORS UBER, GO-JEK
BUSINESS PARTNERS Stakeholders, Investors
The identification of the local stakeholders, competitors and the business partners needs
to be done in tandem to identify the business opportunities in the presence of other similar
brands. The presence of UBER and GO-JEK poses a potential threat to the organization. UBER
in special is a tough nut to crack as it already provides a huge competition to the mentioned
company. It is highly recommended for GRAB to enter the market of Taiwan as because the

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market offers exactly the same requirements as demanded by the app cab company. The absence
of too many app cab services, capability to provide luxury car services and the huge market of
Taiwan are reasons enough for the company to start business in this part of South East Asia. It
can use some tactical marketing strategies to begin its operation. At the beginning only they can
use discount pricing strategies to enter the market and establish a foothold in the market. The
discount pricing strategy will be helpful to attract customers of Taiwan who avail cab services
(www.export.gov/article).
Recommendations
The detailed analysis of the report has shown the capability of GRAB in providing app
cab services and luxury car services in different markets of the globe. According to Wang &
Lestari (2013) the presence of a large number of Vehicles will help the organization to capture
the market easily whereas the presence of a large number of investors will boost the management
of the organization to make sure that they do not face any shortfall in funds. The industry
standard and the government rules in the country are standard and can be said to be company
friendly in nature. The policies and regulations are equally friendly which will help GRAB to
smoothly carry out the operations in the new market. On the other hand the presence of large
number of fleets in their ranks will help GRAB to attract more customers easily at a given time.
The management of the company has been testing the commercial use of electric cars which
would help them to sustain in the coming future (www.grab.com).
Therefore it can be said that it is one of the golden opportunities for GRAB to enter the
Taiwan market as because South East Asia offers a huge round of scope for emerging companies

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like GRAB to earn huge revenues (www.doingbusiness.org). The following report points to a
positive feedback for the management of GRAB to consider its commencement of operations in
the mentioned Chinese territory. The political, social and technological factors of Taiwan has
multiple opportunities is quite industry friendly and will pose no such problems for the beginning
of the operations of the app taxi operator in Taiwan. The commencement of commercial
operations will open the gates for GRAB to try other potential markets of Asia and expand its
business boundaries gradually.

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References
"An Analysis Of Taiwan’S Distribution System | International Journal Of Retail & Distribution
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11 Nov. 2017.
"Doing Business In Taiwan, China - World Bank Group." Doingbusiness.org. N.p., 2017. Web.
11 Nov. 2017.
"Drive Or Ride With Uber In Taipei." Uber.com. N.p., 2017. Web. 11 Nov. 2017.
"Ride Hailing Platform: Car And Taxi Booking | Grab." Grab SG. N.p., 2017. Web. 11 Nov.
2017.
"Taiwan - Market Entry Strategy | Export.Gov." Export.gov. N.p., 2017. Web. 11 Nov. 2017.
N.p., 2017. Web. 11 Nov. 2017.
Wang, K. J., & Lestari, Y. D. (2013). Firm competencies on market entry success: Evidence
from a high-tech industry in an emerging market. Journal of Business Research, 66(12),
2444-2450.