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Bangkok school of management

Grab company

Chanmonyrotana Lay
INT 101
Ms. Theresa Blissing
Due date: 06th December 2019
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Table of contents
1. Grab company background and history
2. Grab SWOT and international environment challenge & competitive
3. Grab entry strategies
4. Grab market segmentation strategies
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1. Garb company background and history

Grab company was founded in June 2012 by the two founders Anthony Tan and Tan
Hooi Ling. It is a Singaporean multinational ridesharing company that offers a lot of
services by using the application which mean the consumers have to download the
application into the mobile phone and create an account according to the app need. Grab
operates in southeast and east Asian countries such as Malaysia, Singapore, Vietnam,
Thailand, Indonesia, Philippines, Cambodia, Myanmar, and Japan. Moreover, Grab
provide many services such as Grab taxi, Grab car, Grab emorgue, Grab bike, Grab hitch,
Grab express, Grab fresh, Grab pay, Grab food. People can register with garb taxi to
work for their service and the company makes money from cutting fees of the booking
but they also have hire their own company employee. In addition, Grab buy smartphone
for the driver in that country when they want to expand, and allow those driver to pay
back money time by time, it also educate those driver of how to use the smartphone and
application.
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2. Grab SWOT and international environment challenge & competitive

Grab is a Singapore based transportation network company. Apart from transportation

services it provides food deliveries and digital payment services. The operations of the
company are driven through private taxi riders and are influenced by the sharing system.
They have a robust system of contacting the taxi drivers directly without going through
the taxi company and hence with minimum agents is able to expand the business in
smaller cities. Grab has been increasing its user base and has today around 75 million
downloads. Grab has been entering different countries and he is operating in around 235
cities in the Southeast Asian Market. Internationally Grab expands through local drivers
by providing them with smartphones and track movements. Grab is a system where fees
are directly paid by the customers to the drivers and a booking amount cut is taken as a
commission by the company.
The strengths of the company are as follows:
 It has a high standard of service and reliability as it employs only verified local drivers.
 It is a low cost operating model as it provides only an aggregation of services coupled
with security.
 It has an automated booking and payment system which provides for lesser ambiguity
and the drivers also have their emoluments paid out directly by the customers.
 Robust infrastructure provides for business continuity and hardly any downtime.
The weaknesses of the company are as follows:
 The mechanism provides for no customer connect.
 The drivers are dependent on emoluments from the customer
 It is a low paying model and the company is driven by volumes
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 Expansion is a challenge as it is not the first model of its kind

The opportunities for Grab are as follows:
 Possibility of expansion in international markets
 Connect with customers and provide for preferable services
 Advance usage of technology to capture customer data and use for better marketing
 Provide for a dispute mechanism that can increase reliability.
The threats for Grab are as follows:
 Large competitors like Uber are a certain threat in expansion
 Drivers at times depend on customers for tips which can be harassing for the customers
 Non-Personal service leads to less switching cost for customers

3. Grab entry strategies

Grab Taxi, celebrated for its game-changing taxi-hailing mobile app, able to replicate its
success within the limo service arena. Many folks bear in mind the sheer frustration of
being placed on hold for what feels like Associate in Nursing eternity whereas attempting
to book a taxi through a center. Thanks to Grab Taxi‘s handy taxi-hailing mobile app,
that was launched in 2012, those days area unit long over. The app caught on quickly,
receiving one booking each eight seconds in 2013 Associate in Nursing an investment of
US$90 million in 2014 from US-based investment trust Tiger international, Hill House
Capital Management, Qunar, GGV and Vertex Ventures. Fast forward to 2015 – Grab
Taxi has old a substantial rate of growth. it's currently overseeing a mean of seven
bookings each second and a complete investment of US$340 million, the most recent
spherical light-emitting diode by SoftBank business firm. Riding on the success of its
app, it came as no surprise once Grab Taxi determined to expand its transport-hailing app
to incorporate limo services with the new Grab Car option. Here area unit four methods
Grab Taxi is using to make sure that Grab Car can hold its own among different premium
transport-hailing apps. Providing quality client service Grab Taxi is aware of the worth of
providing quality client service. With a core philosophy of providing “speed, safety and
certainty” to all or any its customers, Grab Taxi’s takes no half-measures, once it
involves guaranteeing that the rider rides in comfort. The driver’s details – name, sign,
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plate range – yet because the pre-determined fare area unit created on the market to the
rider to make sure complete transparency. Passengers also can rate the motive force
through “share-your-ride” over social media. this is still the motive force responsible and
ensures that the company regularly gathers feedback from their drivers and executes valid
propositions quickly, to enhance the expertise for each driver and rider. Unlike a number
of the competitors, Grab Taxi provides a lot of versatile payment choices, permitting
money and MasterCard payment. All these factors converge to create the passenger’s
journey a hassle-free one, and what higher thanks to build up a loyal client base than to
produce impeccable, stress-free service? Tapping into an oversized client base With over
three.8 million downloads, a mean of 620,000 users monthly and a position in six
Southeast Asian countries: Singapore, Malaysia, Philippines, Thailand, Vietnam and
Indonesia; Grab Taxi has a plus over its competitors by having the ability to faucet into
its giant pool of shoppers. Instead of building a separate app and having to draw in a
brand new whole base of shoppers, Grab Taxi has integrated Grab Car into its existing
mobile app so as to maximize its current client info. For example, current users have
choice| the choice} to pick out the Grab Car option if they're unable to search out a taxi.
New users drawn in by the Grab Car service will have the choice to book a taxi, transferal
in additional business for Grab Taxi’s taxi drivers. It’s a win-win state of affairs. Catering
to individual desires Grab Car provides a variety of limo services and vehicles for
passengers with completely different desires. For example, those that want to be
chauffeured in luxury will choose to travel in a very swank BMW 5-series with the Grab
Car+ Premium 4-seater possibility, whereas those that want to bring on their whole
nuclear family with them, will opt for the Grab Car 13-seater possibility. The budget-
conscious rider (especially those that need a ride however area unit unable to find a taxi)
will opt for the Grab Car Economy 4-seater possibility. Understanding the market Grab
Taxi’s distinctive position as a geographic region startup, suggests that it's a deeper
understanding of what methods and services add the region. it's able to attract major
investors like SoftBank business firm, a Japanese telecommunications and web large, to
take a position US$250 million (which is that the largest investment a Southeast Asian
web startup has ever received therefore far). additionally, Grab Taxi is simply targeted on
geographic region, therefore it will concentrate all its funds and efforts on the region. Its
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data of Southeast Asian markets permits Grab Taxi to launch promoting campaigns
which will attractiveness to every country. Grab Taxi has partnered with shopper brands
in geographic region like KitKat and Wonda occasional to promote its services. In Siam,
it even partnered with Air Asia by golf shot the Grab Taxi whole on the meal receptacle.
The ability to infiltrate Southeast Asian markets is additionally the results of Grab Taxi’s
strategy of hiring native talent WHO perceive the nuances of the market. it's additionally
established a US$100 million R&D center in Singapore to improve its services and reach.

4. Grab market segmentation strategies

Market segmentation divides a market into well-defined slices. A market segment
consists of a group of customers who share a similar set of needs and desires. The
marketer's job is to identify the appropriate number and nature of market segments and
decide which one(s) to target. Other researchers describe segments by looking at
behavioral considerations, such as consumer responses to benefits, usage occasions, or
brands, then seeing whether different characteristics are associated with each consumer-
response segment. For example, do people who want "quality" rather than "low price" in
an automobile differ in their geographic, demographic, and/or psychographic makeup?
Market segmentation is most often used to clarify for a target market/consumer decision.
This decision is especially helpful in providing a focus for a new business where it is
significant to identify and prioritize the market opportunities with the highest probability
of success. Following are the types of market segmentation to consider:
Consumer Behavior: This segmentation strategy uses to the difference in the
consumption behavior of a different group of consumers based on their lifestyles, patterns
of buying and using, patterns of spending money and time, etc. Segment consumption
behavior is used to suggest possible needs and desires.
Consumer Benefits: - this Market Segmentation strategy is based on specific variations in
consumer benefits that can be targeted by products, services, and marketing from the
business.
Consumer Demographics: - This Segmentation strategy is based on the differences in
consumer demographic factors. These factors normally align with specify needs and
want. Age is a common demographic attribute.
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Consumer Geography: - Physical location becomes the main aspect of this kind of
segmentation strategy. Various geographic regions often have different product
preferences and consumption patterns. Knowing where the organization sells products
and services enables the focus of advertising to those locations.
Consumer Psychographics: This type of segmentation strategy is based on the
differences in social class, lifestyle, or personality characteristics that can be targeted.
Promotion often suggests how products or services become expressions of the customer's
lifestyle and personality.
Strategies of Market Segmentation when targeting businesses, consider the needs within
an enterprise. Marketing is centered at a smaller number of people, typically responsible
for larger purchase decisions. Common segmenting approaches include:
Enterprise for Resale: This segmentation strategy that targets value-added resellers that
would resell products or services with no change.
Enterprise for internal use: Segment targets enterprise that would use delivered products
or services for importing internal productivity.
Enterprise firmographic: Segment strategy uses attributes within companies or industries
are used as a way to target needs in business to business. This is similar to the
demographic segmentation used in consumer behavior.
Key accounts: Large organizations can provide opportunities large enough to justify
dedicated marketing to those key accounts.
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Reference
- Vincent. (2017). Everything you need to know about Grab. Retrieved from
https://www.techedt.com/2017/01/everything-you-need-to-know-anout-grab
- Yon Heong Tung. (2015). 4 strategies Grab taxi is using to make grab car
competitive in SE Asia. Retrieved from https://e27.co/4-strategies-grabtaxi-using-
make-grabcar-competitive-se-asia-20150612/
- Retrieved from https://www.slideshare.net/laijianann/marketing-plan-grab
- Retrieved from https://www.bworldonline.com/business-case-study-grabbing-
market-shares/
- Retrieved from https://www.slideshare.net/Shooger/uber-vs-grab