Assignment
Case Study: Gojek and Grab Strategy
The case study below explains that there are 2 industries that provide on-demand services, Gojek and Grab. Both are fiercely competitive in the same market in Indonesia. In order for their app to be the most used they use different strategies to get customers. This is done by providing a variety of daily services in the application (Super App). Only both of them apply different strategies to become Super App.
Gojek's advantages: Using a consumer app, it provides services related to daily needs. Gojek also provides data analysis and other business needs and applications to increase partner revenue. Gojek has 21 services in the application, ranging from ride-hailing, food and drink delivery, buying gasoline, to payment services. Gojek also partners with other companies to add services, such as news, comics to e-commerce.
Gojek's total transactions, aka gross transaction value (GTV), reached US$ 9 billion or around Rp. 126 trillion in 2018 exceeding its competitors. The transaction increased 13.5 times compared to 2016.
Meanwhile, the transaction volume reached 2 billion. The number of application downloads is 142 million, food delivery services are 400 thousand partners in 370 cities in Indonesia, Go-Pay partners with 28 financial institutions and hundreds of thousands of partners in 370 cities with coverage of 204 cities in four countries
Grab's advantages: In contrast to Gojek, which focuses on presenting its own services, Grab chooses to partner. Currently, Grab is seeking new funding of US$ 2 billion or around Rp. 28 trillion. That this additional capital will be used to make Grab an application that is used every day (everyday superapp).
Grab collaborates with Hooq to provide video streaming services in early 2019
Grab collaborated with Booking Holdings to bring a hotel booking feature in its application and also collaborated with a Chinese health startup, Ping An Good Doctor. Cooperation like this is carried out to establish itself as an everyday superapp in Southeast Asia.
Grab has downloaded 144 million applications, food delivery services in 178 cities in Indonesia, ride-hailing (motorcycles and cars) 9 million (plus agents) in Southeast Asia, payment services Grab collaborates with OVO Indonesia, Coverage 336 cities in eight countries.
There is a tight competition between Gojek and Grab to become a SuperApp. Gojek focuses on presenting its own services, Grab chooses to partner. The contribution of Gojek partners is IDR 44.2 trillion to Indonesia's GDP and Grab's IDR 48.9 trillion.
From the two competition cases above, you are asked to analyze using IFE and EFE Matrix analysis tools, as well as IE matrix analysis. From the results of the analysis, answer the following questions:
1. Do the two industries use the Best Price Strategy or the Lowest Price Strategy. Name and explain their cheapest pricing strategy?
2. Do the two Industries use the Best Product Strategy or Differentiation/Differentiation Strategy. What are the differentiation strategies of the two industries?
3. Do the two industries use the Best Cost Strategy or the best cost strategy? Mention and explain?
4. Will the Company only focus on current business activities, or will it diversify into other industries in the future based on the information above?
5. Why do the two companies need to cooperate (partnership) in developing their service products?
6. Which of the two industries do you think is superior in strategy?