CORPORATE ENTREPRENEURSHIP AND DESIGN

AALTO UNIVERSITY, 2017

FINAL REPORT

CASE STUDY OF

&

TEAM 6.
ANNIKA, BENGTS (658083) annika.bengts@aalto.fi
JIAYING, CHEW (409630) jiaying.chew@aalto.fi
YOUNGKYU, KIM (662024) youngkyu.kim@aalto.fi
AYUMI, HIRASE (643506) ayumi.hirase@aalto.fi
PHUONG ANH TRAN (644424) phuong.a.tran@aalto.fi
SIIRI, KIHLSTRÖM (422358) siiri.kihlstrom@aalto.fi
 TABLE OF CONTENTS
1. INTRODUCTION 4
1.1. Companies Chosen & Why 5
1.2. Amazon General Overview 6
1.3. Ninja Van General Overview 7
1.4. Business Strategy, Innovation, Challenges 8
1.5. Factors of Consideration 10
2. AMAZON 11
2.1. Purpose and Origins 12
2.2. Timeline and Key Milestones 13
2.3. Target Market and Focus Area 14
2.4. Business Model Overview 15
2.5. Resources & Revenue Streams 16
2.6. Partnerships/collaborations 16
2.7. Products and services offering 17
2.8. Market Analysis: PEST 18
2.9. Market Analysis: SWOT 19
2.10. Organizational Culture 20
2.11. Strategy Analysis: Design and innovation 21
2.12. Strategy Analysis: System, Ecosystem 22
2.13. Challenges 24
3. NINJA VAN 25
3.1. Purpose and Origins 26
3.2. Timeline and Key Milestones 27
3.3. Target Market and Focus Area 28
3.4. Business Model Overview 29
3.5. Resources & Revenue Streams 30
3.6. Partnerships/collaborations 31
3.7. Market Analysis: PEST 32
3.8. Market Analysis: SWOT 33
2
 3.9. Organizational Culture 34
3.10. Strategy Analysis: Design and innovation 35
3.11. Strategy Analysis: System, Ecosystem 36
3.12. Challenges 39

4. COMPARAISON 40
4.1. Effectuation Theory & Strategy Mix 41
4.2. How does this affect the 2 companies? 43
4.3. Megatrends 44
4.4. Amazon: Future Considerations and Suggestions 45
4.5. Ninja Van: Future Considerations and Suggestions 46
5. CONCLUSION 47
6. REFERENCES 48

3
1. INTRODUCTION

The core of this report is to discover the differences between Corporate Giants and
Startups in how they approach design as a strategic framework, if at all. In this re-
port we will analyze two companies operating in the logistics & delivery business:
Global Giant Amazon and Singaporean Startup Ninja Van.

First, we will introduce both of the companies and the rationale behind the selection
of these two companies for this assignment. After a short background introduction
we delve deeper into the business models, market analysis and the current status-
es of both companies.
VS
In the strategy analysis chapter we seek answers to the following questions:
How is Design and Innovation adopted in Amazon and Ninja Van?
What contributes to the sustainability and scalability of both businesses?
How have the strategies evolved from past to present? What are the challenges?

Finally we will give suggestions and future considerations for the companies, in
relation to the megatrends. We look at how we see these companies could improve
their operations and strategy and perhaps, even learn from each other.

4
1.1. COMPANIES CHOSEN AND WHY
When we were selecting the companies for this analysis, the task was to select two companies - a startup and a bigger corporation - that
ideally operates in the same field. One of our team members suggested we would select Ninja Van as the startup as it was conducting
new kind of business processes in a field that was seen as mundane, yet rapidly growing and changing - logistics. Ninja Van is focused
especially in the last mile logistics and the business is strongly technology-enabled and e-commerce-focused.

Not all of us had heard of the company, but we were up for something new and exciting. When selecting the corporation we wanted to stick
with that mindset. Thus, instead of picking any of the obvious logistics giants such as DHL or FedEx, we chose Amazon- a conglomerate
that appears to be doing a million different things - but is actually dealing with same issues of logistics, ever since it’s founding. Ultimately,
both companies offer the same fundamental value for their customers: Time.

LOGISTICS & DELIVERY BUSINESS

Last-mile delivery companies are shaping up as a new investment front as the likes of Amazon (AMZN.O) and Alibaba Group (BABA.N)
expand in undeveloped markets such as Southeast Asia - home to 600 million people and one of the world’s fastest-growing Internet
regions. [1]

Emerging markets-focused private equity firm Abraaj Group, the lead investor in Ninja Van’s $30 million fund raising in 2016, is participating
in the new series C funding along with other investors, sources said.[1]

5
 1.2. AMAZON GENERAL OVERVIEW
GEOGRAPHICAL LOCATIONS

AMAZON
EUROPE HQ
AMAZON
HQ
Luxembourg
Seattle

Global HQ -> Seattle, Washington, United States / European HQ -> Luxembourg City, Luxembourg
Software development centers, Customer service centers,
Fulfillment and warehousing offices around the world [6]
KEY STATISTICS

?
Global E-commerce and Revenue 2016 Active customers Employees
Publicly Listed Company logistics Corporation 135.99 Billion USD 310 Million 341 400

6
 1.3. NINJA VAN GENERAL OVERVIEW

Ninja Van is a leading technology-enabled,

e-commerce-focused last mile logistics
provider.
GEOGRAPHICAL LOCATIONS

Ninja Van heavily employs technology

in its operations, including the use
of sophisticated algorithms to solve
complex logistics issues and optimize
delivery routes. It also takes an innovative
NINJA VAN approach to last-mile logistics, through
HQ
the creation of a regional logistics
Singapore
ecosystem by layering an integrated self-
collection network (Ninja Collect) over
door-to-door deliveries and supported
by an “Uberized” fleet partner program
to provide scalable capacity. The
Company also forges partnerships with
complementary third party transport
fleets to optimize utilization by leveraging
HQ -> Singapore its proprietary systems and capacity
sharing model
KEY STATISTICS

?
E-commerce-focused last Estimated revenue Funding Employees
Privately Held Company mile logistics provider 1 Million USD 32.5 Million USD 500-1000

7
 PAST CURRENT FUTURE

Diversifying their
Logistic
BUSINESS
STRATEGY
Physical products
(books)
portfolio, willing to
becoming “everyone ?
store”

They are the leader of It appears to be

INNOVATION E-commerce thanks to Trying to forecast competing in
trends technology sector
STRATEGY Internet Revolution

People were not

Market is
adapting fast enough, They have no
unpredictable, and
CHALLENGES so they had to
technologies are
expertise in some
looking for another specific fields
rapidly changing
connections.

8
 PAST CURRENT FUTURE

BUSINESS Small scall logistics

Process optimazation Regional infrastructure
STRATEGY for local E-Commerce

Last-mile delivery Technological

INNOVATION
STRATEGY
Premium service at
advantages and
strategic partnerships ?
low-cost

CHALLENGES No expertise in logistics

Expansion
beyond Singapor ?

9
In this section, we will consider the following factors across both companies:
Purpose and Creation
Timeline and Key Milestones
Target Market and Focus
Business Model
Market Analysis (PEST/SWOT)
Organizational Culture
Strategy Analysis
Challenges Faced
Since the goal is to identify the differences between both companies’ approach
to design as a strategic framework, we chose these factors to compare, as
they are pertinent to understanding the business environments and contexts
that the two companies operate in. With this knowledge, we were then able to
navigate around the problems, challenges and opportunities presented by the
current circumstances and mapped them against future trends.

10
 &

11
2.1. AMAZON: PURPOSE AND ORIGINS
Mission: “We strive to offer our customers the lowest possible prices, the best available selection,
and the utmost convenience.”[7] This mission statement promises an attractive e-commerce
service to satisfy customers’ needs. The following components or features are identifiable in
Amazon’s mission statement:
“WE STRIVE TO OFFER OUR
CUSTOMERS THE LOWEST
1.LOWEST PRICES 2.BEST SELECTION 3.UTMOST CONVENIENCE
POSSIBLE PRICES, THE BEST
AVAILABLE SELECTION, AND THE
UTMOST CONVENIENCE.”
Vision: “To be Earth’s most customer-centric company, where customers can find and discover
anything they might want to buy online.”[7]

This vision statement underscores the organization’s main aim of becoming the best e-commerce
company in the world. The following components or characteristics are emphasized in Amazon’s
vision statement:

2.CUSTOMER 3. WIDEST SELECTION OF

1. GLOBAL REACH
PRIORTIZATION PRODUCTS
“TO BE EARTH’S MOST
In 1994, Jeff Bezos founded Amazon, which launched the following year. He had a vision for the CUSTOMER-CENTRIC COMPANY,
company’s explosive growth and e-commerce domination. He knew from the very beginning, WHERE CUSTOMERS CAN FIND
he wanted Amazon to be “an everything store.” The name “Amazon” was chosen, because he
liked that the company would be named after the largest river in the world, hence the company’s AND DISCOVER ANYTHING THEY
original logo. Amazon started out as an online bookstore and then quickly diversified by adding MIGHT WANT TO BUY ONLINE.”
other items, including DVDs, music, video games, electronics, and clothing. In 1999, just five years
after he started Amazon, Jeff Bezos was named Time magazine’s “Person of the Year.” He received
this honor largely because of the company’s success in popularizing online shopping. [8,9]

12
2.2 TIMELINE AND KEY MILESTONES
Company milestones
& Directions
Product Launches

Setting the company direction

Amazon Founded (Announce they will Expands
Online book retailer Beyond Books)

1994 1998
Partner-
Launches ships and
Free Super logistics
Amazon Amazon
Saver Shipping system
Fresh Prime

2006 2005 2002

Amazon
Acquires Prime Air,
Kiva, Announce
Amazon
Amazon a robotics Drone Delivery Amazon Amazon
Purchases
Locker company ‘Prime Air’ Prime Now Key
Colis Prive

2011 2012 2013 2015 2016 2017

13
2.3. TARGET MARKET & FOCUS AREA

Since Amazon aims to be Earth’s most customer-cen-

tric company, where customers can find and discover
anything they might want to buy online, they are main-
ly involved in the business to customer (B2C) markets,
but also offers services for other businesses (B2B).
Amazon both sells goods for the businesses and also
offers the E-commerce as a platform as an opportu-
nity to draw commission from goods sold on Amazon.
This is in their attempt to create the best value for
end-users and customers on all fronts- taking care of
the retailing all the way to logistics.

Even though Amazon is primarily seen as an E-com-

merce marketplace, it is notable that logistics is a big
part of the company’s business as Amazon operating
the logistics itself, only the last step of the delivery is
executed with partner companies that function under
Amazon brand. [10]

It is difficult to pinpoint a specific target market for

Amazon as they aim to provide value for any person
who has access to the internet and interest in e-com-
merce platforms, typically those with spending power Countries where Amazon.com is present
(ages 18 and older). [12]

However, even though Amazon.com can be accessed

almost all over the world to anyone with access to the
internet (more than 100 countries), the company cur-
rently operates in only specific locations in the world,
as seen on the map.

14
2.4. BUSINESS MODEL CANVAS

KEY PARTNERS KEY ACTIVITIES VALUE CUSTOMER CUSTOMER

PROPOSTION RELATIONSHIP SEGMENTS
Amazon market place
Amazon books Automated
Suppliers and services Mass market
Amazon Music&videos Price
manufacturers
Amazon Game Self service Worldwide
Convenience
Amazon Fire product
Network of sell- Amazon Web Service
ers

KEY RESOURCES CHANNELS

Physical : ware- Amazon.com

houses
Website

Human

COST STRUCTURE REVENUE STREAMS

Cost-driven Retail sale
Commission on reseller sales
Economies of scale Amazon Prime monthly subscriptions
Sale of their own products (Kindle)

15
2.5. RESOURCES & REVENUE STREAMS
Economies of scale in the case of Amazon is both a cost structure and a key
resource. Indeed, by leveraging on this, Amazon displays the fact that they can
absorb the losses because they have plenty of resources for to experiment and
dabble in different areas. That is also the reason why Amazon is able to stay
competitive in their price models. [12,13]
The main revenue streams of Amazon is heavily reliant on their retail sales on
their Amazon market platform. However, with the development of their servic-
es arm, such as Amazon Prime, they also generate a constant revenue stream
from their monthly subscribers. In addition, Amazon also receives commissions
on goods sold from third-party resellers. They do so by providing a platform on
2.6. PARTNERSHIPS/COLLABORATIONS
We identified that rather than partnerships and collaborations, Amazon is more
inclined to Mergers and Acquisitions as they have the stature, resources and
capabilities. This then prompted us to look into the brands that Amazon has stra-
tegically acquired under their large umbrella of products and services
We have chosen these examples as we found that these strategic acquisitions
made by Amazon, have enabled the company to access varied and new sectors
that they were previously not present in. By purchasing these brands, Amazon
had access to the data and validation required for the new branches of their
services. This gave rise to their expansion and diversifying of portfolio- such as
Amazon Go and Amazon Music & Videos.
However, the varied acquisitions could also be a threat for Amazon’s investors,
who might not understand the rationales behind certain acquisitions. For exam-
ple, in the case of Whole Food, it was a bold move on Amazon’s part since it did
not seem like an obvious choice. Thus, Investors seeked more clarification from
Amazon about its purposes of this acquisition.
16
their website for sellers to create their own listings and “virtual shops”, where
they can then sell unique crafts, second-hand items and more.
However, as we can see from their product and service offerings, Amazon’s port-
folio is getting more varied as they diversify and expand. By providing different
services, such as Amazon Music & Videos, they get also their revenue by renting
movies and music on their websites. [14]
Furthermore, Amazon also attempted to produce their own products, in the likes
of Amazon Kindle and Fire Phone. However, this revenue stream has not yet
prove to be profitable, as they are still seeking footing for their field of expertise.
Key Examples of Amazon Acquisition
Owned by Amazon since June 2017.
This acquisition marked a big change in the vision of
Amazon because this is a field that Amazon was not
present in before. The goal of this acquisition appears
unclear at the moment, although there are speculations
following the “Amazon Go” concept. [15]
Owned by Amazon since April 1998
This acquisition allowed Amazon to have access to the
entertainment sector. It also allowed Amazon to adver-
tise its products on IMDb website by linking the movie
with the corresponding product on their website.
Owned by Amazon since April 2014.
By buying Twitch.tv, Amazon can promote their new sec-
tor: Amazon Gaming. With more than 100 million users
on Twitch, Amazon can reach them easier, and promote
also Amazon Web Service by offering game- hosting in
AWS. [16]
2.7. PRODUCT/SERVICE OFFERING
With origins as a online bookstore, Amazon today has an extensive portfolio of services
and products. Book-selling is not their main activity anymore. With plans to conquer new
markets and new customer segments, Amazon’s aim is to develop more various activities.

Amazon product and service offering [17,18]

AMAZON AMAZON AMAZON AMAZON

AMAZON MARKET PLACE AMAZON BOOKS
MUSICS & VIDEOS GAME FIRE PRODUCTS WEB SERVICE

Platform for
Online store Amazon Kindle Fire
third party IMDB Twitch.tv
by Amazon Kindle
retailers

Others websites Amazon Echo and Amazon Digital

Fire Phone
owned by Ama- Alexa Game store
zon (Goodreads,
abebooks.com,-
Comixology, Book Amazon Prime Amazon Fire
depository etc.) Video OS

17
2.8. MARKET ANALYSIS: PEST
As we can see in their business model, Amazon is no longer simply an
online bookstore. The company has diversified their products and services
offering. However, this diversification also implies creating competition in
various sectors that Amazon didn’t exist in before.
For example, in the development of voice assistant Alexa, Amazon positions
itself in the same market as Google, Microsoft and Apple. Through this,
Amazon achieved great results with 76% share of the American Market
Governments present improved business
conditions through efforts in fighting
cybercrime.
Overall governmental support for e-commerce
is an opportunity.
Amazon benefits from political stability.
POLITICAL
The company stands to benefit from
increasing online buying habits, as more
people around the world gain access to the
Internet.
Increasing wealth disparity.
An increasing degree of consumerism
creates opportunities for Amazon.
SOCIO-CULTURAL
18
for Smart Home Speakers. [19]
This example illustrates the complexity of of Amazon’s Business
Environment. With intent to provide an increasing number of products
and services, Amazon exposes itself to more threats and weaknesses
because they are dabbling in fields that is not their . In the future, Amazon
plans to develop further in Services, Healthcare and Entertainment to
obtain new customers and markets.
The increasing disposable income in developing
markets could boost the company’s financial
performance
The potential economic recession of China
threatens Amazon’s business
Economic stability of most developed markets.
ECONOMIC
The threat of rapid technological obsolescence,
which imposes pressure on the company to
continuously develop its technological assets.
The company also faces the constant threat of
cybercrime.
Increasing IT efficiency.
TECHNOLOGICAL
2.9. MARKET ANALYSIS: SWOT

Brand Worldwide recognition : no need to have
more communication because people know what
is “Amazon”
Well acknowledge skill in logistics and distribution
system in the worldwide scale
Variety of their offers/ selections : their products
are various, allow customers to find everything
they need.
A profitable organisation
Human centric
Zero concentration of business : too variety of
services and products
Lack of expertise in some technical field (Fire Phone)
Various competitors in different sectors
The “zero fee shipping” strategy could damage the
revenue of the company
The margin is really low : near zero margin business
model.

STRENGTHS WEAKNESS

Amazon has the capacity to absorb new market by
buying its competitor.
Creation different offers to conquer new market :
Amazon Prime, Amazon prime video
Amazon still not conquerer the Chinese market, and
deal with it competitor Alibaba.
Because of it variety of products and selections,
Amazon has to multiply and create new storages
space : logistic issues.
Strong Competitors in new markets as Google, Apple
or Microsoft
Low cost margin in emergent markets is not available
- facing new competitors

OPPORTUNITIES THREATS

19
2.10. ORGANIZATIONAL CULTURE
1. Customer-centricity: Amazon’s vision statement highlights the centrality
of customers in its business. This factor is also included in the company’s
organizational culture. For example, Amazon reinforces workers’ focus
on customers’ needs and demands. The company continually strives to
determine trends and changes in consumer preferences, and applies
these preferences in its online retail and related services.
2. Boldness: Amazon’s employees are encouraged to take risks, such
as in considering new ideas to do business. In emphasizing boldness,
the company also facilitates openness toward new ideas based on an
organizational diversity policy.
3. Peculiarity: Amazon’s organizational culture also involves peculiarity.
In particular, this cultural characteristic refers to the idea of challenging
conventions. For example, Amazon motivates its employees to view
themselves and their work as different from conventional ways of doing
business.
20
Jeff Bezos is obsessed about delivering a flawless customer experience,
and requires every Amazon employee — from software engineers to
warehouse workers to executives — to have the same attitude towards
customer service. [20]
Bezos even made his email address public and encourages customers
to reach out to him with complaints. When he receives a message from
a disgruntled Amazon customer, Bezos forwards it to the appropriate
department with a very simple, one-character note: “?” And when Amazon
employees receive those messages, they often drop everything to address
it. [20].
At Amazon, customer complaints don’t disappear once they’ve been
addressed by customer service reps. Instead, feedback is turned into
WOCAS report that stands for “what our customers are saying.” WOCAS
reports were developed to curate customer service-collected insights
and deliver them directly to department leaders. But it doesn’t stop there.
Amazon actually empowers its customer service reps to take action when
they notice a trending or particularly glaring problem. [20].
2.11. STRATEGY ANALYSIS: DESIGN AND INNOVATION
Jeff Bezos only tends to use the word invention instead to focus on
innovations. Bezos wants the customers to make the decision for them;
whether the invention is good or not. [21]. Jeff Bezos is not afraid of failing;
instead he is encouraging to fail fast and see if the customers like the
product or not. This is reflective in how the company operates.
Amazon is also aware that they may have a great vision for what is
possible, but customers are not ready for it yet. Thus, they wait until
complementary products come into the marketplace before they launch
new products. For an example, corning’s Gorilla Glass was invented 50
years ago, and is only gaining successful recognition now. [21]
This is one of the keys to the pursuit of innovation – not going public
too early. Amazon innovates early and often, places lots of small bets,
continues to invest in the ones that fit their vision and overcome key
hurdles, and most importantly keep things quiet until they have a good
grasp on exactly how they plan to explain the invention or educate people
Example of Fire Phone by Amazon
21
on its potential value before going public. [21].
Amazon tends to be the most customer-centric company in Earth. But it
seems that they have abundance of resources that they can just invest
in new interesting products without asking the users if they like it or not.
The strategy appears to be to first launch it and see if the project takes off.
Nevertheless, their excellent customer service seems to be the customer
centeredness in their business.
Overall, for Amazon, customer-centric design means more customer-
centric services than customer-centric innovation. They seems to focus
on flawless user-centered customer service development, but do not
on user-centered product design. Their strategy seems to be gaining
customers by excellent customer service, not with excellent user-centric
product design. For example, the fail of Fire Phone seemed to be totally
because of lack of user involvement in their designing process [22,23].
2.12. STRATEGY ANALYSIS: SYSTEM, ECOSYSTEM

SYSTEM
What makes the Amazon experience so remarkable, is that the component In addition, the Kindle is a well-made, purpose-built reading device that
parts of their service come together to create a superior whole. Amazon is “registered” to your Amazon Account so that you can get downloads
exemplifies the idea of “positioning within an existing market to redefine directly from Amazon and email docs to your Kindle for reading. With
the market in their favor so that their offering cannot easily be imitated by Whispernet Delivery you make a purchase and then get the content
competitors”. However, despite their integrated system, Amazon is facing sent to your Kindle. No connection fees or syncing needed. With 1- Click
a huge threat from Apple, another master of design thinking. Purchase users can easily find a new book and with a single click, you
The following is a synopsis of Amazon’s different components and how can buy that item. Your Credit Card on file then gets charged. You also
they come together to form the entire experience [24] get an email confirmation. With all of a user’s preferences and history in
their database, Amazon can deliver highly targeted Direct Marketing opt-
Amazon Account creates the foundation of Amazon’s system. It ties to in emails that drive additional purchases.
the individual’s purchase history, credit card info, preferences, wish
lists, Kindle devices and contact info. Content Is King: Not only does
HISTORY
Amazon have a tremendous volume of content, they also have Content CREDIT CARD
Recommendations catered to each user’s preference and stored purchase SEARCH
history. Competing with Low Content Costs, there has been a bit of a dust- LOW COST
up recently between Amazon, Apple and the content publishers over CONTENT
EMAIL
pricing, but Amazon’s costs still are the cheapest around. Amazon also
includes very strong and Extensive Site Search capabilities that makes it
LIKES
easier to find content. In addition, the Amazon community is very active,
thus Predictive Recommendations for content (+ product) are invaluable
to supporting informed purchase decisions. Amazon takes your likes
RECOM-
/ preferences and then combines them with the recommendations, COMMUNITY
MENTATIONS
KINDLE
leveraging on the purchase history of people who have made similar
ACCOUNT
purchases.
DIRECT
MARKETING

WHISPERNET
DELIVERY
EMAIL 1-CLICK
PURCHASE
EMAIL

CREDIT CARD
22
ECOSYSTEM
Bezos emphasizes platforms that each serves its own customers in
the best and fastest possible way. [23] Amazon ecosystem, made up of
merchants, writers, reviewers, publishers, apps developers, and the
information market of commentators, analysts, journalists and feature
writers who get the word out about opportunity on the Amazon platform.
Bezos is not as great as Jobs at playing the information market but he is
good. [24]
The Amazon ecosystem is made up of tens of thousands of companies
whose futures rest on Amazon making the right calls, on Bezos being
successful. All these people need to develop their own capabilities in
order to succeed on the Amazon platform. To participate you need to be
23
capable of growing and adapting, and of course competing - all the while
putting your trust in Amazon’s ability to make the right moves.[24]
That means all eyes are on Bezos and the calls he makes. Anybody who
knows platform and ecosystem economics would not be surprised by
Amazon’s adjacencies. The whole point of the platform is to tear business
away from the outdated idea of core competency.[24]
Platforms allow companies to develop complex options portfolios
because the ecosystem is full of businesses that can jump quickly into
new opportunity. It is also highly visible and can attract new resources
when the owner makes adjacency moves into new markets. [24]
2.13. CHALLENGES
RESOURCES
Amazon has ample resources to easily
acquire other companies without too much
consideration. However, expanding on different
and varied acquisitions without real aim or
purpose could spread doubt and confusion in
the minds of investors and banks. However,
it is difficult to foretell whether this poses an
actual threat because Amazon has proven that
they have the capacity and resources to absorb
failures. At current, their diversified portfolio
has reached more successes than failures
(AWS / Amazon movies). That is the primary
reason why investors are still optimistic about
the Amazon policy. However in the long term,
uncertain investments could cost them the trust
of their investors or banks. [26]
THREATS
With the current policy, Amazon continues
to invest and diversify their products and
services offering. By doing this, they create
more competitors in different sectors, where
they lack expertise. For example, in the case of
Voice Assistant Alexa, Amazon had to compete
with other major companies such as Google,
Microsoft or Apple. Although Amazon had
managed to work their way around this and
were competitive enough to reach 76% of the
American Market for Smart Home Speakers,
this was a one-off example that may not always
prove to be. In contrast, in the case of Prime
Video launched in 2016 (worldwide), Amazon
competes in unchartered territories with
streaming giant, Netflix. This is a challenge for
Amazon, but also for Netflix to stay competitive
in this sector. As Reed Hastings, CEO of Netflix
said, “Because Jeff’s there, it’s kind of scary”. [26]
24
INNOVATION PROCESS
Amazon wants to be the Earth’s most customer-
centric company but that doesn’t mean that they
adopt a “user-centric approach”. The current
strategy of Amazon seems to be to “secure any
slice of the pie”. As they innovate to keep up
with the technological trends, they tend to leap
into the markets first, without a real expertise
in those fields, getting themselves in the game
before figuring out how to navigate their way
around. This could be the reason behind why
some of their projects had not reached the level
of success expected. The Fire Phone, launched
in 2014 was one such example. However, it has
been proven that this is not a major stumbling
block as Amazon has sufficient resources to
absorb failure, thus this method of innovation
could potentially be a strategic way to go.
25
3.1. NINJA VAN: PURPOSE AND ORIGINS
Ninja Van aims to create seamless and more reliable than ever
before deliveries that serve all businesses. They believe in creating
a great product to better serve customers.
The mission of Ninja Van is to break bottlenecks in logistics in
South East Asia and look to deliver innovative and scalable logistics
solutions to businesses of all sizes. Ninja Van states to understand
E-commerce, modern customers and the need to create open,
honest and seamless customer experience.
26
Ninja Van was established in 2014. The story of the company
begins from another startup, where the founders faced problems
with logistics when running it. Lai Chang Wen - a banker - found
it difficult to find nice-fitting men’s shirts and decided to build his
own menswear brand. Marcella, a made-to-measure menswear
company was founded. However, the company soon faced problems
with unreliable courier services - the deliveries were either delayed
or lost in transit to customers. This was when Lai faced a second
problem he then wanted to solve. At the age of 27, he set up logistics
company Ninja Van with co-founders Mr Chong and Boxian Tan. [27]
3.2. TIMELINE AND KEY MILESTONES
Launched
“Ninja Collect service”
(It allows customers to col-
lect their parcels where they
Founded in want,at the convenient loca-
Singapore tion of their choosing)
2014 2015
27
Company milestones
& Directions
Product Launches
Launched in
Malaysia,Indonesia,
Vietnam, Philippines
and Thailand.
Installs GreyOrange
Successfully raised system in Singapore
$30 million series B, (the first high-speed
led by Abraaj group. advanced Sortation
System)
2016 2017
3.3. NINJA VAN TARGET MARKET AND FOCUS AREA
Ninja Van prides themselves as a bridge between Merchants
and Customers. As such, their solutions cater primarily for the
Business to Business (B2B) sector. Their clientele base is made
up of e-commerce merchants such as Omni-channel platforms
(Zalora, AceTurtle, Lazada), local brands & fashion blogshops (Love
Bonito, Fashion Valet, Creative), and established brick-and-mortar
local brands (Watsons, Creative) that have recently caught onto the
e-commerce train.

Nevertheless, Ninja Van’s logistics and delivery solutions are

optimised from the get-go, to provide value for customers of
e-commerce merchants. Every strategic move made by Ninja Van
is to ultimately provide benefit to end-customers (anyone who has
access to internet and shops online). We elaborate on this in the
following sections.

Ninja Van currently operates in Southeast Asia: Malaysia, Indonesia,

Vietnam, Philippines and Thailand, with headquarters in Singapore.
It has quickly expanded to become one of the go-to logistics
providers for top e-commerce companies in the region. Ninja Van Customers

28
3.4. BUSINESS MODEL OVERVIEW

KEY PARTNERS KEY ACTIVITIES VALUE CUSTOMER CUSTOMER

PROPOSTION RELATIONSHIP SEGMENTS
Logistics Sorting
Investors Quick Deliveries to Personalised Paying:
Last-mile, next day the doorstep and Delivery E-Commerce
Local E-Commerce Delivery convenience for end- Retailers
Retailers (i.e., Love Door to door delivery customers Automated Services
Bonito, Fashion Valet) Ninja Collect (Ninja Collect)
Premium service at Non- paying End-
E-Commerce Giants affordable price Beneficiaries:
(i.e., AceTurtle, Zalora) E-Commerce
Customers (Anyone)
Robotics Technologies: KEY RESOURCES CHANNELS
Greyorange
Proprietory Ninja Vans & Drivers
technology (own fleet and staff)
Ninja Point Partners:
Brick-and-Motar Retail
Physical warehouses Ninja Drivers (crowd-
Stores
sourced)
Human Resource
Ninja Points
Crowd-source

COST STRUCTURE REVENUE STREAMS

Investment in Technology Investment Funding
(Series A: Monk’s Hill Ventures
Infrastructure: Warehouse & Expansion Seris B: Abraaj Group, Monk’s Hill Ventures, B Capital
Group, YJ Capital)
Drivers for delivery
E-Commerce Retailers

29
3.5. RESOURCES & REVENUE STREAMS

As a Startup, the primary resource is through investors’ investment. efficient manner. Ninja Van’s proprietary technology, API-centric
Ninja Van has gone through several rounds of funding thus far. They [Application Programming Interface] application is built to compute
first secured Seed Funding of approximately US$150,000 from capacity checks and optimize vehicle routes, thus allowing them
angel investors, back in 2014. They then raised US$2.5 million for Service
to keep costsGuidance
as low as possible by optimising routes for a single
series A funding round in 2015. The investment was led by Monk’s journey. Each order has its own pickup and delivery waypoints,
NINJA VAN provides next-day deliveries to any location in Singapore with the exception of offshore islands and
Hill Ventures, with participation from regional corporates such as allowing themcantobegroup
restricted zones(list found here).multiple waypoints
Simply make a booking online and weinwillthe same
head over vicinity to a
to your specified
pickup location to collect your parcels.
Malaysia’s Insas Berhad. Private equity firm Abraaj Group, then led single route. By replicating this model in various cities, Ninja Van
[30]
With our Real-time Parcel Tracking System, we report the status of parcels during the delivery process, and we
Ninja Van’s US$30 million series B round in April 2016. Investors for wasensure
able to easily
your parcel expand
is accounted across
for every step of the way. the region.

this round include Monk’s Hill Ventures and Facebook co-founder Deliveries will take place in the chosen timeframe (1-3 day, or next day) from the selected pickup date.

Eduardo Saverin’s B Capital Group. In Sep 2017, it was also revealed

that the company is looking at Series C funding of US$60 million for Courier Services
their expansion to reach remote communities in the region. [28]

Within its business operations, Ninja Van’s primary revenue stream

is from e-commerce merchants in the region, where companies
pay per parcel to schedule next-day deliveries (refer to image).
As of mid-2016, Ninja Van had about 3,000 clients and made up to Standard Express Time-Slot
15,000 parcel deliveries per day across Singapore, Malaysia, and COURIER COURIER COURIER
Indonesia. This number was said to grow 10-15% per month, as Starting from
$5 Starting from
$6 Starting from
$8
they carried out extensive expansion plans in the past year. [29] Delivery within 1-3 working days Delivery within 1-2 working days Choose your preferred time for
next day delivery
They built a hybrid network that combines traditional hub and (9am - 12pm, 12-3pm, 3-6pm, 6-10pm)*

spoke with a localised fleet. Vehicles are resupplied with same-

Up to 2 free Change of delivery details
day parcels, thus enabling same-day deliveries in a most cost- redeliveries (at least 1 day in advance)

Weekday + Cash on delivery collection

Saturday Delivery ($1 or 3% of invoice value- whichever is higher)

*By default if no timeslot is selected, delivery will be anytime between 9am-10pm. Delivery will commence the day after pickup, aside from
same-day delivery.
*Shippers are responsible for the selection of correct delivery option. NO REFUNDS will be given for wrong option selected.
* In cases of unsuccessful deliveries / returns, Ninja offers a total of 3 attempts (Original attempt + 2 subsequent redelivery/re-pickup
attempts)

30 Payment Method
3.6. PARTNERSHIPS & COLLABORATIONS
Partnerships and Collaborations make up a large part of every
Startup’s “support system”. With limited resources and little room
for failure, concepts are often tested and validated in small scales
and initial collaborative test-beds before expanding operations.
Since the concept of Ninja Van stemmed from a problem that
Marcella (owned by co-founders, Boxian Tan & Lai Chang Wen) was
facing, they were easily able to test and validate the potentials of
the concept early on. Proving the model successful, Ninja Van then
partnered local e-commerce merchants such as Lazada and Love
Bonito to roll out their logistics fleet by doing small batch deliveries
before expanding operations and reaching an even wider clientele
(locally and regionally).
Zooming in on the last mile – the stretch after an item reaches the
local warehouse by plane or ship and is sent to the consumer’s
doorstep. Achieving up to approximately 5,000 deliveries a day, by
iterating and improving their processes, they were able to optimise
“sortation”– the transportation of goods to their destinations
(drivers instantly know the optimal route to deliver the most
parcels in the shortest time), using their proprietary technology and
algorithm, enabling next-day delivery islandwide within Singapore
(and Malaysia). [31]
Receiving investment funding from private equity and venture
capital firms such as Monk’s Hill Ventures, Abraaj Group, B Capital
Group and YJ Capital, Ninja Van continually expands to the rest of
the Southeast Asia region.[29]
31
With the funding and support of these major players in the startup
scene, Ninja Van has been getting more attention than ever. Achieving
a steady growth within Singapore and coined “Southeast Asia’s
fastest growing last-mile logistics company”, Ninja Van partnered
Greyorange (one of the world’s Top 50 Robotics Companies) in early
2017, commissioning their first high-speed advanced Sortation
System capable of handling 6000 parcels an hour at the Singapore
hub of Ninja Van. [32]
What started out as a simple logistics solution for local e-commerce
merchants, has rapidly transformed into an infrastructure built
to facilitate adapting to the ever-changing playing field. With this
strategic move to cope with the ever-increasing demand, Ninja
Van proves that they are able to identify the missing links in their
processes as they constantly seek innovation to achieve their goals
of next-day delivery, even across the region.
In October 2017, omni-channel platform vendor Ace Turtle has
hired, calling a partnership, Ninja Van to be its last mile delivery
channel in Singapore and Malaysia. As part of the process, Ace
Turtle’s Rubicon platform will be integrated with Ninja Van’s API to
make the delivery process hassle-free. [31]
It is evident that every partnership and collaboration Ninja Van
has engaged in, points to a strategic direction of the company’s
expansion plans. This not only allows Ninja Van to leverage on the
shoulders of giants, but creates a unique identity of its own.
3.7.MARKET ANALYSIS: PEST
With globalisation and digitalisation, Asia-Pacific now accounts for
35% of the global B2C e-commerce market, with a total value of over
US$1.5trn. And as consumer retail spending online rose in Asia,
there has been a proliferation of logistics and last-mile delivery
start-ups across the region.[34]
Ninja Van CEO Chang Wen Lai expresses, “There are no last mile
companies that are present across the region. The likes of SingPost,
Malaysia Post and [Thailand’s top logistics firm] Kerry are only
present in their own countries. So when [e-commerce] giants want
a single logistics player that can provide a seamless experience
across the region, there is nobody to turn to.” This explains the
Governments present improved business conditions through efforts
in fighting cybercrime.
Ninja Van benefits from political stability since it is based in Singapore.
However, with expansion in the S.E.A region, this may prove to be
tricky.
Overall governmental support for e-commerce and startup scene is
an opportunity, in most of the region
POLITICAL
Southeast Asia - home to 600 million people and one of the world’s
fastest-growing Internet regions.
SOCIO-CULTURAL
32
strategic move by Ninja Van in attempts to expand within (and
conquer) the region. Rather than simply being in countries, the
Ninja Van CEO said he wants to spread its logistics roots beyond the
biggest cities to tap into tier-two and -three locations.[28]
Starting out in Singapore, Ninja Van has certainly benefited from the
landscape the city state has to offer- Geographical Scale, Political
Stability and Support of the startup scene. However, with this bold
strategy brings questions as to whether Ninja Van will be able to
deliver their promises, since the infrastructure in the rest of the
region (amongst other factors) pose clear challenges to the startup
Investment in supply chain and logistics tech start-ups is expanding
rapidly.
Southeast Asia has many logistical hurdles such as a huge number of
islands. The logistics industry is highly fragmented with a number of
local players jostling for market share.
ECONOMIC
The threat of rapid technological obsolescence, which imposes
pressure on the company to continuously develop its technological
assets.
The company also faces the constant threat of cybercrime.
Increasing IT efficiency.
TECHNOLOGICAL
3.8. MARKET ANALYSIS: SWOT

Lower investment cost in infrastructures because

they use other people vans in addition to their own
fleet
Answer needs of the market : many shops do not
have expertise in logistics and distribution. Ninja
Van answers this need: e-commerce logistic
No stable workforces : during some special Season,
Ninja Van has to looking for new workforces to
answer the demand

STRENGTHS WEAKNESS

Globalisation: Ninja Van has many markets to

conquer in the region and opportunities to rethink
the ecosystem and infrastructure of last-mile
delivery.
Digitalisation: The popularity of e-commerce
along with the need of logistic and distribution
system makes them even more relevant now than
before: how to deliver faster to the client?
Buying or be competing with bigger distributions
firms
Other competitors that operate in the B2C
business for even smaller e-commerce operators
(e.g. those on Etsy): Zyllem,

FedEX, DHL answers worldwide need but not

regional or short distance need.

OPPORTUNITIES THREATS

33
3.9. ORGANIZATIONAL CULTURE
Although it isn’t explicitly expressed, the organizational culture of
Ninja Van is apparent in their strategy. With roots in problem-solving,
Ninja Van is constantly morphing to become better. Working with a
lean team of bright, driven, and ambitious young talents, they are
forward-looking, and always seeking answers to any issues they
face in delivering their promises. Greenhorns in the logistics sector,
Ninja Van has rapidly expanded in the short span of operations,
leveraging on the fact that they spot trends and identify gaps in the
market. Using their fresh lenses unclouded by prior knowledge, they
are also able to tackle challenges from different perspectives than
players who have been in the industry for decades, thus allowing
them to better invest and forecast their own development.
34
As with the example of their partnership with GreyOrange, Tan Bo
Xian (Co-founder and COO) said, “At Ninja Van, technology is always
at the heart of everything we do, and we are always looking to
optimise and automate processes to improve efficiencies. We have
been studying a solution such as this [sortation system] since our
early days, and are happy to have grown to the point where our
volumes well justify the investment. The GreyOrange Sortation
system allows us to operate round the clock with a much leaner
team of staff, reducing labour costs significantly.” [32]
3.10. STRATEGY ANALYSIS: DESIGN AND INNOVATION
Innovation is at the heart of Ninja Van’s business strategy. In a fast Increase brand awareness and visibility of Ninja Van. They are
growing yet rapidly changing market environment, Ninja Van needs currently working on their consumer branding and marketing
to continuously innovate and evolve to ensure it remains at the strategy which will require both building up an internal marketing
forefront of the logistics industry. As a startup, Ninja Van cannot team and working with external brand agencies. [38].
remain in it’s place, they must innovate, develop and be open to
all the new opportunities. They need to be aware and look ahead,
to be able to expand their business. Despite its relatively young
age and tasting some initial success, the company is certainly not
staying still [35]. They are constantly looking for new opportunities
NEW
and ways to improve and optimise their processes to achieve the
MARKET
best efficiency and results. AREAS

Ninja Van’s value creation consists of the following levers:

1. Further consolidate existing market position by
continuously innovating to ensure it offers the best product to
customers, enhancing customer management to increase loyalty, MARKET DEVELOPMENT
and strengthening operations such as better customer service and POSITION OPPORTUNITIES
stricter adherence to service level agreements [35].
2. Enter new markets and build nationwide coverage INNOVATION
whilst evaluating the opportunity to enter into joint ventures and
partnerships with key strategic players. Ninja Van has further
expanded its coverage in existing markets as well as penetrating
new markets such as the Philippines, Thailand and Vietnam. [35].

3. Targeted new business development opportunities BRAND NEW

including cross-border e-commerce logistics and exploring AND PRODUCT
synergistic business opportunities [35]. VISIBILITY OFFERINGS

4. Continuously innovate and roll-out new product offerings

to add value to customers [35].
35
3.11. STRATEGY ANALYSIS: SYSTEM, ECOSYSTEM
SYSTEM
The uniqueness of Ninja Van lies in the seamless flow of delivery-
from merchant to customer. Every detail and process is well-thought
out, enabled by technology and algorithms used to improve every
process, the system design definitely forms Ninja Van’s competitive
edge.
The following is a synopsis of Ninja Van’s different components and
how they come together to form the entire flow:
From receiving the parcel at the Ninja Van warehouse, staff use their
handphones to scan parcels and find out in an instant where the
parcel is heading and what should be done with it. This is enabled
by a Sophisticated algorithm that is used to calculate the best route
a driver should take, or which van should be used to deliver a parcel.
This means drivers are able to deliver more parcels in an hour while
saving on fuel costs. They say their algorithm is so efficient they use
one-third the manpower of other delivery systems, allowing them
to drive down their prices while still providing top- notch service.
In addition, to improve the sorting process, the GreyOrange system
capable of handling 6000 parcels an hour, has been installed at the
Singapore hub of Ninja Van. The High-speed advanced Sortation
System allows the company to operate round the clock with a
much leaner team of staff, reducing labour costs significantly. The
line is very compact, optimising space utilization while increasing
productivity.The proprietary embedded system of the GreyOrange
Linear Sorter combines advanced software and two lines of high-
speed sortation conveyors capable of sorting thousands of parcels
in various shapes and sizes including polybags, plus irregular and
36
fragile packages. It also sorts the parcels according to dispatch
time, destination and other parameters as determined at different
times of the day, including service levels such as same-day and
next-day delivery.
Ninja Van provides order tracking at multiple stages, from pick-ups
at the warehouse to sorting, transit, and final delivery. Real -time
tracking allows customers to monitor the delivery process on the
user-friendly interface anywhere, anytime and keeps them updated
with active communication through email and SMS.
Other than merchants and end-customers, Ninja Van has also
considered their drivers. From pick-up and delivery process, down
to the design details of the app, Ninja Van ensures a seamless user
experience for drivers. With a simple and unconvoluted interface-
regardless of age or tech-savviness, drivers are able to conveniently
download the app, register and start delivering with ease. Picking
up parcels from the strategically located warehouses, parcels are
then scanned and automatically updated in the Driver app. With the
integrative system of parcel-sorting by time/ date and optimised
route, Ninja Van drivers are offered the flexibility to choose their
delivery timing (anytime between 10am-9pm) and location cluster
which they feel most comfortable with for the particular day.
ECOSYSTEM

Complementing Ninja Van’s already comprehensive system, there
are 4 main parties that make up the ecosystem that surrounds
and supports Ninja Van’s operations. They are Customers (Local
Merchants), Omni-channel Partners, Drivers and Logistics Partners.
One of the key stakeholders that enable Ninja Van’s operations,
is E-commerce Merchants- that supply the goods and packages,
which make up the raison d’etre of the logistics system. As the
paying user of the service, Ninja Van aims to keep their Customers
(Merchants) happy, by providing fast and reliable delivery services
to the end-users (Merchants’ Customers).
Another E-Commerce Platform- Omni-channel partners, such as
Ace Turtle’s Rubicon platform is integrated with Ninja Van’s API
to make the delivery process hassle-free. Ninja Van’s integrated
logistic solution plays a critical role in enhancing scalability of
operation and growth of Ace Turtle as an omni-channel platform in
Southeast Asia. This is also a major step for Ninja Van’s scalability
and expansion within the region. It spearheads the integration
all the way from the Omni-channel’s own logistics to Ninja Van’s
delivery to customer’s’ doorstep.

“SELLERS” “DRIVERS” “BUYERS”

ONLINE STORE LOGISTICS PARTNERS DRIVERS END USERS

RETAIL

1. OMNI CHANNEL
PARTNERS 1. NINJA DELVERY 2. NINJA COLLECT
1. OWN FLEET
Ace Turtle’s EMPLOYEES
NINJA BOXES
(Omni channel Gray Orange
Technology) aftership 2. UBER FOR
(Advanced
(real tracking
LOGISTICS
robotics and
time) NINJA STORES
automation (Ninka point
2. INDIVIDUAL system)
Partners)rs
SHOP SELLERS

37
Drivers make up another instrumental component of the Ninja Van
service. There are two types of drivers- Ninja Van’s own fleet, and
the crowd-sourced (reserve) fleet. With this model, any person
with a readily available vehicle will be able to earn the extra cash,
regardless of whether they are car-owners or not. This enables
them to easily enter the delivery service. Ninja Van has an extensive
network of delivery partners (referring to the reserve fleet), which
they tap into when demand is high. By leveraging on idle vehicles
of other delivery services (such as McDonalds), and regular car-
owners, the reach is wide and far, ensuring that there is no lack of
reserve fleet should Ninja Van require the additional manpower.
Looking into the logistics partners, we identified the different
stakeholders within the various service offerings provided by
Ninja Van. In the regular door-to-door deliveries, GreyOrange and
38
aftership play essential roles in Ninja Van’s key differentiation
factors. The GreyOrange Sortation system allows Ninja Van to
operate round the clock with a much leaner team of staff, reducing
labour costs significantly, while aftership offers real time tracking.
However, in the Ninja Collect (a service where customers can
pick up their parcels when they want, where they want, at their
own convenience) branch of the ecosystem, stakeholders include
partnerships with malls for installation of the Ninja Boxes (automated
parcel lockers strategically located across the country. Customers
can collect their parcels by simply scanning a verification code.)
as well as Ninja Points, which are the partner retail shops located
at areas with high footfall. Customers can collect their parcels by
providing the store attendant with a verification code.
3.12. CHALLENGES
RESOURCES
As mentioned earlier in the Market Analysis
section, Ninja Van has been operating in the
“safe zone” of Singapore’s context. However,
with their expansion plans, to achieve similar
results and successes in the region may prove
to be tricky (and potentially tedious) as there are
various major stumbling blocks that could pose
issues to their operations. Unlike Singapore,
Malaysia and the rest of the region is vast and
many convenience stores are often at least a
5 minutes drive away from residential areas
(with perhaps the exception of major cities like
Kuala Lumpur and Bangkok). While the backing
of Insas Berhad would help tremendously to
get connections with potential fleetpartners,
what had worked in Singapore might not
apply seamlessly elsewhere. In addition to the
geographical landscape, the political and socio-
economic climate of certain countries could also
spell trouble for Ninja Van, as they may meet
with hurdles in implementation and execution.
THREATS
With state-of-the-art technology and intricately
designed flow of systems and processes, Ninja
Van is currently the trailblazer in their field of
last-mile delivery. However, the model adopted
is not entirely unique and could potentially be
imitated by Corporate Giants that have access to
abundance of resources and capacities to take
on the challenge of annihilating all competition
in the field to gain monopoly. As these giants are
expanding from retail all the way to logistics and
delivery, the entire spectrum of the ecosystem
can likely be unified more easily than Ninja Van.
An example would be Alibaba, where they have
been testing various innovations and similar
models of last-mile delivery sorting within their
smart warehouse, using robotics. [36]
39
INNOVATION PROCESS
With Ninja Van’s expansion to the rest of the
S.E.A region, their local offices in each country/
city may not have the same core capabilities that
the Singapore Headquarters has. As the team
grows, their operations will begin to take shape
differently depending on the context of the
country/ city, since the culture and behaviours
of people will vary. Thus, it is crucial for Ninja
Van to adapt to the customers’ wants, needs and
preferences depending on the cities that the are
in. This poses a real challenge for the teams as it
could potentially mean that the business model
and operations would need to be altered on a
case-by-case basis, depending on the user’s
needs in each geographical location. However,
by retaining their greenhorn perspective to
problem-solving and competitive drive, Ninja
Van could deliver results nevertheless.
4. COMPARAISON

40
4.1. EFFECTUATION THEORY & STRATEGIY MATRIX

The Bird in Hand Principle.

An entrepreneur does not start with a given goal, but with the tools he or she has.

The Affordable Loss Principle.

An entrepreneur does not focus on possible profits, but on the possible losses and how they can
minimize those losses.

The Crazy Quilt Principle.

Entrepreneurs cooperate with parties they can trust. These parties can limit the affordable loss
by giving pre-commitment.

The Lemonade Principle.

Entrepreneurs will look at how to leverage contingencies. Surprises are not necessarily seen as
something bad, but as opportunities to find new markets.

The Pilot-in-the-plane.
In this stage, all the previous principles are put together. The future cannot be predicted, but
entrepreneurs can control some of the factors which determine the future.[35]
41
STRATEGY MIX
The strategy matrix (developed by Katarina Segerståhl)[35]
represents the business life cycle in this day and age. In the
typical business life cycle model, it is documented by 7 stages on
a linear graph, documenting complexity of the organisation pivoted
against the company’s maturity over time. However, this matrix
demonstrates a more accurate representation of businesses today
since companies are no longer stagnant with only one specific

Predictability of circumstances
product offering. Survive by Grow by optimizing
differentation and scaling
Thus, the strategy varies at different phases of operations, and are MERG
highly dependent on the 2 axis of predictability of circumstances, E

and complexity of organization. Businesses can operate in a cyclical

loop throughout their life cycle, and apply the effectuation process

SCALE
by adopting entrepreneurship practices within, to constantly keep

E FF
IC
AT
FY E
S I M P LI
This matrix consists of four levels;
1. Grow by divergence and regeneration Grow by divergence Survive by buffering
2. Survive by differentiation and regeneration and transforming
3. Grow by optimizing and scaling
4. Survive by buffering and transforming

To constantly stay relevant, businesses need to take action when

they find themselves in a sticky situation; to scale, merge, efficate
or simplify their business. [39] Referencing both the effectuation Complexity of organization
theory and strategy matrix model, we take a look at how this can
been applied to both Amazon and Ninja Van. As seen in the matrix
above, we’ve placed both companies in different quadrants based on
our prior analysis.

42
4.2. HOW DOES THIS AFFECT THE 2 COMPANIES?
AMAZON
Based on our analysis, it appears that predictability of the market
is low in general, and because Amazon aims to be “the everything
store”, they are anticipating the next trend by diversifying its
portfolio in all areas to stay relevant. However, rather than trying
to minimize their losses; they seem wasting resources by jumping
right in without consideration of failures- launching new products
to the market without identifying whether there is market or not.
This strategy is uniquely Amazon, since the economies of scale of
only a conglomerate giant offers this kind of luxury. However, our
team also finds that this presents an opportunity for Amazon to
relook their current portfolio and determine which aspects they
should focus on. By leveraging on a clear differentiation factor after
scaling down, they will then be able to secure a clear market share
with their selection.
43
NINJA VAN
On the other hand, Ninja Van is securely in the “grow by optimizing and
scaling” quadrant. Operating in a field of last-mile delivery enables
high predictability with the exponential growth of E-commerce,
especially in the Asia-Pacific region. As they are able to anticipate
the upcoming trends and needs of the market with clear signs of
progress in this direction, Ninja Van is constantly looking for new
innovations to optimise their operations. However, their plans
to expand in the region add the dimension of complexity to their
business, and may result in a loss of focus. While there is stability
in their current operations, Ninja Van should also start looking into
transformation and development- anticipating the potential actions
they could take should there be unforeseen circumstances.
4.3. MEGATRENDS
According to Demos Helsinki, in the years to come, the four
megatrends that will influence all innovation are:
Changing Population: Not only will the life-expectancy increase
worldwide, the ratio of worldwide population will also change. In the
next few years, the focus will be in the African and Asian markets
rather than European or American. This trend will push companies to
conquer markets with different culture, preferences and behaviours.
Post-individualism: People want to take part and take charge within
communities and societies. Social media has made it possible for
users to have more power to make their voices heard, and the power
to influence and effect change.
Digitalization: Digitalization has changed our way of living for the
past few years, and for years to come. With the rapid growth of
this trend, our lives will experience constant change as we keep up
with new technologies (automatization, robotic, smart home etc.).
This has, and will continue to influence the way people behave and
interact.
Global Economy: This trend had changed and diversified our way of
business dealings in the world. This has also pushed the development
of logistics and distributions methods and tools to provide products
and services around the world.
In the case of Amazon and Ninja Van, these megatrends will help to
44
them to predictively understand the landscape of future needs, and
to provide new solutions.
While Amazon might be well-known around the world, there are still
many untapped markets that they have yet to reach, especially in
Asia and Africa. However, as we elaborate further below, they should
better understand their future customers’ needs and culture to be
able to conquer the untapped markets.
In the case of Ninja Van, they have already positioned themselves in
the future market, predicting and forecasting the However, these
megatrends are only a prediction and are rapidly changing in this
volatile state of things, thus Ninja Van needs to constantly stay
updated with the global context, in order to anticipate next steps for
development.
A key trend that may influence both companies is that of “Post-
Individualism”. With the power of social media bestowed on
consumers, both companies should be aware of this trend, and pay
more attention to the needs of their customers. Amazon visions has
always been “to be the earth’s most customer-centric company” and
we can see that from their excellent customer service. However,
there should be more user- involvement when it comes to the design
of their products and services. On the other hand, Ninja Van should
also be wary of the differences in cultures across the region as the
needs could differ and produce varied results from what they have
already experienced in Singapore.
4.4. AMAZON: FUTURE CONSIDERATIONS AND SUGGESTIONS
Through our analysis, it is clear that Amazon sees Alibaba as a
benchmark, as they have successfully gained monopoly of the entire
ecosystem- from retailers to last-mile delivery. However cultural
and context differences are an issue that Amazon cannot overcome
easily, especially globally. Thus, we identified the following areas in
which Amazon could potentially consider to develop further:
1. User- Involvement in the Innovation Process: Rather than
trying to conquer new markets at random, if product development
is an aspect that Amazon is key on expanding, they should improve
on their innovation process in order to offer better products and
services to their customers. By involving users early enough in the
innovation process, they could potentially improve and produce
better products, rather than launching products to market in attempt
to secure market share. This allows Amazon to prevent unnecessary
failures in the future.
2. Focus on Differentiation: Another challenge for Amazon is
to deal with all the new diversified sectors that they have already
45
acquired. Rather than over-diversifying their portfolio, Amazon
should carefully consider their acquisitions in relation to the overall
value they bring to customers. With a clear strategy and development
direction, Amazon would easily be able to conquer markets of choice.
3. Keeper of the Ecosystem: In addition, instead of trying to
compete in aspects that they lack expertise in, why not leverage
on the companies they have already acquired and enable them to
strategically contribute to the ecosystem? After all, the key resource
that Amazon has, is the data that surrounds all the innovations.
4. E-Commerce as an Enabler: Rather than a source of profit,
E-Commerce could be a means to an end for Amazon. By identifying
markets and creating infrastructure models that integrate directly
with Amazon’s logistical strengths, the real money for Amazon
could be in strategically acquiring companies that act as a face to
the business. Successful attempts of this concept include Amazon
Go and brick-and-mortar Amazon bookstores. [35,36]
4.5. NINJA VAN: FUTURE CONSIDERATIONS AND SUGGESTIONS
In our analysis, Ninja Van has proven to be a startup with clear direction
and a good development plan. It is apparent that their business
model achieves all aspects of viability, desirability and feasibility,
thus our team did not have suggestions for improvement to the
current situation. However, we foresee that the company’s plans for
expansion will encounter obstacles and that the megatrends of the
future could also pose challenges. Thus, the following considerations
may be vital in evaluating the following steps once Ninja Van has
found footing in the region.
1. Globalisation: As mentioned before, issues faced in other
S.E.A countries are not as simplistic as Singapore or Malaysia,
leaving more logistical issues for Ninja Van (i.e. how do you deal with
logistics in Indonesia & Philippines when there are so many small
islands? What means of transport will be used then and how to create
46
that transport system?) These are factors that greatly influence the
success of the company, on top of the fact that user’s behavioural
patterns would differ from country to country.
2. Expansion & Differentiation: Model is easily imitable by
corporations with large influence & resources, how will Ninja Van
then constantly stay ahead of the curve to prevent being ousted?
Will technology always be a solution to the problem, or what other
means can they provide differentiation?
3. Strategic Partnerships: At current, it appears that the
partnerships are primarily on the tech front. However, in view of
expansion, are there potentials to collaborate with local transport
companies?
5. CONCLUSION
The main difference between startups and large organizations is that
the challenges faced are different. Small- and medium-sized firms
often face problems like: limited capital, lack of human resources,
poor product development, and vague innovation processes. One of
the critical differences between corporations and startups is that
while existing companies execute a business model, startups look
for one. [39].
As a big corporation, Amazon has the resources and there is room
for error and possibility to absorb failures much better than start-
ups. Amazon has a culture of innovation and they are willing to try
everything and anything because they have the needed resources to
“launch fast, fail fast”. Amazon is world-renown company and they
already have an established customer base. That makes it easier for
them to launch new products and services; as there will always be
an outlet, even if there is a low pick-up rate.
Amazon has extensive network for bouncing around new ideas.
They can afford to save their new ideas for the future, and wait for
the right time to launch them. On the other hand, we found out that,
despite Amazon tends to be “the most customer-centric company
in Earth”, their “customer-centricity” actually refers to customer
service rather than innovation. Their strategy seems to be gaining
customers by excellent customer service, not with excellent user-
centric innovation.
47
As a startup, Ninja Van has more flexibility in their business. They
can change their course faster and test out new directions. With
user needs at the heart of their solutions, they can also easily test
out specific innovations that are pertinent to their growth. For Ninja
Van the innovation process is important, as they need to seek every
possible way to grow and support their business before they are
being replaced. Thus, Ninja Van needs to be more aware and careful,
since they have limited resources and networks. They also don’t have
existing databases and market research resources, which makes it
harder for them to launch new products or services- this is also why
expansion may prove to be more difficult for them than foreseen.
However, Ninja Van has been effective in small-scale testing and
validation, and this could prove to their advantage as they constantly
iterate and improve their processes.
In conclusion, we found that both models have their strengths and it
is crucial that both companies recognize the perks of their operations
to leverage on them respectively. In both companies, the element of
Design and Innovation are present in their strategy, albeit in different
aspects. The methods of strategy execution clearly points to the
differences in the economies of scale and availability of resources-
this directly translates to the sustainability and scalability models
that we set out to analyse, in relation to how the strategies have
evolved over time.
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