Ofelia Prado-Merida

BUS 497A

GRAB

1) Considering the PESTLE and 5 Forces frameworks, explain how Grab was able to find an
opportunity to defeat Uber.

Grab was able to find an opportunity to defeat Uber by strategically basing their ride-
share services on TRUST. Initially, in 2012, Easy Taxi was Grab’s (formally known as
My Teksi) competitor, but they were no match for the quality of customer service that
Grab provided to the Malaysian community. By the end of 2014, Grab had expanded to
21 cities in Southeast Asia, and Uber became one of its greatest competitors. Grab never
lost sight of their hyper-local approach, catering to the local communities by solving the
needs of each city they operated in. For example, knowledge of culture, language,
commuting problems - which ignited the motor-bike craze, cash handling, etc.
Threats of new entrants can be high, as customers can easily switch to other ride-share
services, however, the government approvals required to start the busines can be lengthy
and rigorous.

Political: Grab was legalized by the Malaysian Gov. in 2017

Economical: Creating job opportunities,
Socio-cultural: Creates new forms of transportation for communities
Technological: App based - trains all of their drivers on how to use the app. Allows for
customers to get rewards through app. Allows customers to upload funds onto their app.
Legal: Grab was/is frowned upon by local taxi drivers
Environmental: Reduces carbon footprint by encouraging ride-sharing.

2)  What are some of the strengths of Grab?  Do they have a core competence?  Explain using the
VRIN.  What are the performance implications for Grab?

Grab has many strengths; they are one of the biggest tech startups in Southeast Asian Countries.
Grab is customer focused and provides trusted service to their customers. Grab has customized
their company to provide different ride services, according to the needs of their customers, cars,
motor bikes, busses, etc. Grab acquired Uber’s Southeast Asian operations, their biggest
competitor.

Grab’s Core Competencies include “The 4 H’s”. Heart and humility to serve, the hunger to
execute and bring ideas to life, and the honor to keep their word.

Valuable: The brand name and image contain high integrity and is trusted throughout Southeast
Asia.
Rare: Grab has adapted to the communities/cities/countries that it serves by customizing their
services to fit the needs of that specific region.
Inimitable: Grab is dominant in Southeast Asia; therefore, they have controlled operational cost.
Non-Substitutable: Grab is advanced in their technological integration, which is one of the
reasons why they have attracted many customers. Grab also has superb employee training.

The performance implications for Grab is to continue to provide a service that can meet their
customer’s daily needs, and continue to evolve and advance as new needs arise, all through the
ease of a convenient app.

https://fod-infobase-com.libproxy.csun.edu/p_ViewVideo.aspx?xtid=210565

https://seoaves.com/grab-business-model-how-grab-makes-money/

https://carlogabriell.medium.com/grab-revealing-the-three-keys-successes-of-outperforming-the-
u-s-2c4d4c804421