(Tiểu luận) final assignmentanalyse the competitive advantage between technology based taxi firms and traditional taxi firms

Human According to figures reported by Grab in 2018, the company has about 175,000 active drivers excluding employees from offices and is the company with the largest number of drivers i

FOREIGN TRADE UNIVERS

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FINAL AS FINAL ASSIGNMENT SIGNMENT

Analyse the competitiv

Analyse the competitive advantage e advantage e advantage between technology between technology between technology-based -based

taxi firms and tr

taxi firms and traditional taxi firms aditional taxi firms

Students name: Lê Gia K Students name: Lê Gia Khoa hoa Student ID: 2105002152 Class: F-UOB-13B Intak

Intake: K60 e: K60

Instructor: Nguy Instructor: Nguy n Minh Nguyên ễ n Minh Nguyên

TTTTTable of Contents able of Contents

FFFFFore ore oreword word word 3

I Introduction abou I Introduction about Gr t Gr t Grab ab ab 3

1 General information about Grab 3

2 Resources and Capability of Grab 3

3 Grab’s Porter Value Chain: 6

4 SWOT analysis of Grab 6

5 Porter five forces model of Grab: 8

6 PESTEL model of Grab 9

II Introdu II Introduction about Mai Linh ction about Mai Linh ction about Mai Linh 10

1 General information about Mai Linh 10

2 Mai Linh’s Porter Value Chain 11

3 SWOT Analysis of Mai Linh 11

4 Porter five forces model of Mai Linh 12

5 Pestel model Mai Linh 13

III The competitiv III The competitive adv e adv e advantage between techn antage between techn antage between technology ology - ology based taxi firms and tr based taxi firms and traditional taxi firms aditional taxi firms aditional taxi firms 14

IV IV Conclusion Conclusion Conclusion 15

VV VV REFERENCE LIST REFERENCE LIST REFERENCE LIST 16

FFFFForeword oreword

Domestic transportation services in Vietnam are facing fierce competition with foreign transport providers in the context of the 4.0 technology revolution In particular, the taxi service in Vietnam is currently most clearly affected Grab and Uber respectively appeared in the Vietnamese market in 2014 This is a new type of service that provides online transportation through the use of location-based service (LPS) technology, GPS (Navigation System) global location) and driving via mobile device The operation criteria of Uber and Grab is to take advantage of the available personal vehicles (cars, motorbikes) of people in their free time to participate in passenger transportation In short, this service has created many changes in the market and caused a lot of controversy In fact, technology

transportation services have a more competitive advantage in reducing costs, creating diversity and serviceability Many customers choose to use technology instead of traditional transportation services This essay takes two taxi firms, Grab and Mai Linh, as two representatives to analyze competitive advantages and make recommendations for two services in the taxi industry

I

Introduction Introduction about Grab

1 General information about Grab

- Grab (formerly known as GrabTaxi) is a technology company providing transportation and commuting services based in Singapore.Established in 2012, Grab has now expanded the market and is present in 8/11 countries and nearly 200 cities in Southeast Asia In Vietnam, Grab was officially present on the market in early 2014 and is now a familiar application for many Vietnamese

2 Resources and Capability of Grab

+) Re

+) Resources of Grsources of Grsources of Grab ab

Resource(s) Illustrative example

Tangible Grab provides

online-to-offline services in the most number of cities across Southeast Asia, with a presence in over 500 cities and towns In Vietnam, Grab has been present in

Grab's strategy is to expand the network to all cities in Vietnam With coverage in major cities, Grab is the brand with the largest recognition in the whole of Vietnam, thereby increasing

35/63 cities including major cities such as Hanoi, Da Nang and Ho Chi Minh

revenue and attracting more new customers for the company

Intangible Brand: The Grab brand, and

the loyalty it engenders, is Grab’s most valuable asset

The Harley brand forms the cornerstone of its strategy Grab's core value is ''Make every day better''

Human According to figures

reported by Grab in 2018, the company has about 175,000 active drivers excluding employees from offices and is the company with the largest number of drivers in the technology taxi industry

Drivers play the most important role in Grab, the company's revenue comes mainly from profiting and deducting from each ride the driver completes

+) Capabilities of Gr

+) Capabilities of Grab ab

Function Illustrative capability

Engineering - Manage Grab application on Android and

IOS platforms

- Support work related to website design, intranet, domain, hosting, internal website management, email and related issues

- Receive information on customer trips and services and transfer to the nearest driver with empty cars, to service stores

Customer service - The customer experience is always

prioritized on every journey Because of the demands and tastes of clients, Grab is always adding services to fulfill them, such

as "Silent ride" service or assisting customers in an emergency by providing an additional emergency phone number Furthermore, dissatisfied consumers may

Firm Infr

Firm Infrastructureastructure Grab has become the leading super app in the

market and the first choice of people when they need a car to move

Human Re

Human Resource Managementsource Managementsource Management Building a future-ready workforce by training 20,000

students through talent development initatives There are always attractive

incentives to attract new drivers

TTTTTechnology echnology echnology In March 2017, Grab announced the opening of additional R&D centers

in India and Vietnam Grab will invest $500 million in Vietnam over five years to

develop financial technology (fintech; mobility) and logistics solutions

Procuement

Procuement In March 2018, Grab acquired all transportation connections

including taxis and other services

Inbound

Logistics

A large number

of drivers are

selected through

many rigorous

processes

Operations

Grab application

provides

e-commerce

exchange

services in the

transportation

and express

delivery

industry The

application helps

to connect

between

transport service

providers and

customers

Outbond logistics

In 2022, Grabcar has operated in 34/63 provinces, including 3 big cities such as Hanoi, Da Nang and Ho Chi Minh

Marketing and Sales Marketing mix(4P): focus

on products, pricing strategy, diversified distribution channels, creativity in communication

Carrying out many promotional campaigns and volunteering to contribute to the community

Service

If customers or partners have problems, they can contact directly via Grab's hotline number or by the chat feature on the application

contact Grab's call center 24/24 Marketing and distribution - Enhanced retail service: Grab's marketing

activities are always at the forefront, brand advertising signs are always placed in centers and crowded areas In addition, on the application, there are always discount codes for users to attract more customers, increase competitiveness and create resources for the company

Operations To succeed in operations at Grab, they must

immerse themselves in the market so that they can experience the painpoints of their customers and partners

3 Grab’s Porter Value Chain:

4 SWOT analysis of Grab

Strengths: Strengths:

Grab, a leader in ride-hailing technology, joined the Vietnamese market in 2014

- The market's largest customer and driver base make it the leader at the moment (Grab ride-hailing accounts for the largest number of customers and drivers in the market) ABI estimates that in the first half of 2021, Vietnam held a 73% market share

- Due to the parent company's substantial financial resources (Grab Holdings Inc.), communication strategies are simple to put into action

- All brand identification elements are employed in the recognizable green hue, which is widely regarded

- Strong market presence across a variety of industries (car, taxi, bike, food, delivery, etc.)

- Safety level is rated as being greater than that of rivals

- Clear, visible driver and vehicle information with no purchase account status

- Clearly indicate the quantity of cars present in the consumer area to assist customers in selecting the swiftest vehicle

- Establishing a customer rating system (customers ranking) to retain the company's devoted clientele

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- The "booking a car" service offered by the Grab switchboard

- Support other payment options

W

Weaknesseakness

- The app is rather large (700 Mb on IOS and 100 Mb on Android)

- More expensive than competitors, fewer discount coupons

- In certain locations, a lack of drivers is caused by the inability to regulate the time and

location of the driver's operations

- Driver control is still relatively lax, and drivers occasionally have negative attitudes

- The time of day and the weather affect rates

- Loyal customer care initiatives have lacked emphasis

Opportunities

- After the Covid-19 pandemic had an impact on customer behavior, demand for online

delivery and payment spiked

- The number of smartphone users is rising, and even young children now have them (as a result of online learning during the epidemic)

- The contactless payment technique will boost Grab's Moca earnings

- Wifi is becoming more and more common in Vietnam, and prices for 4G and 5G are very reasonable

Vietnam's population is structured like a golden pyramid, therefore there are a lot of

prospective Grab consumers there

Threats

- There are a lot of rivals in the Vietnamese market, and they all offer low pricing and a

variety of discounts

Grab was involved in a legal dispute with the Vietnamese government

- Financial disagreements between Grab and the driver include raising the discount rate, fees, and paying taxes

5 Porter five forces model of Grab:

Industry riv

Industry rivalry:alry:

- Entering the market with great ambition, Grab implemented an acquisition strategy when it acquired all of Uber in Southeast Asia However, the competition for ride-hailing services becomes more intense as more and more other applications are launched

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- In a potential, exciting but equally fierce market like Vietnam, Grab has captured more than 70% of the market share by 2021 About 30% of the remaining 30% is divided among Gojek, Be and other companies another ride-hailing app

- With tremendous growth, many investors flocked to Grab and Grab's competitors such as Mai Linh, Be, GoViet (later GoJek) However, few automakers become influential, due to problems such as lack of capital and human resources, no technology

Bargaining power of buye

Bargaining power of buyers: rs:

- It can be said that the bargaining power of Grab customers is quite high This application has good customer service and often, quickly resolves customer needs

- Customer feedback is received by Grab and continuously improves products and services accordingly

Bargaining power of suppliers

Bargaining power of suppliers:

- Grab is an intermediary application between customers and drivers, so the activities of drivers are considered as a condition for the company to develop

- When entering the Vietnamese market, there were many times when Grab changed its policy, causing many drivers to strike and protest by simultaneously shutting down the app For example, in 2020 when Grab decided to increase discounts or change policies

- After the incident, Grab also said that the company had carefully considered to propose a new suitable fare, and at the same time, deducted the 10% VAT obligation from the trip fare that the user was spending paid to reassure public opinion

- However, Grab is still a market-dominating environment, and many people perceive Grab drivers as a part-time profession with a plentiful supply of drivers As a result, the pressure and negotiating strength of the drivers is insufficient for a growing and dominant firm like Grab

Threat of substitues:

- Ride-hailing applications like Grab have a lots of potential to develop in the near future The developing public transportation infrastructure in the major metropolis, including bus, elevated rail, and subway systems, may pose a challenge to Grab's products Furthermore, the recent drop in automotive tax in Vietnam has resulted in much lower car pricing and greater access to four-wheel drive

Threat of new entr

Threat of new entrants:ants:

- Grab continues to dominate the Vietnamese ride-hailing business Vietnamese car applications appear to have "disappeared" in recent years, giving way to international companies that are both powerful in cash and strong in technology According to a Google and Temasek research from the end of 2020, the size of Vietnam's ride-hailing application industry is over $500 million USD, with an annual growth rate of more than 40% This playground might be worth $4 billion USD by 2025

6 PESTEL model of Grab

1 Legal fac

1 Legal factortor

Grab has both rights and obligations in the Vietnamese economy These rights and obligations compel Grab to operate in conformity with the law and the Vietnamese market The Ministry of Finance has issued proposals to collect tax more fully for this company's business model, preventing tax losses and damaging the public budget Furthermore, restrictions on user information security, enhancing safety and network security to avoid leaking of personal information force enterprises using this model, including Grab, to participate in stringent implementation The current business model of applying

transportation technology services is growing the tension between the new and old business models; changing the usual operation mode and mechanism As a result, state policies will both stimulate development and modify and manage more severely

2 Economic fa

2 Economic factorctor

Grab continues to support economic development and community development by introducing over 680,000 small-store partners to the platform and training over 780,000 driver-partners through GrabAcademy In 2021, Grab's partners earned $8.9 billion using the platform, a 24% increase over 2020 Grab also provided $20 million from its GrabForGood fund to give partners with free COVID-19 vaccination

3 Social fac

3 Social factortor

Vietnamese people rarely use public transportation and prefer to travel by private means, particularly motorbikes Statistics show that there were more than 45 million motorbikes and motorbikes in Vietnam in 2016 Currently, motorbikes are used by 85% of Vietnam's population for both mobility and earning a living According to a survey conducted to estimate the percentage of vehicles in a vehicle line, up to 85.8% of vehicles are

motorcycles, while 12.3% are automobiles

4 En

4 Environment fvironment factorvironment factor