Grab Answers MGCR 331

1. (3 points) How has Grab achieved growth spurts through strategic pivoting? What factors are essential for successful pivoting? In the beginning, Grab created an app that taxi companies could use to manage order requests more efficiently with the potential to reduce their processing times from 30 minutes to 3 minutes. However, most taxi companies were not interested in using Grab’s program. After that (by 2012), a large competitor named Taxi Monger invested in lots of advertisements to promote their new app. An app that will directly connect customers with taxi drivers (bypassing taxi companies). This new competitor forced Grab to change its strategy and develop a new app that could work as its competitor. This change of strategy is called pivoting because Grab change the feature of its product (helping taxi drivers to manage orders efficiently) into the product itself (an app that connects customers with taxis directly). Grab’s strategy was to launch the first version of its app into the current market so users and suppliers can interact with it a