Structure and Competiveness of Go-Jek
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GROUP ASSIGNMENTSTRUCTURE AND COMPETIVENESS OF GO-JEK[pic 1]Name：MaryaamAryaaYashwin SherwaniID：0333577Subject name: Managerial EconomicSubject code: ECN70204Lecturer: Dr. Maryam MoradbeigiTable of ContentsIntroduction 1Nature of The Product 1Product Differentiation 1Body 2Market Concentration 2Barriers 2Vertical Integration 2Pricing Power 3Market Competitiveness 3Diversification and International Operation 4Economic Objectives or Goals 4Managerial Problems 6Porters Five Forces 7Market Structure of Gojek 10Price Elasticity of Demand 11Price Determination 11Price Competition 13Gojek’s Strategy to Attract and to Increase Consumer’s Demand for its Services 14Conclusion 15References 16IntroductionNature of The ProductGo-Jek started as a motorbike ride-hailing mobile service, it has progressed into an on-demand mobile platform and a cutting-edge app, offering many services; food delivery, transportation, mobile payments, logistics and so on. Product DifferentiationGo-Jek provides various services from massage to grocery delivery. Go-Jek started a service named Go-Car, which is like the service of Uber. Go-Jek has also get to in digital payment, which became a path for making engagement and customers loyalty. Go-Jek is different from its competitors by providing many different services which includes G0-Glam, Go-Auto (car repairing), Go-Tix (event ticket booking), Go-Massage and Go-Clean. In addition, Go-Jek now has more than 200,000 drivers and perform trucks, motorcycles and cars and trucks (Benzinga, 2018).BodyMarket ConcentrationGo-Jek as local ride-hailing beats the international competitors Grab and Uber in Indonesia. Grab, Uber and Go-Jek offer various transportation options in Indonesia such as regular taxis, motorbikes and cars. However, Grab and Uber tested with food delivery, but the way Go-Jek connect with restaurants is more progressive, while providing additional services which its rivals don’t cover. Therefore, Go-Jek has almost 10 million weekly active users, almost 40 million downloads of the application (Techinasia.com, 2018).
BarriersConservative taxi and motorbike taxi drivers are unsatisfied by the Go-Jek as it is weakening them, threatening their incomes and oversaturating the market. There has been fight in some of the cities between conventional taxi and motorbike drivers and Go-Jek drivers. Go-Jek drivers with the fear of conflict refuses to wear the company uniform and avoiding the routes where conservative taxi drivers wait for passengers for distress that a fight could happen (Inside Indonesia, 2018).Conflict moved to peak levels. Go-Jek drivers attacked the group of conventional taxi drivers by throwing rocks and sticks. Moreover, Go-Jek facing barriers from conservative motorbike taxi drivers urging the government to ban the Go-Jek application. There were pressures sometimes consequential in physical violence between these drivers (Novák, 2017).Vertical IntegrationGo-Jek is driving vertical integration through its 12-different business. Go-Ride is Motorcycle transportation service which take customers to different locations which is more convenient while providing satisfaction for them. places. Go-Car is a Car transportation service. It has speed and many facilities and customers can select the type of car and so on. Go-Food provides food delivery with 30,000 restaurants in their list. Go-Send is immediate messaging service, enabling users to send goods, mail and documents within 60 mins. Go-Mart is a service which allows customers to do immediate shopping from many shops near to the app users. Go-Box is a service to move goods through van, truck or lorries. Go-Massage is a massage health services provided directly to the user’s home. Go-Clean is a cleaning services to clean home, and office. Go-Glam is a beauty treatment services for a waxing, manicure-pedicure, and so on, to the user’s home. Go-Tix is an information service and enabling customers to buy event tickets and delivering that ticket to the customer’s home. Go-Busway is a service to screen the bus service timetable and ordered. Go-Pay is a e-wallet service for the transactions within the application. Go-Med is an integrated service between Go-Jek and HaloDoc, enabling customers to buy medicines. Go-Auto is towing, emergency, car care services (Shettigar, 2018).Moreover, SMEs, for instance, producer of herbal drink in Bandung uses Go-Jek to deliver herbal drink to their Bandung customers (Novák, 2017).Pricing PowerPricing Power is the firm’s capability to raise their prices over time. The Go-Jek has ability to raise the price for its services without affecting its demand. As Go-Jek is unique and offers many convenient services for the customers which Uber and Grab are unable to do so. Therefore, Go-Jek has a high pricing power (Aseantoday.com, 2018).Market CompetitivenessMarketing Competitiveness is the capability of a firm to continuously improve marketing procedure competences and provide better value to consumers than their competitors. Go-Jek add more value for its customers and reach a position of relative advantage. Go-Jek has advantage over Grab and Uber by offering better service, value and quality.