Strategic Management

Member :
Shelly Amelia 3134011
Edwin Reinaldy A.W 3134012
Renaldi Ega H. 3134018
Anita Felicia 3134020

International Business Networking

Business and Economic Faculty
University of Surabaya

Introduction
GO-JEK is a transport company from Indonesia to serve the transportation of people,
goods, food, as well as the latest services that are still in trials such as Go-Clean, Go-Massage,
etc. by motorcycle taxi. The company was founded in 2010 in Jakarta by Nadiem Makarim. GOJEK services available in Jabodetabek area, Bali, Bandung and Surabaya. By June 2015, GOJEK application has been downloaded 400 thousand times in the Google Play on Android
operating system. Today there is for iOS on the App Store.

Company Overview
Congestion outstanding in big cities in Indonesia is increasingly alarming. Various means
have been taken by the government until now has not been able to overcome the existing
bottlenecks. Activity and high mobility in large cities clear congestion is a major obstacle. The
number of vehicles unbalanced growth with increasing road congestion is certainly made worse.
Public transportation are also not able to provide an adequate solution.
The congestion problem turned out to bring the idea of a person to open a business. With
his experience while riding motorcycles on the streets are jammed. Nadiem Makarim then
created the Go-Jek, a shuttle service with a modern motorcycle-based order. Motorcycle taxis,
which are two-wheeled motor vehicle is indeed a very effective transport for mobility in city
traffic.
Nadiem are some people who never felt the effectiveness of the motorcycle. PT. Go-Jek
Indonesia that was founded in 2010 now has a fleet of 1,000 taxis that are scattered throughout in
the Jakarta area. Every day Go-Jek can serve more than 150 personal orders, not including
corporate orders.With the rapid development of this, Go-Jek through its Director Managing
Nadiem Makarim has gained achievements as a champion of business competition 1 in Global
Entrepreneurship Program Indonesia (GEPI) in Bali.

Go-Jek began serving telephone taxi booking via the call center, call center operator will
then search near by Go-Jek driver. Then assign drivers to pick up customers while monitoring
the arrival of drivers with a navigation system and the coordination of the customer.

Nadiem did not want half-hearted in developing business startup once this social mission. In
addition to providing a means of applying the technology of the call center, he also gave a
smartphone to his motorcycles taxis partners as a means for customers to accept calls. He also
did not hesitate to facilitate a full set of road safety (safety riding) for its partners, namely in the
form of a jacket and green helmet SNI and bearing the Go-Jek. It is also at the same time in order
to meet the needs of corporate branding.
Saw an opportunity when the rise of smartphone users, Nadiem also innovate by
launching Go-Jek mobile application for smartphone users in facilitating the booking taxis.
Mobile app was also brought positive changes. From originally only has about 300 partners
motorcycles, Go-Jek now have recruited thousands of partners who scattered in the region
Jabodetabek, Bali, Bandung and Surabaya. The application also now been downloaded by more
than 400 thousand times.

SWOT Analysis
Strength
As one of the pioneer, Go-jek have advantage of broader network of driver compared to
GrabBike. As local startup, they have high brand recognition and better understanding of the
local market. Go-jek multiple service option can be considered as strength as it make them as
good option for its customer. Go-jek food delivery, shopping, and express courier service are
very popular and could be a major source of income in the future. For further the recently added
cargo forwarding service, cleaning service, beautician service, and massage service are the new
promising services all of which had huge enthusiasm from the customers.

Weaknesses
Although Go-jek strength can create barrier of entry but those barrier can easily
overcome with large capital spending. GrabBike is a perfect example, they managed to be strong
competitor because they are able to spend large amount of money for incentive and promotion.
Moreover, many complaints about the apps of Gojek which often crash could be considered as
weaknesses because many found this problem rather disappointing. Furthermore as we
acknowledge in the recent time, Gojek rules and terms of service are heavily favoring customers
and left many risk for driver, for instance, customer who ordered a bulk of delivery and cancelled
the order when the driver had all the delivery en-route.
Opportunity
Go-jek food delivery service (Go-food) is one area that Go-jek need to plan seriously as it
could be a good source of income. Outside the current on demand delivery service, Go-jek can
implement promotional/advertising system so their food partner can promote their product as
well. Courier service is another line that they need to focus. This is an ideal service for corporate
client that need reliable courier service. Using similar idea and apps, Go-jek can also expand to
other vehicle booking service.
Threat
Major threat for Go-jek is coming from government regulation as their business is on a
grey area as it is unregulated. But this threat is minimal because there is small chance for the
government to regulate Go-jek service as they need to regulate other Ojek service as well.
Competition is also a concern for Go-jek, as capital is the only barrier of entry. Additionally,
traditional ojek drivers could also be a threat for gojek.

IFAS Analysis
Strengths:
1. Broad driver network
2. High brand recognition
3. Local market knowledge
4. Multiple service
5. New services (cargo forwarding, beautician, cleaning service)
Weaknesses:
1. Strong competitor (Grab Bike)
2. Easy to copy
3. Undeveloped apps
4. Rules and TOS only favor customer

STRENGTHS
S1 Broad driver
network
S2 High brand
recognition
S3 Local market
knowledge
S4 Multiple service
S5 New services
(cargo forwarding,
beautician, cleaning
service)

Weight
0.15

Rating
3.0

Weighted Score
0.45

0.35

3.0

1.05

0.15

2.0

0.30

0.25
0.10

3.0
2.0

0.75
0.20

1.00

2.75

WEAKNESSES
W1 Strong
competitor (Grab
Bike)
W2 Easy to copy
W3 Undeveloped
apps
W4 Rules and TOS
only favor customer

Weight
0.25

Rating
3.0

Weighted Score
0.75

0.20
0.30

2.0
3.0

0.40
0.90

0.25

2.0

0.50

1.00

2.55

EFAS Analysis
Opportunities:
1. Partnership creation with food vendors or corporations
2. Advertising opportunities
3. Expansions to another vehicle means
Threats:
1. If got regulated by law
2. Low market barrier (others could easily be newcomer)
3. Threat from conventional ojek
OPPORTUNITIES
O1 Partnership
creation with food
vendors or
corporations
O2 Advertising
opportunities
O3 Expansions to
another vehicle
means

Weight
0.35

Rating
3.5

Weighted Score
1.225

0.35

3.5

1.225

0.30

2.0

0.6

1.00

3.05

THREATS
T1 If got regulated
by law
T2 Low market
barrier (others
could easily be
newcomer)
T3 Threat from
conventional ojek

Weight
0.30

Rating
2.0

Weighted Score
0.6

0.35

3.0

1.05

0.35

3.5

1.225

1.00

2.875

SFAS Analysis
Strategic Factors

Weight

Rating

Short

3.5
2.0
2.5

Weighted
Score
0.70
0.1
0.3125

S2 High brand recognition

S4 Multiple service
W1 Strong competitor (Grab
Bike)
W3 Undeveloped apps
O1 Partnership creation with
food vendors or corporations
O2 Advertising opportunities
T2 Low market barrier
(others could easily be
newcomer)
T3 Threat from conventional
ojek
Total Scores

0.20
0.05
0.125
0.175
0.1

3.0
3.0

0.525
0.30

0.1
0.125

3.0
3.0

0.30
0.625

0.125

3.0

0.625

1.00

3.4875

Interm
ediate

Long
X

X
X

X
X

Recommendation
Go-Jeks strategy so far has been a huge success in Indonesian market. But for continuous
success, there are some available recommendations for Go-Jek
1. Create interesting offers for traditional ojek drivers for them to join Go-Jek network. This
will eliminate threat from traditional ojek drivers.
2. Most Go-Jek newly launched services are based on customers needs, thus it is very
important for Go-Jek to continuously ask customers about what they need. An online poll
or survey can address this in a quick and affordable manner.
3. Works closely with software developers for their help in designing and patching bugs and
errors in Go-Jek apps.
4. Create a better rules and terms of service that serves both driver and customer a same
favorability.
5. Open up a new partnership possibility with restaurants or other food partners in which
they use Go-Jek solely for their delivery service and in return it will increase more GoJek and food orders.
6. If Go-Jek successfully implement all these recommendations above, entry barrier just got
a lot more difficult.

Conclusion
As a conclusion, Go-Jek has been successful in build a very creative business that have so
many advantages. Nowadays, Go-Jek has found a good opportunity in created a kind of unique
business. Thus, Go-Jek can successfully emerged as a new trend for Indonesian market. On the
other hand, as the new rising star in transportation business, Go-Jek also have several
disadvantages and imperfection, so, Go-Jek have to make some improvements to revise and
refine its shortages. However, this kind of shortages can be surmounted with the progession of
the Go-Jek that in-line with time. Furthermore, Go-Jek has so many opportunities in expanding
its businesses, especially in terms of food delivery and shopping, thus, Go-Jek can continuously
maintain and evolve its business to compete in the hard competition of transportation business in
Indonesia.