Business Planning for Go-Jek's UK Venture

Introduction

A business plan is a formal statement that demonstrates the goal, mission, vision, strategies and operational planning of the particular business. Business plan represents the purpose and direction of the business, that assists the marketers to determine what strategies and operation need to be undertaken for achieving the forecasting goals. This study is going to represent the business planning of Go Jek, the Indonesian technology start-up that specialises in the ride-hailing. This start-up is going to open a new venture of motorbike taxi service in the UK. This study will represent the overall business planning for opening this new venture by Go-Jek.

1.Industry analysis:

Transport industry is one of the fastest growing and profitable market across the world, which assist the new businesses to establish their market footprint into this industry. The motorbike taxi service is one of the innovative transformational facility in this industry that has ever increasing number of customers. This service is highly affordable and time saving for the customers. From the ONS study on UK based transportation industry, it is seen that, ever increasing number of the customer in motorbike taxi service brings opportunities for the transportation business in order to gain the profit and grab large number of customers.

2.Company description:

Go-Jek is famous technology-based start-up headquartered in Jakarta, Indonesia, that specialises in the motorbike taxi service. This is the first Unicorn Company in Indonesia which is also included in the Fortune 50 companies list. Go-Jek has launched the first online motorbike taxi service in Indonesia, which is known as Go-Ride. Based on the financial report in May 2018, Go-Jek has been able to successfully manage more than 1000,000 fleets (www.go-jek.com, 2018).

Business objectives:

As stated by Scarborough (2016), business objective is associated with the proper mission, vision and strategy, that assist the marketers to achieve the business goal. Go-Jek' motorbike taxi service, Go-Ride, has its own objectives, mission strategy. The objective of this company is to open up a new venture of Go-Ride in the UK market. However, to enter into this new market, Go-Jek is going to conduct a new market diversification strategy which will assist the marketers to understand the current market trend and the changing customer demand ion the transportation service. Mission and vision statement of Go-Jek in order to open the new venture of Go-Ride is as follows:

Mission statement:

“Go anyway easily and quickly and hassle-free with Go-Ride”

Vision statement:

“Offers such a convenient transport experience, that can make ride faster and easier”

3. Market analysis:

Description of the market:

Go-Jek is going to open the new venture of its Riding business segment Go-Ride in the UK market. Based on the ONS report, the UK is one of the fastest growing markets for online transportation service. In recent years, the higher price of private taxi service has compelled the customer to shift their preference from the high rate taxi service to the easier and convenient motorbike taxi ride. Uber has also launched its motorbike taxi service in the UK, the Uber Plus, which is highly popular in the UK based cities. Therefore, the decision taken by Go-Jek to open the new venture of its riding service Go-Ride is highly appreciable and relevant to the market trend in the UK transportation market. In UK market, although there are already huge competitors in the motorbike taxi service, Go-Jek would have several; market opportunities to expand its business such as rising demand of the motorbike taxi service, highly skilled drivers, good suppliers and ever-increasing number of customers (www.go-jek.com, 2018).

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Target Market:

Go-Jek is going to target the big cities of the UK such as London, Manchester, Liverpool, Bristol and Leeds. Moreover, it is also going to offer its service to the local rural areas of London. Customer needs to download the Go-Ride application through the mobile phone and put the current location, in order to avail the service (www.go-jek.com, 2018).

Industry analysis:

Porter’s Five Forces model is important to analyse the overall industry statistics of the transportation market in the UK, in terms of assessing the resent condition of the competitors. In this aspect, this analytical tool is used to analyse the UK based motorbike taxi industry, in order to assess the completion threats and opportunities for Go-Jek.

The threat of Substitute Services:

In the UK transportation market, there are several substitute transportation service of motorbike taxi services such as private taxis, meter taxi and electric scooter rental service. Therefore, it can pose severe competition threats to Go-Jek’s new riding venture. In order to deal with this threat, Go-Jek needs to improve the quality and convenience of its riding service, that would attract the customers in the UK market.

Bargaining power of suppliers:

Bargaining powers of suppliers are low, as there are several suppliers or agencies of motorbikes, technical labours and drivers in the UK transport market, that will assist Go-Jek in terms of getting the best vehicle and drivers in reasonable price. This is a positive sign for Go-Jek in opening the new venture in the UK market.

Bargaining power of buyers:

Although the number of motorbike Service increases in UK market with the development and launching of new companies, as compared to the other sector, the number of motorbike taxi services are few (Alasadi and Al Sabbagh, 2015). Although there are alternative motorbike taxi services in UK market, such as Limo Bike, Uber Plus, Uber Moto, etc, there are few customers awareness about this service in the rural areas and suburban cities. Therefore, the buyers bargaining power is medium, which can be taken as the positive sign for the Go-Jek, in order to make the string customer base in the UK market (www.go-jek.com, 2018).

The threat of New Entrants:

Threats of new entrants in the UK transport market is high due to the increasing number of demands, raising a number of customers and an increasing number of different substitute vehicles (Karadag, 2015). Based on this demand, several transportation service companies have been developed in this market. For example, Uber Plus is the newly launched motorbike taxi service in the UK by Uber group, which offers affordable the motorbike taxi service to the cures at an affordable price. Jump is on the famous motorbike taxi service in the UK market that has also established its strong footprint onto the UK transportation market. Therefore, Go-Jek has the chances of high competition threats from the new entrants in the UK market (www.go-jek.com, 2018).

Competitive rivalry:

Competition among the existing companies in the UK market that offers the motorbike taxi services is high, due ever-increasing number of transportations service companies (Rostamkalaei and Freel, 2017). For example, Limo Bike is the UK based motorbike taxi service, which is highly popular among UK citizen. Other highly popular motorbike taxi service in the UK market are Uber Plus, Jump, Uber MOTO, and Passenger’s Bike. Therefore, Go-Jek would have faced severe competition threats from existing rivalries in the UK market. Therefore, Go-Jek needs to prepare its own innovative marketing strategies to compel the customer to choose this brand over the other potential existing companies.

SWOT analysis:

3.The economics of Business:

Characteristics of a successful small business:

As stated by Burns and Dewhurst (2016), small businesses are privately owned and operated ventures that consist of a small number of employees. Go-Jek is the Indonesian startup, that specialises on the ride-hailing service. Go-Ride is the small business segment of Go-Jek which has maintained all the small business characterises that is needed to enter into the new market for expanding the business (www.go-jek.com, 2018).

The value that defines the business objectives:

Go-Jek is a famous Indonesian technology start-up that has its vision and mission to focus on its main business objectives. The decision to open the new venture of Go-Ride in the UK market is going to one of the right and profitable decision for Go-Jek, as its brand reputation is well-known across the world. Throughout the world, Go-Jek is famous for its convenient, safe and easy ride service which makes the customer respect the brand value of this company. Therefore, this would one of the positive facts for this company to open the business venture of Go-ride (www.go-jek.com, 2018).

High-quality service:

According to Mariotti and Glackin (2015), small business needs high-quality service and product that can assist the markets of this business to make a strong customer base. Go-ride, the motorbike taxi service of Go-Jek, has proved itself as one of the most convenient and faster taxi services to the Indonesian people. all the drivers of Go-Ride are highly trained and skilled, who prioritise the customer comfort and safety during the riding. This is another positive characteristic that will help Go-Jek to open up and successfully run the new venture of Go-Ride in UK market (www.go-jek.com, 2018).

High-level customer satisfaction:

Based on the report of May 2018, Go-Ride has managed 1000,000 fleet, which proves it string customer based and long terms customer relationship. Go-Jek focuses on customer needs and comfort in order to provide them with the safest and high comfortable ride. This is why Go-ride is one of the most popular motorbike taxi service Indonesia. This characteristic is useful, in opening the new venture in the UK market, in terms of attracting customers and expanding the business in this new market.

4. Marketing planning:

Go-Jek has established its business footprint in the transportation market of Indonesia with rapid growth and the high market dominance. However, to enter into UK market, it has to make innovative as well as smart marketing tactics to deal with the high competiti9ve threats if the existing and new entrants.

Customer service is the inevitable factors on which Go-Jek is going to focus. For offering the convenient service to UK based customers, Go-Jek is going to developed a highly organised customer call centre and high-skilled informative staffs.

Online promotional events are going to be conducted by the Go-Jek prior in order to make the UK based customer aware of their brand recognition and service information.

The eye-catching design of the Application software of the Go-Ride is another important marketing and promotional strategy of Go-Jek, which will attract the customers towards the highly affordable motorbike taxi service.

Word of Mouth marketing strategy is an essential and highly fruitful marketing strategy, that Go-Jek is going to apply for the UK market. Uber and Limobike have also applied this strategy in order to grab customer attention. In this aspect, Go-Jek will foster its entrepreneurial movers and shakers to promote its brand, product (Go-Ride) and service (motorbike taxi).

Referral marketing is another important and highly effective marketing process, which Go-Jek is going to apply in order to open its new venture of Go-ride in the UK. In this process, Go-Jek will offer free rides to a few selected customers in order to promote its motorbike taxi service.

5.Operation planning:

Business management and operation include the evaluating, monitoring and streamlining the operational procedures, in terms of increasing the production, profits and improve the equality as well as delivery of the goods and service (Scarborough and Cornwall, 2015). Go-Jek would maintain proper business operations and management process in terms of opening the new venture in the UK market, by focusing on the following activities:

Crafting the budget:

According to Storey (2016), each company needs to craft a suitable budget prior to open the new venture, in order to manage the useful utilisation of the revenue in each department. Go-Jek becomes the unicorn start-up in Indonesia in 2014 and it has made the profit of more than the target $1.5 billion. It is going to make a huge investment into the new venture of Go-Ride, in order to expand its business across the world. As per the financial report of 2018, Go-Jek has invested $500 million in its international expansion strategy and in 2019, it is going to invest $2 billion into the new venture, in order to make the total valuation of this company up to $ 9.5 billion (www.go-jek.com, 2018).

Accounting operations:

Accounting operation is the process of maintaining the consistent flow of money into the business (Hess and Cottrell, 2016). in order to open the new venture in the UK market, Go-Jek needs to focus on several segments of accounting such as account receivable, account payable, customer credit accounts, tax accounting and the payroll. In order to operate in UK transport, make, Go-Jek needs to follow the UK based taxation rules, interest rates and the tariff legislation. Moreover, Go-Jek needs to frame the proper accounting reporting segment for the new venture of Go-Ride, in order to maintain annual tax filing, financial relation with the other transportation segment in UK and company cost (www.go-jek.com, 2018).

Marketing operation:

Marketing is one of the most important aspects of business management and operation process (Spence, 2016). Through proper marketing, the company promotes its service and products in the international and domestic market in order to improve its brand awareness and sales. Go-Jek is going to make a highly effective marketing plan by using the sales projection techniques in order to determine the best way to utilise the company resources in into the marketing of the service if new venture. Go-Jek, prefers the online promotion of this Go-Ride, through the online applications, social media and the official websites of this company. Moreover, it is going to conduct the online promotional events which are going to be uploaded over the social media and official webpages of the company in order to aware the UK based customers about the new venture of Go-Ride (www.go-jek.com, 2018).

Human resources operation:

Human resource operation is important not only for recruiting and staffing the eligible candidates into the organisation, but also allocate and proper physical resources such as employee, suppliers and clients, for the new ventures (Nguyen et al. 2015). Go-Jek has a highly efficient and well-organized HR team, which is going to make the overall hiring and staffing planning for the new Go-Ride venture in the UK market. For this process, Go-Jek has conducted the market research on the UK based labour market to analyse the availability of high-skilled drivers, technical; staffs, and technical labours(www.go-jek.com, 2018).

Customer service:

Go-Jek focuses on maintaining a strong and healthy relationship with its customer by providing high quality and convenient ride. In case of opening up the new venture of Go-ride in UK market, Go-Jek also prioritises the customer safety and comfort at the heart of the business. therefore, it can be stated that the new venture would be able to grab higher customer support and attention.

Funding requirement:

Go-Jek has several investors such as Google, Tencent and JD. Com from which its mange the instant flow of fund. In South Asia, Go-Jek has risen up its fund up to $2billions through funding from its existing investors. Recent evidence-based reports suggest that Google, Tencent and JD have doubled down their investment on Go-Jek, that increases the value of the company more than US$9 billion (www.go-jek.com, 2018).

Associated risk:

Go-Jek has the chances to face several risks in the UK market in order to operate its ride-hailing service. Risks are competition threats from the existing rivals such as Limo bike, Jump, Uber MOTO, Uber Plus and Passenger’s Bike. Another threat can pose through the new entrants into the UK transport market, such as Uber's newly launched Uber Plus. The UK Transport regulation, legislation and taxation policies, can pose the risk on Go-Jek (www.go-jek.com, 2018).

Financial costing the forecast:

The evidence-based financial report suggests that Go-Jek is going to raise its funding up to $2billion. Estimated forecasting cost for the new venture of Go-Jek would include the different segments such as workers wedge, health insurance of workers and drivers, administration cost, management cost and taxation cost. Therefore the forecasted estimated cost for the new venture of Go-Jek would be:

Innovation strategy:

Go Jek has taken an innovative marketing strategy for driving its market expansion.

Through using the new interface and high-quality network, Go-Jek is going to make the experience of Go-Ride faster and easier. It is going to simplify the application and design of the mobile application process through which customer can easily book the ride.

Go-Jek has taken the marketing strategy to offer a free ride to new customers in order to promote the Go-Ride in UK market. Moreover, if the customer who avail this service first time recommend other people to avail this service, the customer can get impressive cash back into their Go-Ride account.

Go-Jek has also planned for the customers who use the Go-Ride app and book the ride for more than 10 times, will gain impressive point while paying through their credit and debit card. Through this point they can get amazing gift hampers.

Go-Jek improves the designing and accessibility of it’s Go-Ride apps in order to offers the facility to each customer to track the location in their mobile through using the GPS system of Go-Ride apps, at time of availing the ride. In this process, customers can have a trustworthy and convenient journey.

SMART goals:

Conclusion:

From the above-mentioned discussion, it can be concluded that GO-Jek is famous ride-hailing service in Indonesia, which is intended to open its new venture in the UK. For opening the new venture of Go-Ride, segment, Go-Jek needs to make the proper business planning and marketing strategy this is important for developing and expanding the business in the new market. It focuses on the market size, customer preference, market segmentation and the current demand in the UK based transportation market, in order to grab the customers. Go-Jek also develops different innovative strategies to compel the UK customer to chose the Go-Rode over the other motorbike taxi service. moreover, in opening the new Go-Ride venture in the UK, Go-Jek can face the direct competition from the potential existing competitors in the UK market such as Uber Plus, Limo Bike and Uber Moto. In order to deal with these competitions, Go-Jek needs to start the improved marketing strategies and smart tactics that can assist the marketers to grab the customers attention.

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