GO-

JEK
Go-Jek in Indonesia:
Seizing Digital
Opportunities at The
Bottom of The Pyramid

Syndicate 9

Ghina Athaya (29119159)

Muhammad Apriyandito (29119004)
Siti Nuur Fatinah M. (29119073)
Yegi Esarianita (29119139)
 Company
Profile
PT Gojek Indonesia or known as Gojek was established in
2010 which was founded by Nadiem, which was motivated by
traffic congestion in the capital city.

Gojek is a Super App. It’s one app for ordering food,

commuting, digital payments, shopping, hyper-local delivery,
getting a massage and two dozen services. It is Indonesia’s
first and fastest growing decacorn building an on-demand
empire across Southeast Asia.

The Gojek app was launched in 2015 in Indonesia, and is now

the largest consumer transactional technology group on a GTV-
basis in Southeast Asia.

Gojek's operations are based on 3 pillars: speed, innovation,

and social impact. Its main focus is to empower the informal
GO-JEK
sector in Southeast Asia.
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GO-JEK
Products
Go-Ride
Transport
Go-Car

Go-Box
Courier
Go-Send

Go-Mart
Shopping
Go-Food

3
 Problem

“Alternatively, Go-Jek could expand its business to the

other cities across Indonesia and bring its battle for
legitimacy beyond Jakarta. Go-Jek was already in 14
cities – Jakarta, Bandung, Surabaya, Bali, Makassar,
Medan, Palembang, Semarang, Yogyakarta, Balikpapan,
Malang, Solo, Manado, and Samarinda. When would the
underlying economics of Go-Jek start to make less
business sense (for instance, in cities with fewer traffic
congestion issues)?

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Go-Jek Rider
Recruitment Process

●Have android based ● Fill up personal data

smartphone online or directly come
● Have either driver to Go-Jek’ s offices in
license (SIM C / SIM each region.
A)
● Have an active STNK
● Have either
motorcycle or car
that match with Go-
Jek’s standard 5
How to use Go-Jek app ?

Customers seeking ojek rides would use Customers would select “shopping” on the
the app to key in their intended mobile app and fill up the address of the
destinations, after which a fare estimate store, the items to purchase and the
would be displayed. Customers happy with destination to deliver the items to. The
the estimate would then submit their nearest Go-Jek driver would then head to
request for a ride. Once the request was the store, buy the items using his or her
sent, the nearest available Go-Jek rider own money first, and deliver the
would then submit their request to pick-up requested items to the stated delivery 6
 Now ?
Go-Jek keeps growing its business, as per 2017, they were not only operating their
business in big cities with a crowded traffic such as, Jakarta, Bandung, Surabaya, etc.
Go-Jek has expanding its location into 25 more cities in Indonesia, which are :

Source : https://www.gojek.com/blog/gojek/kini-go-jek-telah-hadir-di-25-kota-baru-di-indonesia/
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By collecting the data of Go-Jek’s strategy on expanding its services to more region in
Indonesia, we can assume that Go-Jek can actually become one of public transportation
solution in every region in Indonesia.

Before that, we need to analyze which city that can be the next potential target market.
As for this case, it is quite interesting to analyze between the market and Go-Jek in new
potential market. Pontianak.

In order to analyze the feasibility and the opportunity of this project, we used Risk Matrix and R-W-W
Screen.

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Risk Matrix
A risk matrix enables you to estimate each
project's probability of success or failure
based on how big a stretch it is for the firm.
 Intended Market : X-Axis

Intended Market

… be
entirely
… be the … partially
different
same as overlap
from our
in our with our
present
present present
market or
market market
are
unknown

Customers’ behavior and

decision-making 1 2 3 4 5 1
processes will...

Our distribution and sales

activities will...
1 2 3 4 5 1

The competitive set

(incumbents or potential 1 2 3 4 5 1
entrants) will...
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 Intended Market : X-Axis Explanation

Go-Jek’ s was built due to the The distribution of services in every The phenomenon of Go-Jek inspired
demand from bad traffic conditions region of Go-Jek’ s expansion will be many other starts-up to follow its
in most of the big cities in Indonesia. the same, the customer will get the step by making an online service
But, Go-Jek is not only providing its services after they order it by using transportation. In Pontianak itself
customer a solution for Go-Jek’ s app. It applies for all Go- there’s an app like Go-Jek called
transportation, they also offer Jek’ s product services (transport, Tripy (made by lokal). If Go-Jek
convenience for customer in courier, shopping). entered the market of Pontianak,
general. Regarding to this fact, they obviously need to consider
So, we assume that in Pontianak the
customer’s behavior and decision Tripy as their competitor. Besides
distribution and sales activities of
making of target segment in that, the conventional
Go-Jek will be the same as the
Pontianak will not much different transportation option like taxi,
present market.
from any other target segment in angkot, ojek conventional, etc; must
present market. The reason is be considered as their incumbents
because the customer needs the competitor. In addition, Go-Jek must
service, most of them are internet be prepared for its competitor like
savvy, and they are in the middle Uber and Grab who will also
economic class. Besides that, the probably expanding to Pontianak.
pattern of decision making process
So, in conclusion, the competitive
of customer on choosing
set (incumbents or potential
transportation solution will be the
entrants) will be the same as in their
same since the target segment in
present market. 11
Pontianak get used to ride an ojek
 Intended Market : X-Axis (Cont.)

Intended Market

…
… highly … not at all
somewhat
relevant relevant
relevant

Our brand promise is... 1 2 3 4 5 1

Our current customer

relationships are...
1 2 3 4 5 1

Our knowledge of
competitors’ behavior 1 2 3 4 5 1
and intentions is...

TOTAL
(x-axis coordinate)
6

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 Intended Market : X-Axis Explanation (Cont.)

Go-jek promises to provide the Go-Jek can be a solution for citizen in Go-Jek has realized about their
best service for consumers, Pontianak. Especially those who needs competitors both directly and indirectly.
respond to all requests in a short a simple, cheap and safety In Pontianak itself, there is a local online
time and provide solutions for transportation like what Go-Jek offer to transportation called, Tripy. Tripy could
various needs, ranging from its customer. In between relationship be the competitor for Go-Jek to expand
transportation, courier and to that has been made by both customer their business to Pontianak. Besides, we
food services. The solution and company, Go-Jek has made a all know that conventional
offered by Gojek can be done in bridge by serving its customer the best transportation, especially conventional
Pontianak City, because there are service as they could. It can be proven ojek has become Go-Jek’s competitor.
Congestion at a number of points that Go-Jek’ s current relationship are Their existence (ojek) won’t be affected
in Pontianak City, such as the relatively high in Pontianak. that much when it comes to attracting
Kapuas I Bridge to the Landak customer, but how they react towards
First of all, the simplicity of Go-Jek app
Bridge line, due to the lack of Go-Jek might be affect Go-Jek’ s
that can be used by people easily.
public transportation for the operational.
Second, they trained their rider on how
community.
to serve their customer, it is important Go-Jek have already learned its
since the riders are those who directly competitive advantage in Pontianak.
communicating with customer. Third, But, they also need to prepare their
customer can give their evaluation for strategy for the time when Grab and
Go-Jek’ s riders by giving them rating Uber also expand to Pontianak. So, in
after ride. Last, Go-Jek also provide order to win gojek can outsmart by
customer service that can access strengthening consumer loyalty by 13
through email or phone. branding, giving discounts on every
 Product/Technology : Y-Axis

Product/Technology

… will
… is fully require … is not
applicable significant applicable
adaptation

Our current development

capability...
1 2 3 4 5 1

Our technology
competency...
1 2 3 4 5 1

Our intellectual property

protection...
1 2 3 4 5 1

Our manufacturing and

service delivery system...
1 2 3 4 5 1

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 Product/Technology : Y-Axis Explanation
Go-Jek has been actively in developing its
service. Not only they focused on doing Gojek already build and develop the
expansion for every region in Indonesia, technology with integrated system that
but they are also keep developing their easy to use and fully applicable for
operation and their technology. their users (customers and riders).
Every decision made by Go-Jek regarding They are not only trying to make easy-
to its development has always been to-access app for the users, but they
trying to easy-to-access by both service are also trying to benchmarking their
provider (riders) and customers. So, yes, technology with its similar competitor
their current development is fully like Uber and Grab.
applicable.

Go-Jek’ s delivery system of services

Go-Jek established their company in is actually fully applicable. Since they
2010, they have made many made the operation system for their
preparation in order to be able to app as simple as possible. First, they
compete in the market. So, Go-Jek always make sure their riders to get
has actively monitoring and their point for every ride since they
registering their brand, app, logo, made a history for every riders.
etc; as the decision for intellectual Second, they make sure customer to
property protection. always feel comfortable by using the
app with its simplicity.
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 Product/Technology : Y-Axis (Cont.)

Product/Technology

… are … overlap …
identical somewhat completely
to those with those differ from
of our of our those of our
current current current
offerings offerings offerings

The required knowledge

and science bases...
1 2 3 4 5 2

The necessary product

and service functions...
1 2 3 4 5 1

The expected quality

standards...
1 2 3 4 5 1

TOTAL
(y-axis coordinate)
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 Intended Market : X-Axis Explanation

The required knowledge and The necessary product and The expected quality
science bases are quite service functions are identical standards are identical to
identical to those of our to those of our current those of our current offerings
current offerings because it offerings because in Pontianak, because Gojek already has
offers the same thing with the the necessary product and experience with their service
other previous cities, but service functions that will be offerings in the previous cities
there will be some knowledge provide are the same with the and they can manage the
that are slightly different other cities where Gojek quality standard well.
because this is a different city operated. The product and Therefore, in this new city it
with different culture and service functions that Gojek was expected to have quality
preference. will provide are transport, standards that are identical to
courier, and shopping. the current offerings.

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RISK MATRIX

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R-W-W Screen
The R-W-W ("real,""win,""worth it") screen helps firm
evaluate projects' feasibility.

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Is It Real?

Is there a need or
desire for the Yes
product? Is there a clear
concept?
Yes

Can the customer

buy it?
Yes

Is the market Is the product Can the product be

Yes
real? real? made?
Is the size of the
potential market Yes
adequate?

Will the final product

Yes
satisfy the market?
Will the customer buy
Yes
the product?

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Is It Real? (Explanation)
Is the market real? Is the product real?
● Is there a need or desire for the product? Yes ● Is there a clear concept? Yes
People in Pontianak usually use private vehicle for There is a clear concept, because the product
transportation due to a lack of public transportation. Gojek offers are the same with the existing
Because of that, there is a congestion in Pontianak. product and service in the 14 cities.
Therefore, there is a need or desire for the product of
● Can the product be made? Yes
Gojek to have an effective transportation.
● Can the customer buy it? Yes The product can be made because GoJek has
adequate amount of capital, the people already
Customer can buy it because there are a lot of have smartphone, and Gojek already search for
people who have a smartphone and Gojek usually information about citizen of Pontianak to give the
offer lower tariff. best offers of their product and service.
● Is the size of the potential market adequate? Yes
● Will the final product satisfy the market? Yes
The size of the potential market is adequate, the
The product/services that Gojek offers will solved
population in Pontianak is 669.169 peoples, and
the problem of citizen Pontianak especially in
incomes in Pontianak is quite high.
transportation. Therefore, the final product will
● Will the customer buy the product? Yes satisfy the market.
Gojek provide a solution for the citizen of Pontianak
especially in transportation. Therefore, they will buy
the product that Gojek offer. 21
Can We Win?

Does it have a
competitive Yes Do we have superior
Yes
advantage? resources?

Can the product Can the advantage be Can our Do we have

Yes company be appropriate Yes
be competitive? sustained?
competitive? management?

●Imitate Can we understand

How will competitors
●Protest/ and respond to the Yes
respond?
banned market?

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 Can We Win? (Explanation)
Can the product be competitive? Can our company be competitive?
● Does it have a competitive advantage? Yes ● Do we have superior resource? Yes
Go-Jek has a strong brand image in Indonesia since they are Gojek has superior resource and famous for its
the pioneer for this service in Indonesia. Besides that, they quality service. Gojek works with big data that are
also have a super app made by expert that is friendly for user. ready to be processed, and the drivers that Gojek
Next, they are doing burn cash by giving many discount for
recruited will go through basic training first.
customer in order to attract customer. Then, they always put
customer needs first before them, they try to deliver its ● Do we have appropriate management? Yes
service as fast as possible and as safe as possible for their
customer. Gojek have appropriate management that will
support the operation to expand in new city.
● Can the advantage be sustained? Yes
● Can we understand and respond to the market? Yes
Gojek got a lot of data that will be processed by the team.
Insight or ideas derived from the data formed the basis for Gojek work with big data everyday that are ready
continuous service optimization, so because of that the to be processed, so with the big data they can
advantage can be sustained. understand and respond faster to the market.
● How will competitors respond? Imitate and Protest
Go-Jek has different competitors, as for similar competitor like
Tripy, Grab and Uber, they probably follow the way of Go-Jek
keep offering discount to its customer.
Then, as for conventional transportation like ojek, in Indonesia
itself many of them made a protest regarding to the existence
of Go-Jek. Many of them banned Go-Jek to enter some places
because they are afraid that Go-jek will took away their
customers. 23
Is It Worth Doing?

Are forecasted Does the product fit

returns greater than Yes our overall growth Yes
costs? strategy?
Does launching
Will the product
the product
at an acceptable
make strategic
risk?
sense?
Are the risks Will top management
acceptable
Yes support it?
Yes

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Is It Worth Doing? (Explanation)

Will the product at an acceptable risk? Does launching the product make strategic
sense?
● Are forecasted returns greater than costs? Yes
The forecasted returns on Go-Jek in Pontianak ● Does the product fit our overall growth strategy? Yes
will be greater than its cost since the target By expanding its market to the new area, it is
segment there has already aware about Go-Jek. actually one of the way of Go-Jek to keep growing its
Go-Jek might have to burn cash in order to business. So, yes they new decision for expansion to
attract its customer, but customer intention to new area, Pontianak is fit with Go-Jek’s growth
use this app is also big. That is why the strategy in making one of the best transportation
forecasted returns will be greater than costs. solution for citizen in Indonesia.
● Are the risks acceptable? Yes ● Will top management support it? Yes
Based on the risk analysis (risk matrix), the risk
The top management will support it, because they
of this expansion is acceptable.
must be want to expand their service to new cities in
Indonesia that will be give them more profit.

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CONCLUSION

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 Go-Jek as one of the biggest online transportation in
Indonesia keep developing its services to be able to
increase their market share. One of the way to do this is
by expanding their business to new area, in this case we
analyze about their expansion decision to Pontianak.
We made an analysis by using Risk Matrix (to find out
new decision risk) and R-W-W Screen (to find out the
feasibility of new project).
According to the results, the decision of expanding
into Pontianak, the company has the risk of failed (the
probability of failure) in between 25-40% which is quiet
a small number, so the company can continue this
project if directors think that Pontianak becoming their
new potential market.
Then, regarding to R-W-W Screen, this project is
feasible, Go-Jek can continue to working on this project
since there will be much opportunities that they can get
by relying on their resources and capabilities to compete
in the market. There might be obstacle or threat, but
with the size of Go-Jek now, they can overcome it and
focus to gain their market share in Pontianak. Gojek can
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expand its business to Pontianak.
THANK YOU

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