This week’s podcast is Grab's growth initiatives, which are critical for getting to operating profits. They also provide a case for talking about core vs. adjacency growth.

You can listen to this podcast here, which has the slides and graphics mentioned. Also available at iTunes and Google Podcasts.

Grab's compelling growth initiatives include:

1. New Services for Consumers
2. GrabUnlimited
3. Cross-Selling
4. Advertising
5. Financial Services

Most of this is a summary of work by Chris Zook at Bain’s strategy practice. I am citing the books:

• Profit from the Core
• Beyond the Core

Most all sustainable growth is based on 1-2 strong cores.

• A profitable core is centered on the strongest position in terms of loyal customers, competitive advantage, unique skills, and ability to earn profits.
  • My list for strong cores are growth / market, competitive advantage and attractive unit economics.
• Adapting the core can be:
  • New products / services
  • New customers – microsegments
  • New geographies
  • New businesses.

Six growth adjacencies:

• New customer segments:
• New geographies
• New channels
• New products
• New Businesses
• New value chain steps

How to assess an adjacency move:

• Factor 1: Adjacency is tightly tied to a strong core.
• Factor 2: An attractive adjacency market in terms of profit pools
• Factor 3: The ability to capture economic leadership in that market.

Digital adjacencies are moderate, relentless expansions versus big trees.

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Related articles:

• Grab’s Big Strategy and Cash Flow Question (1 of 4) (Tech Strategy – Daily Article)
• Lessons from Grab in Geographic Density and Other Tech Enabled Cost Efficiencies (3 of 4)(Tech Strategy – Daily Article)

From the Concept Library, concepts for this article are:

• Growth: Core vs. Adjacency
• Growth: Explore vs. Exploit

From the Company Library, companies for this article are:

• Grab

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I write, speak and consult about digital strategy and transformation.

I also host Tech Strategy, a podcast and subscription newsletter on the strategies of the best digital companies in the US, China and Asia.

This content (articles, podcasts, website info) is not investment, legal or tax advice. The information and opinions from me and any guests may be incorrect. The numbers and information may be wrong. The views expressed may no longer be relevant or accurate. This is not investment advice. Inves

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