ATW393E STRATEGIC MANAGEMENT

NINJAVAN REPORT

SEMESTER 2

ACADEMIC SESSION 2021/2022

LECTURER: PROFESOR MADYA DR. HASLIZA BINTI ABDUL HALIM

TEAM 42

GROUP MEMBERS:

N NAME MATRIC SCHOOL

O. NO.

1. NUR AMIRAH BT ABDULL KASSIM 144424 ACCOUNTING

2. LINARANI MUNIANDY 143862 ACCOUNTING

3. GEETHANAPRIYA SATHIYANANTHAN 144260 ACCOUNTING

4. YIN YUAN 150043 MANAGEMENT

5. PRASANTHINEY A/P NAGESWARA RAO 144310 ACCOUNTING

Table of Contents

Table of Contents 2
Exercise 1: Formulate Vision and Mission Statement 3
Exercise 2: External Analysis (opportunity-threat) and Internal Analysis (Strength-weakness) -
SWOT ANALYSIS 4
Exercise 3: Formulate SWOT MATRIX 8
Exercise 4: Competitive Strength Assessments 9
Exercise 5: Strategic Group Map (at least four other competitors) 12
Exercise 6: The Strategic Diamond 14
Exercise 7: ERRC Grid of Ninja Van 18
References 24

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Exercise 1: Formulate Vision and Mission Statement

Ninja Van is a rapid logistics company that provides hassle-free delivery services to
businesses of all sizes across Southeast Asia. Ninja Van launched operations in
Singapore in 2014 and has since grown to become the region's largest and fastest
growing last-mile logistics company, with a network that spans six Southeast Asian
countries: Singapore, Malaysia, the Philippines, Indonesia, Thailand, and Vietnam. By
combining our passion for utilizing new technological solutions with our in-depth
knowledge of e-commerce needs, we ensure that logistic is a hassle-free affair for our
business partners and consumers. We are trustworthy, just like a genuine Ninja, and we
maintain our commitments to you.

This vision statement reflects the company’s values and business strategies. The
following are the Ninja Van’s vision statement:

Our vision is to have a Ninja within reach of any consumer in Southeast Asia. Whether
you are a seller or shopper, we understand that your needs vary, and challenges differ.
The following are the Ninja van’s mission statement:
Connecting Southeast Asia to a world of possibilities, one delightful delivery at a time.

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Exercise 2: External Analysis (opportunity-threat) and Internal Analysis (Strength-
weakness) -SWOT ANALYSIS

External Analysis

i. Opportunity

Increasing demand

During this pandemic, buyer behavior has changed. Most of the people have been buying
and selling things online for the past two years. This helps to increase customer demand
towards Ninja Van as their demand for service will increase.

Globalization

In the region, Ninja van has various markets to reach and conquer. They can re-strategize
the ecology and infrastructure of last-mile delivery services. Believed by over 600,000
brands and companies, Ninja Van makes shipping efficient and easier for both the
shipping company and their beneficiaries.

Digitalization

Demand for E-commerce is getting even more famous along with logistics systems that
make Ninja Van more relevant now than before. E-commerce is also growing increasingly
localized, as online firms and customers choose to sell and purchase locally rather than
globally. Local merchants prefer selling items already accessible in Malaysia rather than
importing from China, and shoppers choose to buy home-grown brands to help them
recover from the epidemic.

ii. Threat

Risk of data breaches

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The increased risk of data breaches in their systems is one of the threats. As more people
purchase online, more information is stored on e-commerce platforms, raising the risk of
data breaches. If data breaches occur in Ninja Van's system, their reputation will suffer.
Management will be disappointed with customers.

Unexpected events

There is danger waiting in every corner for delivery service companies including Ninja
Van. Ninja Van management might face unexpected events. As we all know, Ninja Van
must deliver goods across large distances, such as from Johor to Kedah, and when
hundreds of thousands of people are hurrying on the road to perform their tasks, an
accident is possible. As a delivery company, Ninja Van employees risk endangering their
lives and jeopardizing the safety of the goods to be delivered. They need to take care of
their employees too.

Large number of competitors

Then, a large number of competitors is also one of the threats. Since Ninja Van runs a
delivery service, there are numerous competitors such as J&T Express, Pos Laju, City
Express, and more. Every delivery service company has its own strength. Hence, Ninja
Van needs to maintain their brand and service to increase its customers.

Natural calamities

Besides, Ninja Van might face natural calamities, such as the recent floods in Kuala
Lumpur, resulting in delivery delays and good damage. Flash floods are dangerous
natural disasters that we cannot predict. Therefore, Ninja Van might suffer loss and trust
from their customers due to delivery delays and goods damage.

Internal Analysis

i. Strength

Customers Services

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Ninja Van builds great client relationships and communicates with them on a frequent
basis through several platforms to ensure that their requirements are addressed. They
also give consumers detailed step-by-step guidance on how to transport and ship parcels.
The poster below shows the easy steps for sending the parcels from Ministop.

Accessibility

Ninja Van provides a multitude of package pickup sites around Singapore, making it
convenient for clients and companies alike. They needed to make sure that the
infrastructure could handle parcels faster and safer for consumers as demand for express
delivery grew. Thus, in order to improve the express delivery capabilities, Ninja Van
created a new automated hub.

Respond to market expectations

Many service providers are lacking in terms of logistics. Because of their efficient e-
commerce logistics, Ninja vans are able to handle this challenge. Ninja Vans provides

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courier services in six Asian countries other than Singapore. Ninja Van also uses Ninja
Chat, a live-chat platform. It is a social messaging-based platform with live-chat
capabilities that gives consumers a quick and easy method to raise and resolve concerns
and is one of the important products in this ecosystem.

ii. Weakness

Micromanagement

Due to the large number of orders Ninja Van receives and processes, managing each
delivery is a challenge. Sometimes the parcels are missed due to the huge number of
orders. As a result, a number of buyers have expressed their discontent with missing
goods.

Security Techniques

Since they have been involved in data breaches that have led to lawsuits, Ninja Vans'
security procedures have yet to be assured. It puts many people's personal information
at risk. Hence, this affects the trustworthiness of the customers towards Ninja Van which
simultaneously drops the success rate of the company.

Inconsistent human resources

Ninja Van has a labor shortage during peak times or seasons. For example, clients in this
region may have to wait longer for their items to be delivered since some logistic providers
are suffering with a staffing shortage while Covid-19 cases remain high.

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Exercise 3: Formulate SWOT MATRIX

Opportunities Threats

Strengths · Increase the quantity of · Continue to differentiate

courier deliveries by adding Ninja Van’s brand by
more lockers at collecting improving the quality of service
places around the country. provided.

· Hire extra delivery · With the new funds

personnel to increase the invested into the company,
quantity of deliveries to improve on the security system
satisfy rising demand. so as to gain back consumers'
trust in the brand again.

· Offer flexible rates for

consumers that are struggling
due to the consequence of
pandemic.

· New entrants that may

disrupt the logistics industry.

Weakness · Plan ahead for increased · Improve

demand and learn from past micromanagement to avoid
micromanagement mistakes being unfavorably compared to
to avoid repeating the same competitors.
problems in the future.

· The funds will be used to

enhance technological
systems that will aid in both
micromanagement and data
security.

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 Exercise 4: Competitive Strength Assessments

A competitive strength assessment is a weighted assessment of the strengths and

weaknesses of an individual or company and their current and potential competitors.

KEY SUCCESS FACTORS IW NINJAVA J&T DHL FedEx

N EXPRESS

SR W SR W SR WS SR WS
S S

Accessibility 0.2 4 0.8 3 0.6 3 0.6 2 0.4

Customer Service 0.2 4 0.8 4 0.8 3 0.6 3 0.6

Market expectations 0.1 4 0.4 3 0.3 3 0.3 3 0.3

Ease of usage 0.1 4 0.4 3 0.3 2 0.2 2 0.2

Flexibility 0.1 4 0.4 2 0.2 3 0.3 3 0.3

Profitability relative to competitors 0.1 4 0.4 3 0.3 3 0.3 2 0.2

Brand image and reputation 0.1 4 0.4 3 0.3 3 0.3 3 0.3

Affordability 0.1 4 0.4 2 0.2 3 0.3 2 0.2

Sum of importance weight 1.0

Weighted overall strength 4 3 2.9 2.5

Ninja van’s Competitive Strength Assessment

Table 4.1 shows that Ninja van’s competitive strength is compared to three key
competitors in the table below. The assessments provide data on a company’s
competitive position. The key success is factors identified: accessibility, customer service,

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market expectations, ease of usage flexibility, and profitability relative to competitors. On
a scale 1 to 5, 1 is very weak and 5 is very strong. Multiplying the assigned rating by the
assigned weight gave the weighted overall strength rating. In terms of accessibility, Netflix
has the highest score compared to the other three streaming platforms. J&T Express and
DHL scored 3 while FedEx only indicated 2 points. You can make it convenient for clients
and companies alike. Besides, in the market expectation column, Ninja Van once again
won with 4 scoring points defeating all of the competitors by only 1 point higher than them.
It is due to the fact that more producer films are convinced to sell their masterpiece to
Ninja Van compared to other distributors.

Key success factors of customer care recorded 4 scoring points for both Ninja Van and
J&T Express while for DHL and FedEx only recorded 3 scoring points. Meanwhile, in
terms of ease of usage, Ninja Van indicates 4 points, and 3 points for J&T Express. DHL
and FedEx indicate 2 scoring points, respectively. This is because the applications of
Ninja Van are easy to use for most people including children and senior citizens. The next
key success factor is flexibility. Ninja Van ranked the highest score which is 4 scoring
points. The second one is DHL and FedEx with 3 scoring points while the lowest is J&T
Express with only 2 points. 4 scoring points are given to Ninja Van while J&T Express,
and FedEx recorded 2 scoring points in terms of affordability. DHL recorded 3 points in
this key success factor. This is because the price for the shipping and aerial or parcel is
more affordable for everyone compared to others.

Furthermore, in terms of brand image and reputation, Ninja Van achieved the highest
position compared to their rivals with 4 scoring points. At the same time, all others such
as J&T Express, DHL and FedEx continue to plumb the same scoring points (it’s currently
at 3). Move to the next section, which is profitability relative to competitors, Ninja Van
once again at its highest with 4 points while the other competitors such as J&T Express
and DHL indicate the same 3 points. The lowest is HBO, currently at 2 scoring points. It
is because Ninja Van is well-known and traditionally being a distributor industry compared
to their competitors.

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As you can see, Ninja Van has the highest weighted overall strength with a score of 4
compared to J&T Express (3), DHL (2.9) and FedEx (2.5). This should not be a surprise
based on the descriptions above about each streaming service. This shows all companies
what they do well on and where they can improve within their company.

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Exercise 5: Strategic Group Map (at least four other competitors)

Group Strategic Map Ninja Van (Malaysia)

Market
expectation
High

Low

Low Domestic Price (RM) High

Market expectation vs RM (shipping costs 1 kg)

1. J&T Express - RM5.00 shipping cost

2. FedEx - RM5.50 shipping cost
3. City-link Express - RM6.15 shipping cost
4. Pos Malaysia - RM7.00 shipping cost
5. DHL Malaysia – RM9.00 shipping cost

Strategic group mapping is an analytical tool used to depict various markets or

the competitive positions that competitors hold in the business industry. It is a critical
tool for analysing the competitive structure of the industry and identifying the strategic
group, which is a group of business units or firms that pursue similar strategies with
similar resources. As a result, depending on the strategies and market positions of the
industry members, each industry will contain one or more strategic groups.

The purpose of the strategic group map is to identify and determine the close
and distant rivals in this industry. This is an important issue as the close strategic group
will have stronger cross-group competitive rivalry. Besides, this tool can also be used

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to identify the attractiveness and unattractiveness of the firm’s position in the industry
as well as evaluating the entrances to the industry. Thus, it helps in analyzing and
examining the type, level, and barriers of entry to the industry.
From the graph above, DHL have high domestic price so the market expectation
will be low. Besides, Pos Laju, City Link and FedEX have almost the same domestic price
and market expectation. Finally, J&T has the lowest domestic price so higher market
expectation.

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Exercise 6: The Strategic Diamond

The Strategy Diamond is a framework that helps Ninja Van visualize their business
strategy and examine how elements of the strategy are aligned with each other. In other
words, The Strategy Diamond is a collection of the five elements forming a coherent
business strategy. These five elements of strategy are Arenas, Differentiators, Vehicles,
Staging, and Economic Logic.

Table of The Strategic Diamond

Arenas helps Ninja Van managers and employees know where Ninja Van will be active
and with how much emphasis.

Which product categories?

Which channels?

Which market segments?

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Which geographic area?

Which core technologies?

Which value-creation strategies?

Ninja Van is a technology-driven logistics operator that operates a parcel delivery network
in 6 markets: Indonesia, Malaysia, Philippines, Singapore, Thailand, and Vietnam. Ninja
Van has built an overall delivery model based on e-commerce needs from the very
beginning, choosing to invest in building fleets, logistics warehouses and networks to
provide efficient and reliable delivery services. In addition, Door-to-door delivery, flexible
parcel pickup, local and international courier service offerings in Ninja Van is considered
market-leading products in Malaysia.

Differentiators refers to the things that are unique to the firm so that Ninja Van owns a
competitive advantage in its current and future arenas. So, Differentiators focus on how
Ninja Van will win?

Image?

Customization?

Price?

Styling?

Product reliability?

Speed to market?

Ninja Van's main customers are e-commerce companies. Their advantage is to use
algorithms to provide the best logistics routes, allowing logistics staff to deliver goods to
recipients in the shortest possible time. Moreover, Ninja Van provides API integration,
through CSV batch upload of orders, customized solutions for customers.

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Economic Logic, this explains how Ninja Van makes money above its cost of capital.

Lowest costs through scale advantages?

Lowest costs through scope and replication advantages?

Premium prices due to unmatchable service?

Premium prices due to proprietary product features? makes money above its cost of
capital. The strategy must be financially profitable enough for investors to be willing to
continue funding Ninja Van's operating costs. Ninja wallet, cash on delivery service, self-
collection Serve. These proprietary product features and unparalleled service lead to a
premium.

The fourth facet of the strategy diamond is called vehicles. If arenas and differentiators
show where you want to go, then vehicles communicate how the strategy will get you
there. vehicles refer to how you might pursue a new arena through internal means,
through help from a new partner or some other outside source, or even through
acquisition.

Internal development?

Joint ventures?

Licensing/franchising?

Alliances?

Acquisitions?

In March 2018, DPD Group, the world express parcel subsidiary of Poste de France,
invested in NinjaVan to expand its market share in the region. NinjaVan and Southeast
Asia GrabInc. announced a strategic partnership on April 25, 2019. After the cooperation

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between the two parties, NinjaVan's logistics services will be integrated into the Grab
app's on-demand parcels and its express delivery services. So, the cooperation has
created a larger market than the competition.

Staging reflects the sequence and speed of strategic moves. which helps to reconcile the
designed and emergent portions of strategy. Ninja Van has an increased network of
pickup and drop-off points, free redelivery attempts, one-click rescheduling of deliveries,
discounts on bulk pricing. To prevent Ninja Van's customers from coordinating strategies
in the event of a package being dropped or a wrong delivery, an increase in customers
choice, and speed of problem solving.

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Exercise 7: ERRC Grid of Ninja Van

Logistics has been an important service to all sectors in a global wide. Despite being one
of the technology-enabled delivery systems, it is required for the logistics firm to fulfill the
request of its customers and update on the tracking of the delivery process. Aside from
that, a good logistics firm should enhance a good successful supply chain. The only way
for logistics companies to maintain its flexible operation is to provide demand efficiently
by improving productivity and controlling supply chains. As the rise in competing with
other logistics companies becomes stronger, perhaps it might cause disruptions to
become a market leader. Therefore, Blue Ocean strategy was introduced in order for the
marketers to have a deep knowledge on creating its own demand rather than compete
for the demand itself. It is undeniable that this method created a new way for Ninja Van
to avoid competition for Ninja Van using the new market space. The aim of Blue Ocean
Strategy is to show organizations how to develop by creating new spaces that have little
or no competition. The Eliminate-Reduce-Raise-Create (ERRC) grid is one of the blue
ocean strategy tools that can help Ninja Van to identify any opportunities in the
competitive market.

This tool can help Ninja Van to plan their strategies to become more effective and efficient
in their business activities. ERRC Grid consists of four boxes which are eliminate, reduce,
raise, and create and below are the ERRC Grid of Ninja Van. So, what does 'E', 'R', 'R',
'C' stand for?

● Eliminate (E)

If it no longer adds value, it should be eliminated.

● Reduction (R)

If the cost in industry is high and little advantage in terms of profit, then reduction could
help.

● Raise (R)

If satisfaction could enhance the value of industry, it should be raised.

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 ● Create (C)

If the industry is able to attract customers, then factors should be created.

ERRC drives companies to pursue differentiation and low cost at the same time in order
to obtain value innovation. These new factors are vital in creating the step change in value
for the customer that is characteristic of a Blue Ocean Offering.

ELIMINATE REDUCE

- Inefficient customer’s service - Cost

- Error in sorting activities - Time

- Delays of delivery

RAISE CREATE

- Type of services - Loyalty customers program

- Speed of delivery - Collaboration with shipping companies and

etc.
- Range of area
- Recommendation section for the customers
- Automated handling
- Free shipping programmed for new
- Service quality
customers

Table of Ninja Van’s ERRC Grid

Based on the table above, for the first box which is the elimination phase, there
are three strategies that can be done by Ninja Van which are to eliminate inefficient
customer service, error in sorting activities and delays of delivery. Ninja Van express

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service must have good and efficient customer service as the customers will frequently
ask questions about their parcel, requests, or feedback. Ninja Van must eliminate
inefficient customer service in ensuring their reputation and this can enhance customer
satisfaction and reduce customer’s complaint. Besides, Ninja Van also must eliminate
errors in sorting activities. The error in sorting activities can give a bad perception to
customers as sometimes they probably wanted their goods to be in good condition and
this violent sorting of packages is affecting the name of the company and the goods of
Malaysian customers. Error in sorting activities is due to pickers making blunders that
result in picking the incorrect products or quantity. The time lost at the pack bench, where
the mistake is hopefully discovered, results from selecting the incorrect goods or
quantities. If the error is not discovered, the incorrect items are shipped, necessitating a
refund or replacement. It not only costs money, but it also represents their brand poorly.
They might also find it helpful to scan the products again at the time of dispatch for orders
that have been picked in batches to make sure you match the correct items to each
shipping label. Ninja Van should also eliminate delay of delivery as late deliveries
decrease their customer retention rate. In turn, overdue deliveries appreciably lower your
purchaser lifetime fee. For a shipment to be delivered safely and on schedule,
comprehensive visibility across the whole supply chain is essential. Without it, businesses
may have several inefficiencies that could result in delays, damage, or lost goods. It is
almost impossible to find a city right now that does not have any traffic. It is becoming
more frequent to hear of people being delayed in their transit due to construction,
accidents, significant blockages, and detours. Drivers of couriers can benefit from route
optimization software. To prevent situations that may cause delays, it can identify the
quickest path and update it in real-time.

Next phase of the ERRC Grid is the reduce phase and there are four strategies
that Ninja Van can use. Firstly, Ninja Van must reduce their delivery rate by giving them
a choice of using the cost savings for greater purpose as most people were hesitant to
use Ninja Van because of its competitors. Ninja Van must consider the middle- and low-
income people which they also can become the target market of Ninja Van. In fact, other
competitors in this service offered a lower delivery fee to their customers and this can be
a threat to Ninja Van, especially in the long run. Furthermore, Ninja Van also must reduce

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the delivery time as some customers will wait for their goods that take longer time to
deliver.

The third phase of ERRC Grid is the raise phase and Ninja Van can follow all the
strategies in this phase to remain competitive in the market. Firstly, Ninja Van must
frequently raise the type of services for the customers to ensure they browse Ninja Van
daily and always interested in using the “ninja chat” system. The Ninja Chat for shippers
is a set of technologies that enables sellers to directly control and monitor deliveries and
orders to their consumers. The app’s major function is to construct an on-demand
communication channel for both the shipper and the consumer that continually maintain
records of the item. As an example, as each parcel leaves the station, an automatic
message is delivered to the customers informing them that delivery is on its way. Next,
Ninja Van also must increase speed in delivery to continuously monitor real-time data for
reliable next-day-delivery service. For example, promising customers a faster delivery
speed can boost more customers and profitability for Ninja Van. Raise the number of
drivers so they two different group of drivers also can help to increase speed. One group
will focus specifically on collecting items are merchant's warehouses whereas the other
group will focus specifically on collection items at outlets. If this strategy materializes,
drivers will be able reach NinjaVan's warehouse just in time for the line haul transfer.
Furthermore, Ninja Van also can increase range of area as this can improve the delivery
speed by expanding distribution centers at the North, South, East, and West regions. In
fact, with this service expansion, Ninja Van can boost parcel processing speed, help to
resolve issues more quickly and provide high quality service to all shippers. Ninja Van
also can improve their service by automated handling with new sorting machinery to
enhance their express delivery capabilities. To expand the market, Ninja Van must also
enhance the service quality because most of the customers would prefer to transact with
a company that holds their promises to customers. Maintaining overall service quality in
courier services might help them acquire a competitive advantage which can influence
customer experience and company profitability. Quality of service is vital since most
customers prefer to transact with a company that keeps their promises to them.

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 Lastly, Ninja Van must also follow the create phase in the ERRC Grid in order to
create more business opportunities in the market. Firstly, Ninja Van can attract new
customers. Ninja Van should employ customer loyalty programmes to increase customer
happiness and loyalty. The best way to recognize and reward customer loyalty is through
a customer loyalty programme. Customer loyalty programmes take several forms, such
as punch cards and point systems. This loyalty programme can show the awareness of
Ninja Van towards its customers, and this can ensure a long run relationship with the
customers. Furthermore, to ensure Ninja Van always has fresh and new services, they
also can collaborate with shipping and technology companies to make room for innovation
by generating chatbots using their platform. This collaboration can be a good marketing
strategy to attract more people to use this service. It also can satisfy customers by
delivering safely and on schedule while lowering total delivery costs. Courier
management software can help in the creation of a unified communication system by
including capabilities such as real-time tracking. Besides that, Ninja Van also can create
a recommendation section for the customers to give any feedback and rating for their
service to be included in the Ninja Van platform. This recommendation section will help
Ninja Van to identify and monitor their service by following the customers’ satisfaction.
Customer feedback can help Ninja Van to correct the mistakes they make in the delivery
service. By correcting the mistake, Ninja Van will not repeat what they do so by this they
can get more rating for their service. Rating can help customers to decide whether to use
Ninja Van service or not. Last but not least, Ninja Van also can offer free shipping for first-
time users which can give opportunity for more people to explore this service. This
strategy also will enable Ninja Van to explore more potential customers in the future. Free
shipping service can help customers to appreciate Ninja Van’s service which will make
them choose Ninja Van for their next delivery. Ninja Van can also give discounts for the
existing customers so that they will always choose Ninja Van as their delivery option.

To sum up, delivering goods that appear to be attractive and effective has boosted
customers' confidence to support and continue using this service with different e-
business's customer numbers in demand along the supply chain. From all these values
presented in ERRC Grid, Ninjavan keeps their momentum in track to improve their
reputation. Being known as one of the largest yet young logistic companies, Ninja Van

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has booming demand by taking advantage of the weakness in markets. In an attempt to
improve the service, Ninja Van currently expands distribution centres at the North, South,
East, and West regions. Other than developing its facilities, Ninja Van has new sorting
machinery to enhance their express delivery capabilities from the operation. Customer
satisfaction and increased profits are the primary aims of Ninja Van as a logistics firm.
Technology is so important, so if Ninja Van Express wants to be more advanced, they
need to use technology in managing operations because technology also can help the
company earn more profit. So, other company express will trust Ninja Van because of
their quality system then will collaborate with Ninja Van Express. This will make Ninja Van
better known worldwide. Therefore, reaching a market where competitions are limited or
no competition at all becomes one of their opportunities to expand its business.

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RLE Dones, MN Young - 2020 7th International Conference on …, 2020 -

ieeexplore.ieee.org

SA Saim, A Mas' od, TA Chin, Z Sulaiman, N Zakuan - 2021 - repository.kln.ac.lk

A Maisyaroh, W Sutopo, AM Rasli - Advanced Science Letters, 2017 -

ingentaconnect.com

SN Wahab - 2021 International Conference on Data Analytics …, 2021 -

ieeexplore.ieee.org

Lai Chang Wen; Shaun Chong- 2014- https://en.wikipedia.org/wiki/Ninja_Van

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