Contents

Module (1): Current Situation..........................................................................................................2

Introduction..................................................................................................................................2
1. Current Performance and Position........................................................................................3
2. Strategic Posture:.....................................................................................................................5
a. Mission..............................................................................................................................5
b. Objectives..........................................................................................................................5
c. Policies.................................................................................................................................5
3. Strategic Managers...............................................................................................................7
A. Board of Directors.............................................................................................................7
b. Top Management...............................................................................................................8
Module (2): Environmental Scanning............................................................................................10
1. Situational Analysis: SWOT Analysis................................................................................10
2. Opportunities & threats Table.............................................................................................11
3. Priority Matrix....................................................................................................................12
4. Strategic Group Mapping...................................................................................................13
5. External Factors Analysis Table “EFAS”...........................................................................14
Ch2: Internal Environment Analysis:.............................................................................................15
1. Description of the Company...............................................................................................15
2. Illustration & Analysis of careem Organization Structure & Chart:..................................16
3. careem Organizational Analysis “Strengths & Weaknesses Table”....................................17
4. careem Internal Factors Analysis Table “IFAS”.................................................................18
5. careem Value Chain............................................................................................................19
6. The core & distinctive Competencies of careem................................................................22
7. VARIO Analysis of core & distinctive Competencies........................................................23
8. The Expected Competitive Advantages of careem.............................................................24
Module (3): Strategy Formulation:................................................................................................25
1. Careem Situational Analysis (Strategic Factors Analysis Summary (SFAS) Matrix)
25
2. Careem Mission Review:....................................................................................................25
 3. Careem objectives illustration & Review:..........................................................................26
4. Careem TWOS Analysis.....................................................................................................26
5. Careem Strategy:................................................................................................................34
6. Careem Generic strategy:...................................................................................................35
7. Careem cooperation agreements & entry modes in foreign countries:...............................35
Module (4): Strategy Implementation:...........................................................................................38
1. Careem strategy implementation problems........................................................................38
2. Careem Structure Compatibility to the Strategy.................................................................39
3. Careem Strategy Compatibility to its life Cycle Stage.......................................................40
4. Samples of Careem strategy implementation actions plans...............................................42
Module (5): Evaluation & Control.................................................................................................44
Summary & Conclusion.................................................................................................................46
Module (1): Current Situation

Introduction

Careem is a multinational transportation network service company based in Dubai with

operations in 53 cities in the Middle East, North Africa and South Asia. The company
was co-founded by Mudassir Sheikha and Magnus Olsson, who had both worked as
management consultants at McKinsey & company.

Careem started operating in July 2012 in Dubai as a website-based service for corporate
car bookings and then evolved to be a transportation network service company with car
hire for everyday use. Due to increasing demand, the mobile app was introduced, and
accordingly the service shifted from being a car service targeting corporate clients to a
service targeting individuals looking to book a local car hire for everyday use.

The company has expanded its operations to include over 12 cities across the middle
East, including Egypt, Bahrain, Beirut, Dammam, Dhahran, Doha, Abu Dhabi, Jeddah,
Kerachi, khobar and Riyadh – with a total of over 100,000 users.

Careem faced heavy criticism in Egypt at the beginning of 2016 by local taxi drivers for
operating without official taxi licenses. Drivers of White Taxis (standard taxi service
operating in Cairo) organized several protests and sit-ins demanding that the Egyptian
government intervenes to halt the activities of Transportation Service Companies
(TNCs).

Taxi drivers argued that TNCs are illegal taxi operations that take away their business.
Not only are they operating illegally but also bypassing rules and regulations governing
taxi services in Egypt, including the heavy cost of acquiring a taxi license. As a result a
committee was organized by the Egyptian government to assess the complaints of the
protesting taxi drivers and standardize taxi services in Egypt. They ruled in favor of
Careem and Careem, ensuring that they can operate legally and provide legal
protection for the drivers who had been facing attacks by both state police and angry
local taxi drivers.
 1. Current Performance and Position
Careem is an app-based car service that connects people to rides in a matter of
minutes, at the tap of a button. It provides reliable, safe, convenient and affordable
transport specifically tailored to suit your daily needs.

It has a market valuation of 1.2 billion dollar and total funding of 571.1 million dollar

With a user base of six million customers and a network of 150,000 drivers, Careem has
become the region's largest ride-hailing platform. Its success is down to a
combination of a head start over Uber, local knowledge, and home-field advantage

Careem is this region’s favorite car-booking app. With 30% monthly growth, they now
operate in 50+ cities across 11 countries and host over 6million users in the Middle
East & North Africa (MENA) region in addition to Pakistan.

With their recent Series D funding success, they are positioned on the cusp of significant
scale and well on target to deliver their goal of creating one million jobs in the region by
2018.

Sales

As careem is a service brand not a good so there are not accurate representations of it's
''sales" but there is an estimated revenue for its services which is stated to be 175
million dollars
2. Strategic Posture:

a. Mission

Careem's mission is "to simplify the lives of people and to build an awesome institution
that inspires! We put people at the heart of our purpose and we want to WOW them
with every interaction."

b. Objectives

 Creating awareness for company and its products

 Encourage product trial for potential new customers
 Increasing short term sales by stimulating actions to increase lead
 to increase customer loyalty
 By 2020, Careem company aim to create one million job opportunities
 It wants to attract $10 billion in terms of investment in the public transport
infrastructure, and have a presence in an all urban and sub-urban cities.
 Sustainability has been established at Careem since 2015 in Egypt based on
specific targets and KPIs and it aims to keep on implementing it.
 Increase employee relations and establish relationships with captains/drivers.

c. Policies

Careem in-ride policy

Careem loves its Customers, Captains, Colleagues, and Communities. We all recognize Captains
as our true warriors and trusted partners who move us, our kids, and possessions safely across
hundreds of cities. To ensure an awesome experience for all of us, we ask our Customers to be
mindful of the below in-ride policies:
Be Careem to your Captain

 Greet your Captain with a smile, and be respectful at all times

 Feel free to play your jam, but be mindful of loud music and conversations that may
distract Captains while driving

Keep the cars fresh and clean

 Please avoid any form of littering, spilling food, banging car doors; this is unfair to the
captain, the next customer and to Careem’s quality.

 If you must smoke, please do so outside a Careem car

*Car damages caused by Customers must be compensated by Customers

Ensure full and instant payment of your full fare - no delays!

 Cash payments: Keep enough cash and change ready in advance. Otherwise, ask your
Captain to stop by an ATM to ensure instant settlement

 Card payments: Ensure your debit/credit card is uploaded and valid

*Late payments and non-settlement lead to unfortunate deactivation of Careem services.

3. Strategic Managers

Chairman and
Executive
Chief
Officer
Chief Finance
&Developme VP, Product and
nt Offic VP, Produ
er ct
Business
MD,
LevelFleet,MD of
Egy
Function
pt
Research
Level
Developme
&
ntH
R
Market
ng
Finan
ce
Medi
a
A. Board of Directors

 Mudassir Sheikha

 CEO and Co-Founder of Careem

 Magnus Olsson

 Co-Founder of Careem

 Bassel Al Nahlaoui

 Managing Director - Mobility of People + UAE/Pakistan

 Ibrahim Manna

 Managing Director - Global Markets

 Ruth Fletcher

 VP of People at Careem
  Adeeb Warsi

 Managing Director - Mobility of Things

 Ashish Jain

 Senior VP of Finance at Careem

b. Top Management

Corporate -level

Compared to business strategy, corporate strategy examines success from a higher

level. Corporate strategy is focused on obtaining a mix of business units that will allow
the company to succeed as a whole.

Business-level

strategy focuses on how to attain and satisfy customers, offer goods and services that
meet their needs, and increase operating profits. To do this, business level strategy
focuses on positioning itself against competitors and staying up to date on market
trends and technology changes.

Functional level

strategy is a response to operational level strategy. It advocates for the business to see
its management decisions as specific to a functional area of the organization, such as
marketing, human resources, finance, information management and public relations.
The advantages of this are that employees and resources can be assigned to the tasks
that best suit their skills and interests. If you have an employee with expertise in HR,
for instance, it makes logical sense to assign her to the human resources function
instead of the finance division. Functional level strategy aims to see people and
resources as an end in themselves, not a means to an end.

Careem operates as a single business firm, where top executives are at the corporate
level and in the functional level we can find the departments heads.

Careem is a mix of both vertical and horizontal which is called matrix structure. (hybrid).

Matrix structures

Highly dynamic and creative companies, such as software developers, architecture firms,
special industrial equipment installation projects, event organization companies and
others typically use this structure. A series of specialized employees, ready to compose a
work team as needed characterize this structure.

This structure is widely used both by companies that are constantly launching new products
and marketing campaigns. For example, companies that have project based structures, but
also believe that functional supervision is necessary and important Each project must act
independently. Therefore, it’s important to have a senior manager of each department
(finance, operations, HR, marketing etc.) that can verify that everything is in accordance
with policies and the level of services appropriate for the company.
Module (2): Environmental Scanning
1. Situational Analysis: SWOT Analysis
Strengths
1. It has a high standard of service, verified
drivers and cars.
2. Operatonal cost is quite low. As it relies
on customer-to-driver interacton.
3. Ratng system boosts trust and safety.
4. The prices are lower compared to
traditonal taxi operators.
5. Experienced and qualified
employees
Opportunities
1. Customers are often dissatsfied with
traditonal cab companies because of high
prices and long waitng tme.
2. It can exploit new and big markets in
countries where taxi services are
inconvenient and expensive.
3. Rise in number of drivers will reduce the
estmated tme of arrival. This will make
Careem more liked. The startup will get
more revenue and drivers will be profited as
well.
4. New markets to explore and various
services to be different in
5. Constant changing customer needs that
can be fulfilled
comment
Weaknesses
1. The idea can be easily imitated.
Nothing will prevent competton
from presentng the same product.
2. Company and its customers have no
bonding. Customer loyalty and
Incentve to remain with Careem is
low.
3. There are privacy concerns. Careem
records where customer gets the taxi
from. It also notes where he goes
with it.
4. Weak Complaint System.
Threats
1. Drivers aren’t happy with the low-
profit margins. This might lead to bad
2. publicity. This can in turn discourage
the new drivers from joining Careem.
3. Some new legal regulations in
countries will ban Careem from operating.
4. Problems with local authorities can
lead to fines.
5. Increasing competition will
ultimately decrease prices.
6. As new markets and drivers are
joining, fraud and scandals are also
increasing.
7. It is damaging for the brand.
8. Customers safety compromised due
to security breaches.
9. Careem affected by Nature
 2. Opportunities & threats Table

Factors Opportunities Threats

Task Environment: (Industry analysis) customers who prefer a
private car instead of local taxi a
1. Customers
2. Suppliers
3. Competitors
4. Retailers/Distributers
5. Government
6. Others
General Environment: (STEEP acceptable and respectable It has faced controversies related to
Analysis) image competton, laws, human resources
. and even related to background
1. Socio-cultural social image has been strong. checks for its drivers
2. Economic it is connected with goods, economic factors are inflation
services, and money price of car gas "benzene
o increasing the fair and the value of
the ride became unaffordable for the
middle- and low-income class
Careem affected by Nature

3. Political/Legal demand for product and tax programs,

service minimum wage, legislaton, polluton
government make a deal with and pricing policies, government
careem policies
4. Technological Careem growth has been both
rapid and easy

5. Ecological
 3. Priority Matrix

Probable Impact on Corporation

Probability of Occurrence

High Medium Low

High High Probability: medium Probability low Probability 4

Product innovaton Currency risk

Economic prosperity in
High quality supplier Egypt
High employee To export from more
productvity countries with a less taxes
eco-modernizaton in
the automotve industry
like green car

Medium High Probability Medium Probability Low Probability

Increase of gas price and Foreign currency shortage Free trade zones make
the taxaton domestc
High quality supplier and
niche market from the
suppliers

An innovaton in car to be
an electric car and new
technology in car that can
make a different in this
industry

Comment
 4. Strategic Group Mapping

comment
 5. External Factors Analysis Table “EFAS”

Factors Weigh Rate Weighte Comments

t or d
Impa Average
ct
(1-5)
Opportunities:
1. It is a very much perceived
0.15 5 0.75
1. It is a well-recognized brand
brand
2. Unlimited fleet of vehicles 0.05 4 0.20
3. Careem has no full-time 2. unlimited armada of vehicles
0.10 3 0.30
drivers 3. Careem has no full-time
0.05 1 0.05
4. Operational cost is quite low drivers
5. Very little competition 0.15 4 0.60
4. Operational expense is very
low
5. Almost no opposition
Threats:
1. Regulation may affect
1. Stricter government policies 0.10 1 0.10
2. Economic instability operations
0.08 5 0.40
3. Greater emphasis on green 2. Reduce confidence
solutions 0.20 3 0.60
4. Several heavy competitors 3. Needs heavy investments
0.05 4 0.20
5. Limited number of suppliers 4. Aggressive competition in the
0.07 2 0.14
market
5. Poor performance

Total 1,00 3.34

Comment: This company is doing better than their competitor’s because 2014 careem
is valued more than 40 billion dollars and is expected to have annual revenue of 10 billion
dollars by the end of 2015. careem has expanded to some 60 cities on six continents and
grown to at least 400 employees. Millions of people have used careem to get a ride, and
revenue has increased at a rate of nearly 20 percent every month over the past year.
Currently Lyft who is their competitor is worth only 2 billion dollars. Which is a 38-
billion-dollar difference.

Ch2: Internal Environment Analysis:

1. Description of the Company

Careem is a multinational transportation network service company based in

Dubai with operations in 53 cities in the Middle East, North Africa and South Asia.
The company was co-founded by Mudassir Sheikha and Magnus Olsson, who
had both worked as management consultants at McKinsey & company.
Careem started operating in July 2012 in Dubai as a website-based service for
corporate car bookings and then evolved to be a transportation network service
company with car hire for everyday use. Due to increasing demand, the mobile
app was introduced, and accordingly the service shifted from being a car service
targeting corporate clients to a service targeting individuals looking to book a
local car hire for everyday use.
The company has expanded its operations to include over 12 cities across the
middle East, including Egypt, Bahrain, Beirut, Dammam, Dhahran, Doha, Abu
Dhabi, Jeddah, Kerachi, khobar and Riyadh – with a total of over 100,000 users.
Careem faced heavy criticism in Egypt at the beginning of 2016 by local taxi
drivers for operating without official taxi licenses. Drivers of White Taxis (standard
taxi service operating in Cairo) organized several protests and sit-ins demanding
that the Egyptian government intervenes to halt the activities of Transportation
Service Companies (TNCs).
Taxi drivers argued that TNCs are illegal taxi operations that take away their
business. Not only are they operating illegally but also bypassing rules and
regulations governing taxi services in Egypt, including the heavy cost of acquiring
a taxi license. As a result, a committee was organized by the Egyptian
government to assess the complaints of the protesting taxi drivers and
standardize taxi services in Egypt. They ruled in favor of Careem and Careem,
ensuring that they can operate legally and provide legal protection for the drivers
who had been facing attacks by both state police and angry local taxi drivers.

2. Illustration & Analysis of careem Organization Structure & Chart:

Comment
3. careem Organizational Analysis “Strengths & Weaknesses
Table”
Factors Strengths Weaknesses

1. Organizational  Vision (and mission)

Culture  Values.
 Practice
 People
 Narrative
2. Organizational  Tangible Assets  it favors just powerful pioneers
Structure  Intangible Assets since helpless pioneers settle on
 Human Assets helpless choices which makes
impact the entirety.

3. Product Mix  Strong brand image  Some of the drivers are very
(Marketing):  Faire prices annoying
 Product  Located in many nations  Promos expire very fast
 Price  Give a lot of promos
 Place
 Promotion

4. Operations  Hiring facilities  Time consuming

 Control rooms
5. Research &  Simulated intelligence and  Time consuming for learning
Development Digital innovation have brought
a few new open doors for the
vehicle brands regarding
advertising and inventory
network the board.
6. Financial  Flexibility of assets
7. HR  Good character  HR instructor spent a lot of
 Good instructional classes time in evaluating
employees

8. Information System  Large data base

Comment:
careem has dealt for certain astounding qualities which incorporate a conveyance
organization. Aside from that it has likewise dealt with its inventory network with
 proficiency. It is looking for quicker development for which the brand should zero in
on.

4. careem Internal Factors Analysis Table “IFAS”

Factors Weigh Rate Weighte Comments

t or d
Impa Average
ct
(1-5)
Strength:
1. It is a very much perceived
0.05 5 0.25
1. It is a well-recognized
0.20 2 0.40 brand
brand
2. Unlimited fleet of 0.05 3 0.15 2. unlimited armada of vehicles
vehicles 0.10 4 0.40
3. careem has no full-time drivers
3. careem has no full-time 0.05 2 0.10
drivers 4. Operational expense is very
4. Operational cost is quite
low
low
5. Very little competition 5. Almost no opposition
Weaknesses:

1. The idea can be easily

0.05 2 0.10 1. The thought can be effectively
imitated. imitated.
2. company and its 0.10 5 0.50
customers have no
bonding 0.15 3 0.45
2. company and its clients have
3. Costs of operating no holding
vehicles are very high
0.25 3 0.75
4. Very Unpredictable
business model.
3. Costs of working vehicles are
high

4. Very Unpredictable plan of

action.

Total 1.00 3.1

Comment
 5. careem Value Chain
Inbound Operation Market After
logistics s sale
Primary Activities

 Pricing  Requesting the  print and  map

ride. media
 Transportation  gbs tracker
 Ride.  advertising
 Fuel sales Profit
 Pay and Go
 promotions
Margi
events n
 experiences

• Product development, market research, staff

Support Activities

recruitment and training

• Equipment, raw materials

• Database marketing, internal sales, transaction

processing system

Comment:

careem Inbound logistics

Generally, inbound logistics involves receiving and storing raw materials. careem, the largest taxi
technology company in the world, does not own the vehicles it uses to serve customers. The
vehicles are owned or rented by Careem drivers, who are not employees, but contractors. Careem
drivers need to possess smartphones to use Careem app software. Careem users, i.e. customer
also must have access to a smartphone or mobile website to be able to use the service.

Therefore, value addition in Careem inbound logistics relates to internet-based nature of business
operations and the business model of the company. Specifically, thanks to its business model,
despite the large size of the business, Careem inbound logistics is only limited to mainly
hardware and office equipment needed to sustain the business.
careem Operations

Careem operates in more than 760 cities worldwide. The usage of Careem services involves the
following stages:

1. Requesting the ride. Customers can use Careem app to tap each ride option to see wait
time, size, and price. Customers can enter their pickup location and tap-request for their
driver to arrive in minutes.
2. Ride. Customers are able to see contact information of their driver, as well as, vehicle
details on the app. This ensures that customers get into the right car.
3. Pay and Go. When they reach their destination, customers simply hope out of the car and
rate their driver. Customers don’t need to have cash or credit cards with them; Careem
automatically charges credit card on file.

Careem operations are highly sophisticated and customer-centric thanks to its app equipped with
advanced functions and capabilities. Therefore, it can be argued that Careem app is one of the
main sources of value in Careem operations.

careem Outbound Logistics

Outbound logistics in value chain analysis is associated with warehousing and distribution of
products. Outbound logistics does not fully apply to service sector such as ride-hailing due to
inseparability of delivery and consumption of services. As discussed above, Careem operates in
more than 760 cities worldwide and internet-based nature of its business model is a major source
of value for the global taxi technology company.

careem Marketing and Sales

The ride-hailing giant mainly relies on social media marketing and word-of-mouth marketing to
communicate its marketing message to the target customer segment. Moreover, Careem uses
print and media advertising, sales promotions, events and experiences and public relations as part
of its marketing strategy. Convenient payment method is a major source of value addition for the
company. Careem automatically charges the credit card registered with the app. Therefore,
Customers don’t have to have cash or credit card when they reach destinations.

careem Service

High level of customer service is one of the core competitive advantages for Careem. Good
customer service is effectively integrated into Careem business model. Riders rate their drivers
on the scale of 1 to 5 after each journey and accounts of drivers with average low riding scores
are promptly deactivated. Drivers therefore have an incentive to maintain a clean car and provide
good service.

Each ride receipt includes a map and a GPS track. Customers can complain if their driver took a
longer route to reach the destination. Careem is assessed to be prompt in issuing refunds in such
situations.

Support Activities

Support activities help the primary activities in creating an advantage over

competitors, and they include:

1. Firm Infrastructure

This entails all the management, financial, and legal systems a business has in
place to make business decisions and effectively manage resources.

2. Human Resource Management

Human resource management encompasses all the processes and systems

involved in managing employees and hiring new staff. This is especially important
for companies that provide in-person service, and excellent employees can be a
competitive advantage.

3. Technology Development

Technology development helps a business innovate. And technology can be used

in various steps of the value chain to gain an advantage over competitors by
increasing efficiency or decreasing production costs.

4. Procurement
This is how the resources and materials for a product are sourced and suppliers
are found. The goal is to find quality supplies that fit the business’ budget.

6. The core & distinctive Competencies of careem

Core Competencies

Careem guiding principle include "we build globally, we live locally, we customer
obsessed, we celebrate differences, we do the right thing, we act like owners, we
persevere, we value ideas over hierarchy, we make big bold bets." With these qualities,
Careem has become well known as the most powerful, dependable, and dynamic
ridesharing organization. The extent of activity of this organization shows that it has
extended its range to the worldwide level so that it causes travel to feel neighborhood. Its
capacity to address the issues of individuals sharing various foundations, tweaking
administrations to any semblance of the clients, giving them a run for their cash, and going
all out to be the best are values that have taken the organization the level it appreciates.
These are approved by the need Careem provides for Ideas and perceiving the client as a
fundamental segment of this business.

Distinctive Competencies:

Distinctive competence refers to some characteristic of a business that it does better than
its competitors. Because the business is able to do something better than other businesses,
that business has a competitive advantage over other businesses. Distinctive competence
can occur in various areas, including technology, consumer relations, marketing, or the
people that work for the business. Careem didn't create cell phone maps, GPS following
frameworks, cell phone installment lodgment, or in any event, rating and input programs.
What they really did is assembling every one of these advancements in a very much
planned bundle that clients wanted. Authors did as such under the haze processing
framework; an interface where numerous projects can work together to serve a capacity.
7. VARIO Analysis of core & distinctive Competencies
The most significant assets of the Careem stage are its system impact. It is critical to
have legitimate information, calculations and ability to examine the experiences. The
system impact between the members for example drivers and travelers ought to be
appropriate and powerful. Alongside this, the Careem application is additionally
critical to oversee. Any issue or mistake to the application can prompt enormous
misfortune to the organization.

Laborers of the organization are gifted and capable in the zone of logical, specialized
and the board aptitudes. Enrollment of the city administrators and huge number of
showcasing groups help organization in coming to the clients and improving their
methodologies. The viable steering and estimating calculations are important assets of
the Careem which are created by its in fact capable workers. With the assistance of
this, Careem administrations are progressively proficient and successful.
 Value: System impact, Careem application and calculations are significant assets of the
organization
 Rarity: The easy-to-use access to the application of Careem is uncommon and rivals
can't get such kind of access.
 Inimitability: It is hard for the contenders like Lyft to duplicate the evaluating and
application calculation of the Careem
 Organization: The Company is composed and made do as for all the talked about assets.

8. The Expected Competitive Advantages of careem

there are other companies operating in the market, but an entity the size of Careem and
Careem makes it difficult for them to compete, given the new investors’ need to pump
large investments in the beginning.

Careem’s and Cream’s service quality declined recently, but there were no suitable
alternatives, making options limited for the user.
 Module (3): Strategy Formulation:
1. Careem Situational Analysis (Strategic Factors Analysis Summary (SFAS)
Matrix)

Factors Weight Rate or Weighted

Impact Average
(1-5)

 Unlimited fleet of vehicles (O) 0.10 5 0.50

0.10 2 0.20
 Very little competition (O)
0.10 4 0.40
 Economic instability (T) 0.10 3 0.30
0.10 5 0.50
 Greater emphasis on green solutions (T)
0.15 2 0.30
 Several indirect competitors (T&O) 0.10 3 0.20
0.10 4 0.40
 It is a well-recognized brand (S)
0.15 2 0.30
 Company and its customers have no bonding (W)
 Costs of operating vehicles are very high (S&W)
 Very Unpredictable business model (W)

Total 1.00 3.1

 2. Careem Mission Review:

Careem's mission is "to simplify the lives of people and to build an awesome
institution that inspires! We put people at the heart of our purpose and we want to
WOW them with every interaction."

Comment

3. Careem objectives illustration & Review:

1. Creating awareness for company and its products

2. Encourage product trial for potential new customers
3. Increasing short term sales by stimulating actions to increase lead
4. to increase customer loyalty

5. By 2020, Careem company aim to create one million job opportunities

6. It wants to attract $10 billion in terms of investment in the public transport
infrastructure, and have a presence in an all urban and sub-urban cities.
7. Sustainability has been established at Careem since 2015 in Egypt based on
specific targets and KPIs and it aims to keep on implementing it.
8. Increase employee relations and establish relationships with captains/drivers.

4. Careem TWOS Analysis

External Opportunities: Threats

Internal O1: Emerging T1: High
need for careem competition
services T2: Fraud and
O2: Technology scandals of drivers
advancement T3: Loss of
O3: High customers
 potential growth T4: Lawsuit against
and social Careem
acceptance T5: Dissatisfaction
O4: Competitors of drivers
Inefficiencies
Strengths: OS Strategies: TS Strategies:
S1: Trust 1. S-O is strategic 1. Careem should increase
and tactics emerge by their customer awareness
safety: opposing Strengths with about the features of the
dual rating Opportunities. The payment system to avoid
system TOWS Matrix analysis loss of customers. This
S2: Simple will show how can we because based on SWOT
use use the strengths to analysis, Careem used
friendly benefit from existing cashless payment that can
mobile external opportunities. track and choose highly
application The first S-O is a dual rated drivers. It also has
S3: rating system many other features like
Convenien encourages emerging getting a car easily and
t for driver need for Careem having a record of the
(flexible services. The customers spending. Therefore, with
hours, part will rate the services many useful features, it can
time) that were provided and increase the unique
S4: also can comment proposition value of the
Cashless regarding any system which can attract
payment unsatisfied on services. more customers (S4+T3).
system Customers have a
S5: platform to complaint to
Unlimited get better services in the
fleet of future. Compare to the
vehicles taxi services, the taxi
owners maybe ignore
about customer
complaints. But in
Careem service, all
customer feedback
information will collect
and used for improving
the existing system.
Also, the Careem driver
can rate the system on
behalf as drivers. The
driver can express their
opinion about the
efficiency Careem
system. The rating from
both sides become the
emerging need for
Careem services is
needed in a modern
transportation system.
(O1+S1)

2. Second S-O is using

friendly mobile
application by taking
advantage of
technology
advancement. The user
can book an Careem car
by access to Careem
application that was
installed on their phone.
This way is far better
than to book a taxi via a
call. The technology
that kept advance
become to easier to user
like strong internet
connection can allow
users of Careem cars to
booked a car from
everywhere. (O2+S2)

3. The job type is

convenient for the
driver that will be one
of the factors of high
potential growth and
social acceptance is the
third point of S-O. The
working hours for
Careem driver are
flexible which is
determined by their
oneself. There are also
some people do as an
Careem driver as a part
time job to make side
income. This scope of
employment will be
high potential growth
and social acceptance as
one of the good part
time job. (O3+S3)

4. Next S-O is a
cashless payment
system drive to
competitors look
inefficiencies. The
cashless payment
system that was used in
Careem car is looking
more systematic way
compare to pay money
in hand upon use
service. This method
will give convenient to
customers from burden
to carry a lot of money
that has a risk of stolen
especially in the middle
night. Customer just
need to top up to their
Careem E-Wallet App
before booked a car.
The conventional
method of payment like
pay in cash is used by
taxi car make their
services is an
inefficiency. (O4+S4)

5. The last Internal

Strengths and External
Opportunities (S-O) is
an unlimited fleet of
vehicles can be able to
attract larger target
audience. There are a
variety of cars like
sedan, SUV or MPV
and variety of services
like Plus, Premium and
Executive. Different
person has a different of
need. For whom want a
better service and costly
 car can choose an
CareemCar Premium.
While for a middle-
class person can use
CareemCar Share
which just needs to pay
less than normal price.
The affordable price
was offered from
Careem car make is
cheaper compare to taxi
car. Low income people
also have a chance to
grab this good
convenience and will be
the main transportation
mode for all people
after the bus and train.
(O5+S5)

Weakness OW Strategies: TW Strategies:

es: 1.Careem should 1. Careem need to change
W1: Using provide more employee their pricing method from
dynamic benefits and welfare to dynamic to fix according to
pricing gain larger target the distance the customers
method audience such as by travelled rather than
cause giving them insurance according to demand (time-
surge in coverage, monitoring based). Careem’s biggest
price driver safety, discount competitors are taxicabs,
W2: on car inspection and similar app-dispatched ride
careems provide worth percent services like Lyft, Sidecar,
do not of fare. This will attract Hailo, Wingz, Gett, and
give a more driver from all ZimRide. By having a fixed
priority around the world to pricing, Careem can attract
regarding work with Careem and more customers as the price
a safety driver will provide the offered by Careem will be
and best services they can relatively cheaper than its
privacy of because of the rewards competitors during high
consumers they received. Thus, demand. This will
. large target audience encourage customers to
W3: from difference choose Careem service
Careem background, where it will increase the
operates demography and profit of Careem and
by geography can be improve its performance.
ignoring received. (O5+W5) Careem may sustain in this
taxicab 2. Implementation of market by giving tough
regulation maximum pricing value competition to their
s method can be applied competitors due to their
W4: by careem as they performance. (W1+T1)
Violating determine the fare price 2. Careem need to give more
federal law according to demand priority to safety and
for and supply. Careem privacy of customers in
commercia should make the order to avoid loss of
l calls maximum fare that they customers. Ride-sharing
(social will charge to the service has its own safety
media customers when the standards where it includes
campaign) demand is too high. the most thorough
W5: Not This is because when background checks. Not
taking the demand is high, the only comply with safety
care of the rate of fare will also standards, Careem need to
welfare of increase until price comply with the taxicab
employees reaches the equilibrium industry regulations in order
(drivers) point that could risks to improve the safety and
Careem performances. privacy of customers. This
High number of fare will ensure that the
rates will make the customers will be more
customers to choose the confident to use Careem
other service service which will increase
substitutes. With this, it the customer loyalty
will help Careem to towards the brand. (W2+T3)
ensure the emerging 3. Careem need to give
need of their services. attention towards the
(O1+W1) welfare of employees to
3. Careem shall improve their satisfaction.
optimize the As Careem classify their
advancement of drivers as independent
technology in the contractors or freelancers,
Careem applications. Careem does not give much
They can implement importance on welfare of
new functions that their drivers. To improve the
could give more safety welfare of drivers, Careem
and privacy towards can give a minimum wages
Careem customers such per day for their drivers
as GPS tracker, direct although they do not get any
police emergency calls customers. Careem should
button, ability of prepare insurance for their
customers closed drivers in order to give a
contact to track their minimum assurance towards
location and guarantee their safety. This actions
on the confidentially of may enhance the satisfaction
customers data. of the drivers towards
(O2+W2) Careem which will help in
4. Development of to increase the reputation of
Careem regulations that the brand. (W5+T5)
are not contradict with
taxiCab regulations
shall be implement by
Careem. The
regulations should
focus on how they can
protect every party’s
safety, interests and
privacy. For instance,
the regulations should
include the terms and
conditions that should
be follow by the
drivers, minimum trial
period needed for
drivers to be as part of
official Careem drivers,
maximum hour drivers
can work per day and
penalty that will be
taken by Careem if
there is any misconduct
activities. Thus, it will
help Careem to increase
high potential of growth
and received social
acceptance. (O3+W3)
5. Loyal customer’s
feedback and review
shall be collected by
Careem to understand
current business
performances and make
further improvement
when needed. Instead of
creating campaigns
through social media
that could make Careem
being sued, they can use
social media platform to
received customer’s
feedback and review on
Careem performances.
Hence, they can make
further improvement
and changes on the
application and services
they provide to gain
competitive advantage.
(O4+W4)
 5. Careem Strategy:

Careem e-mail marketing primary methods for correspondence for Careem is email
showcasing. Careem ideally utilizes email advertising. Careem utilized two ongoing
endeavors to refresh its clients. One is advancement of the administration and giving
different offers. The other is an email that give data with respect to any issues with the
administration. One is a basic postcard that touts the advantages and makes an
extraordinary offer. Careem Inbound Marketing does astound inbound showcasing by
first pulling in its forthcoming clients. It does as such by offering credits to each new
client and to the previously existing clients who allude them to Careem. These Careem
credits offer an incentive to the two its old and new potential client. Thusly, Careem
changes over its leads effectively. At that point, Careem shuts its chances easily by
sending a programmed receipt through email and furthermore requests rating right away.
The rating is done from both client and driver end. With its effective inbound advertising,
I am likewise one of the authority’s careem client out of 8 million clients that are spread
across 60 nations. Careem online life optimization is dynamic on Facebook, Instagram,
twitter, Careem has taken 'shock and joy' to a totally new level. Careem is preferred by 3
million individuals on Facebook and has around 143k adherents on Instagram, 348k on
LinkedIn and 438k on twitter. Delegate currently empowers it’s a huge number of clients
to pursue Careem with one tap and solicitation a ride, all without leaving Messenger or
download the Careem application. Careem refreshes its supporters with their most recent
assistance on exceptional event through all these interpersonal interaction sites. Careem
vital partnership accepts that any application with a guide is a potential Careem API
accomplice. They band together with different organizations like: Zomato, BookMyShow,
PayTm, Foursquare, MiniCooper, Expensify, Hinge, Hyatt Hotels and Resorts, Memento,
Open Table, Starbucks Coffee Company, Tempo Smart Calendar, Time Out, Trip Advisor,
Trip Case and United Airlines. Careem Influencer Marketing 'Rider Zero' crusade roped
in key influencers from each city to evaluate Careem's administration just because 'subtly'
and tweet about it. Careem utilized influencer advertising to connect with a large number
of devotees every one of these big names has on Twitter to make a huge buzz around the
Careem taxi administration.
 6. Careem Generic strategy:

Careem Makes a Swift Ride in the Middle East with Careem Acquisition adopts
the focus strategy both in terms of low cost and offering the best value. The low-
cost focus strategy is adopted by serving the needs of a niche market segment at
the lowest possible price. While, best value focus strategy is adopted by
emphasizing over the taste, size and design of the product that could best match
the customers’ needs and requirements.
By focusing on product attributes, Careem Makes a Swift Ride in the Middle East
with Careem Acquisition revises its branding strategies and brings continuous
changes in the product designing and packaging to satisfy the customers’
psychological expectations and maximize value for money.

7. Careem cooperation agreements & entry modes in foreign

countries:

Intensive growth strategies deal with the development of new products or markets
to accomplish corporate growth objectives. The multinational companies like
Careem Makes a Swift Ride in the Middle East with Careem Acquisition consider
these strategies to understand how to further penetration into existing markets is
possible and how the customer base can be expanded through the market and/or
product development. Intensive growth strategies help the firms to grow quickly
by actively seeking the product/market expansion opportunities. The unique
combination of the three main generic strategy streams- cost, differentiation and
focus set the basis for Careem Makes a Swift Ride in the Middle East with Careem
Acquisition’s intensive growth strategies. These growth strategies are depicted
into the Ansoff’s product-market expansion grid, which includes four dimensions-
market penetration, product development, market development and diversification.

The choice of each growth strategy is dependent on the level of competition, target
market characteristics and unique organizational growth objectives.
  Careem Corporative Strategies:
Careem Makes a Swift Ride in the Middle East with Careem Acquisition uses market
development as a growth strategy that supports market penetration and product
development. The organization has extensively applied this strategy, and as a result, it is
currently present in more than Competitor countries. The successful entry in new
consumer markets has played a key role in making Careem Makes a Swift Ride in the
Middle East with Careem Acquisition a global brand. Main reasons behind the worldwide
presence are- affordable prices, strong brand name and flavor. Besides these factors, the
successful marketing and celebrity endorsed promotional campaigns have also helped
Careem Makes a Swift Ride in the Middle East with Careem Acquisition in capturing new
customers and becoming the market leader in many countries.
Through on-going investment in research and development, the company continuously
expands the distribution network to reach every corner of the world, particularly in
developing countries where the presence is currently weak. However, a company is
already entered in most of the markets all over the world; market development now only
acts as a supporting strategy and has secondary importance.
The Careem Makes a Swift Ride in the Middle East with Careem Acquisition’s strategic
objective of applying this strategy is to expand the value chain so that it could support the
distribution network growth. Careem Makes a Swift Ride in the Middle East with Careem
Acquisition's ability to minimize the costs and attain the cost leadership position allows
the organization to apply this intensive growth strategy successfully. The cost
minimization supports the additional investment made by the Careem Makes a Swift Ride
in the Middle East with Careem Acquisition to enter in new consumer markets.
Multinational firms like Careem Makes a Swift Ride in the Middle East with Careem
Acquisition have four ways available to apply this intensive growth strategy- developing
new distribution channels, creating new market segments by charging varying prices,
developing new product dimensions or considering new geographic areas. The geographic
expansion requires substantial resource commitment, and it is also necessary for an
organization to evaluate whether current distribution network and other resources support
the decision to enter in that particular geographic region. Entry in culturally distant
 markets is riskier as it requires an organization to be culturally intelligent and built
effective knowledge management mechanisms.
Careem Makes a Swift Ride in the Middle East with Careem Acquisition understands the
importance of understanding culture and integrating local norms and values in marketing
campaigns when entering new geographic regions. High cultural intelligence has helped
Careem Makes a Swift Ride in the Middle East with Careem Acquisition gain acceptance
in culturally diversified consumer markets. The effective application of this strategy also
requires companies to conduct detailed competitor and market intelligence. Well
researched operational, financial and market data is needed to make right market entry
decisions. However, applying this strategy involves the risk of alienating existing
customers.

Module (4): Strategy Implementation:

1. Careem strategy implementation problems

First: Concentrated Growth

Problems that Careem may face include: any change in the transportation segment will lead to
jeopardizing the firm because its investment, competitive advantage and technology are
deeply entrenched in the offering.
 If customer needs change suddenly or any problem occurs in the transportation network
companies industry or if economic problem emerges, Careem will not survive and will be
affected negatively. Also, the opportunity cost of switching is high because Careem chooses to
remain in a specific market.

Second: Market Development

Careem strives to expand and always open in new geographic areas, nationally and
internationally as well as using new advertising methods to attract new customers.

Problems are:

• Cultures of different countries differ as well as people’s mentalities. People don’t

usually accept riding with a stranger in certain countries
• Advertising Budgets are high in costs to operate in new places
• Careem will have to differentiate itself if it wants to launch in new places where Uber
already exists. And need to level up to the competition with new offerings

Third: Product Development

Problems:

• If Careem misunderstands customer’s needs, this will lead to customer dissatisfaction.

• Market Research and R&D are costly
• Careem’s existing products need to expand its sales in order to produce new products
and lines

Fourth: Innovation

• The risk of innovative ideas are large, and the innovative idea might not always
succeed in the market and gain positive feedback
• The cost of innovating is large, because it requires technology, software development
and qualified human capacity and staff.
 2. Careem Structure Compatibility to the Strategy

Careem as a result follows an organic structure that’s both horizontal and vertical Matrix. It
constantly adapts to the changing environment and remains flexible.

Careem pick from the vertical structure:

a) Vertical communication; top managers pass information downward to employees about goal
and strategies and in return employees provide information up the hierarchy; reporting system;
the HR told me how do they report each other by sending reports for example by emails, they
have to BC the manager and CC the HR.

b) Hierarchy of authority is strict and many rules; in our opinion, having a strict hierarchy of
authority is beneficial more than a relaxed one, because in this point everything has to
organized and employees have to know who they're reporting to and not to get confused.

Talking about the horizontal structure;

a) Decentralized decision making; which we think it's the most efficient way to get the
employees into the task and to make them responsible and loyal to the organization.

b) Empowered role; in our opinion this is the best way to let the employ responsible for his
creativity and ability to achieve the goal.

c) Many teams and task force; which represent teamwork.

Information sharing

Talking about how do careem company share their information; to form the vertical
information sharing careem picked
 a) Rules and plans

And from the horizontal info. Sharing

a) Liaison role;

Careem company is using this approach because sometimes the marketing department in
careem wants to do an event, so they have to coordinate with finance department.

b) Full time integrator; to coordinate between all functions ( one of the HR people) c) Teams

d) Virtual teams; they have a lot of virtual teams for example in dubai.

3. Careem Strategy Compatibility to its life Cycle Stage

Data science projects at Careem fall into four life cycle stages, Bell
explained: data exploration, iterative prototyping, productization,
and finally monitoring. Each step can be optimized. But first, Bell
warned, you must start with the data.

“The way to think about data is like growing a garden,” Bell

explained.
4. Samples of Careem strategy implementation actions plans

Creating awareness for company and its products

• Creating Offline and online marketing campaigns

• Creating Campus visits and booth
By: Marketing Executive

Due Date: September 2121

Encourage product trial for potential new customers

• Introducing Promocodes and lower costs

• Giving new customers their first ride for free
• Approaching people offline and asking whether they have the app
• Engaging in events and sponsorships

By: Marketing Executive

Due Date: July 2021

Increasing sales by stimulating actions to increase lead

• Careem Packages availability

• Introducing new product lines variety like GoComfort, GoValue, Sawa, city to city,
Careem bike. New product could be a bus or van.

By: Accounting Manager and Product Developers

Due Date: February 2022

To increase customer loyalty

• Enhance customer service reliability

• Update the app constantly based on customer feedback to improve CRM

By: IT and Software Managers

Due Date: December 2021

Establishing Sustainability

• Improve CSR by charity events, and donations in Ramadan, Eid and throughout the year
• Using material and resources that are environmentally friendly

By: PR Executive
 Due Date: January 2021

Increase employee relations and establish relationships with captains/drivers.

• Providing training opportunities to captains and employees

• Hire qualified drivers with good attitude/behavior unlike current ones.

By: HR Manager

Due Date: September 2021

Module (5): Evaluation & Control

Objective Standar Actual Differenc Corrective Actions

d e
Creating 
awareness for
company and its
products
Encourage 
product trial for
potential new
customers

Increasing sales  Hiring qualified

by stimulating drivers who
actions to provide a good
increase lead service to users
and are a good
brand image to
the company
To increase Adjust Create a physical
customer loyalty implementatio office to receive
n complaints and
feedback and
facilitate the
process

Establishing
Sustainability
Increase Adjust Create
employee implementatio incentives
relations and n Provide training
establish opportunities
relationships
with
captains/drivers.

Comment

1. <Company NameCorrective Actions: either or

 Adjusting the formulation (design) of strategy or policy or procedure
or program or action plan or budget

 Adjusting the implementation of strategy or policy or procedure or

program or action plan or budget through educating or training or
communicating them well to employees.
 Summary & Conclusion
Careem started operating in 2014 in Egypt as a website-based service for corporate car
bookings and then evolved to be a transportation network service company with car hire for
everyday use. Due to increasing demand, the mobile app was introduced, and accordingly the
service shifted from being a car service targeting corporate clients to a service targeting
individuals looking to book a local car hire for everyday use.Careem faced heavy criticism in
Egypt at the beginning of 2016 by local taxi drivers for operating without official taxi
licenses. Careem’s target market are customers who knows well how to deal with customers
and owns smart phones.

Careem's mission is "to simplify the lives of people and to build an awesome institution that
inspires. They’ve successfully implemented their mission and are working towards their
vision by being sustainable and improving their operations and brand image to their
customers.

By 2020, Careem company aim to create one million job opportunities, It wants to attract $10
billion in terms of investment in the public transport infrastructure, and have a presence in an
all urban and sub-urban cities, Sustainability has been established at Careem since 2015 in
Egypt based on specific targets and KPIs and it aims to keep on implementing it and Increase
employee relations and establish relationships with captains/drivers. Careem’s GoValue
category achieved growth in the market and Is in the growth phase in the product lifecycle.

Careem’s Forces of Industry include: Threat of Entry, Product differentiation, Capital

requirement, Cost disadvantage independent of size and Access to distribution channels:.
Careem isn't a powerful suppliers in this area as it's competitor uber provide the same service
in addition to the local taxies.

On the other hand, The buyers of Careem are not permanent unless they become very loyal to
the company because of their service or any other reasons. With upper hand as they can shift
from one service to another. The shifting cost in the market is low and that’s why customers
are considered powerful buyers.

Substitute services to Careem in Egypt also include: Public Transportation [Mini Buses], Misr
Train Station, Sidi Gaber Train Station, Super Jet, Go Bus, Public buses and Trams.
Careem's most popular competitors in the country are of course: Uber, Osta, the normal taxi
cab and the most recent company to enter the market: O2 Share. Careem is differentiated by
adding the wallet option and with their varies products ex: go bike.careem’s grand strategies
are concentrated growth,market development, product development and innovation.

Careem scored a lot of achievement since they started to operate in Egypt and expanding in
more than one country to level up with uber. Careem’s application is always updated with
trends to satisfy the customer’s needs.

Careem’s structure is an organic, matrix one that requires it to be flexible and constantly adapt
to the changing environment and the technological modifications as well customers various
needs.

In order to level up the competition and maintain its growth in the market, Careem will have
to follow a number of action plans to implement their long term objectives. A couple of those
objectives require a change in the strategy implementation as well as corrective actions,