Should Gojek prioritize expanding into new service categories or improving existing core offerings?

Introduction

The trade-off question at hand is whether Gojek should prioritize expanding into new service categories or improving existing core offerings. This scenario involves balancing growth through diversification against strengthening the foundation of our current services. I'll approach this analysis by examining the business context, user impact, technical feasibility, resource allocation, and strategic alignment.

Step 1

Clarifying Questions (3 minutes)

• Context: I'm thinking about Gojek's current market position. Could you share our market share in our core offerings compared to competitors?

Why it matters: Helps assess the urgency of improving core offerings vs. expansion Expected answer: Strong in ride-hailing and food delivery, but facing increased competition Impact on approach: High market share might favor expansion, while lower share could prioritize core improvements

• Business Context: Based on our financial reports, I assume our core offerings are our main revenue drivers. Can you confirm if this is accurate and if there are any specific revenue targets for new categories?

Why it matters: Aligns strategy with financial goals and risk tolerance Expected answer: Core offerings generate 80% of revenue, new categories expected to contribute 15% in next 2 years Impact on approach: Would influence resource allocation between core and new offerings

• User Impact: I'm considering our user retention rates. Have we seen any significant changes in user churn or engagement across our core services recently?

Why it matters: Indicates whether core offerings need immediate attention Expected answer: Slight increase in churn rate for ride-hailing service in past quarter Impact on approach: Higher churn might prioritize improving core offerings

• Technical: Thinking about our current tech stack, how easily can it accommodate new service categories without major overhauls?

Why it matters: Assesses feasibility and resource requirements for expansion Expected answer: Current infrastructure is modular but would require some adaptation for certain new categories Impact on approach: High adaptability might favor expansion, while significant changes needed could delay new categories

• Resources: Considering our current team structure, do we have dedicated resources for new category development, or would this require reallocating teams from core offerings?

Why it matters: Determines capacity for simultaneous improvement and expansion Expected answer: Limited dedicated resources for new categories, would require some reallocation Impact on approach: Limited resources might necessitate a more focused strategy