Thesis (MScAgric)--Stellenbosch University, 2014. / ENGLISH ABSTRACT: The South African apple industry is influenced by a number of factors, including increased globalisation of markets, trade liberalisation, advances in information technology and consumer preferences. These factors have a continuous effect on the competitiveness of the industry and force producers and processors to position themselves as capable competitors in the global free-market environment. This study measures and analyse the competitiveness of the South African apple industry, including some aspects in the value chain, in an attempt to address the following research question: What is the global competitive advantage of the South African apple industry relative to its competitors. To adequately address this research question, a five-step methodology was used to direct the study: The first step was to define competitiveness in the apple industry. Due to the diversity of definitions of competitiveness as a concept, this study adopted the following working definition based on how Esterhuizen, 2006; Freebairn, 1986 define competitiveness. In their view competitiveness is defined as the ability of an industry (apple industry) to trade its products successfully in order to achieve sustainable business growth within the global environment, while earning at least the opportunity cost of returns on resources employed” This definition is accepted in this study because it is noted that competitiveness is most often associated with trade performance. With the above in mind, and in view of the importance of open global apple trade, competitive performance in the South African apple industry is strongly linked to trade performance. The second step was to measure competitive performance based on the accepted definition. Data from the Food and Agricultural Organisation of the United Nations and Trade Map was used to examine the competitiveness of the industry. Three internationally recognised indexes were used to calculate the comparative and competitive advantages of the apple industry in South Africa, namely the Revealed Comparative Advantage (RCA#) index, the Net Export index (NXi), and the Relative Revealed Comparative Trade Advantage (RTA) index. The results show that South Africa’s apple industry has sustained a competitive advantage, with most of the recent RCA# and RTA index values moving towards 10. When compared with its competitors, Chile and New Zealand show a strong competitive performance, with RTA index values above 10. However, South Africa has a relatively better global competitive advantage over Italy, Argentina, France, Poland, China and the United States of America and are sustaining a third position on the “international apple podium”. Netherlands and Brazil are internationally uncompetitive in the production of apples In step 3 the Apple Executive Survey (AES) was used to identify the factors that constrain and enhance the competitiveness of the South Africa apple industry so that the industry can improve on those factors that constrain competitiveness in order to improve its competitive performance status. The most important factors that were found to have a negative impact on the competitiveness of the South African apple industry were quality of low-skilled labour, cost of crime, availability of skilled labour, SA labour policy, the cost of infrastructure, trust in the political system, administrative regulations, health-related issues (HIV/Aids), the cost of capital and land reform policy. The findings indicate that much needs to be done in these focus areas to boost the competitiveness of the industry in the international market. Factors that enhance the competitiveness of the industry were growth in the international market, the availability of unskilled labour, the availability of transport, competition in the domestic market, industry expenditure on research and development (R&D), the quality of infrastructure, the availability of storage facilities and South African (SA) competition policy. The industry needs to capitalise on these factors in order to improve its competitiveness. In step 4 the Porter Model was then used to group these factors in to the main determinants for competitiveness to prepare the date for an strategic analyses in step 5 where recommendation were made on actions to enhance and rectify or mitigate some of the challenges that are faced by the apple industry in South Africa – these includes: skills training, development of alternative markets, improved cooperation between the apple industry and the government is necessary in supporting the apple industry through infrastructure development, R&D, globally aligned regulations and support to trade promotion. / AFRIKAANSE OPSOMMING: Die Suid-Afrikaanse appelbedryf word deur ’n verskeidenheid van faktore beïnvloed, waaronder verhoogde globalisering van markte, liberalisering van handel, vooruitgang in inligtingstegnologie en verbruikersvoorkeure. Hierdie faktore het ’n deurlopende effek op die mededingendheid van die bedryf en dwing produsente en prosesseerders om hulleself as bekwame mededingers in die globale vryemarkomgewing te posisioneer. Hierdie studie meet en analiseer die mededingendheid van die Suid-Afrikaanse appelbedryf, insluitende aspekte van die waardeketting, in ’n poging om die volgende navorsingsvraag aan te spreek: Wat is die globale mededingende voordeel van die Suid-Afrikaanse appelbedryf teenoor dié van sy mededingers? Om hierdie navorsingsvraag behoorlik aan te spreek, is ’n vyfstap-metodologie gebruik om hierdie studie te rig: Die eerste stap was om mededingendheid van die appelbedryf te definieer. As gevolg van die verskeidenheid van definisies van mededingendheid as ’n konsep, het hierdie studie die volgende bruikbare definisie aangeneem, wat gebaseer is op hoe Esterhuizen (2006) en Freebairn (1986) mededingendheid definieer. Hulle siening is dat mededingendheid die vermoë van ’n bedryf (die appelbedryf) is om suksesvol met sy produkte handel te dryf om sodoende onderhoubare besigheidsgroei binne die globale omgewing te behaal, terwyl dit ook ten minste die geleentheidskoste verdien van die opbrengs op hulpbronne gebruik. Hierdie definisie word in die studie aanvaar om beslag te gee aan die uitvoergeneigdheid van die appelbedryf en dat dit opgelet is dat mededingendheid in die bedryf sterk verband hou met handelsprestasie. Die tweede stap was om die mededingende prestasie op grond van die aanvaarde definisie te meet. Data vanaf die Verenigde Nasies se Food and Agricultural Organization( vanaf 1961) en Trade Map ( vanaf 2001) is gebruik om die mededingendheid van die bedryf te ondersoek. Drie internasionaal erkende indekse is gebruik om die vergelykende en mededingende voordele van die appelbedryf in Suid-Afrika te meet, naamlik die Revealed Comparative Advantage (RCA#) indeks, die Netto Uitvoer-indeks (Net Export index (NXi)), en die Relative Revealed Comparative Trade Advantage (RTA) indeks. Die resultate toon dat Suid-Afrika se appelbedryf deurlopend ’n posetiewe mededingende voordeel het, met die meeste van die RCA#- en RTA-indekswaardes oor die afgelope dekade stygend na net onder die waarde van 10. In vergelyking met die land se mededingers toon Chili en Nieu-Seeland sterker mededingende prestasie, met RTA-indekswaardes bokant 10. Suid-Afrika het egter ’n relatief beter globale mededingende voordeel oor sy belangrikste mededingers, naamlik Italië, Argentinië, Frankryk, Pole, China en die Verenigde State van Amerika en beklee n konstante derde plek op die “internasionale appel poduim”. Nederland en Brasilië is internasionaal onmededingend in appelproduksie. In stap drie is die Apple Executive Survey (AES) gebruik om die faktore te identifiseer wat die mededingendheid van die Suid-Afrikaanse appelbedryf strem of verhoog. Die belangrikste faktore wat gevind is om ’n negatiewe impak op die mededingendheid van die Suid-Afrikaanse appelbedryf te hê, was die kwaliteit van laag geskoolde arbeid, die koste van misdaad, die beskikbaarheid van geskoolde arbeid, SA arbeidswetgewing, infrastruktuurkoste, lae vertroue in die politieke stelsel, komplekse en tydrowende administratiewe regulasies, gesondheidsverwante kwessies (MIV/Vigs), die koste van kapitaal en sake wat verband hou met die grondhervormingsbeleid. Die bevindinge toon dat veel nog in hierdie fokusgebiede gedoen moet word om die mededingendheid van die bedryf in die internasionale mark te verhoog. Faktore wat die mededingendheid van die bedryf verhoog, was groei in die internasionale mark, die beskikbaarheid van ongeskoolde arbeid, die beskikbaarheid van vervoer, mededingendheid in die binnelandse mark, besteding op navorsing en ontwikkeling, die kwaliteit van infrastruktuur, die beskikbaarheid van opbergfasiliteite en Suid-Afrikaanse (SA) mededingingsbeleid. Die bedryf moet op hierdie faktore kapitaliseer om sy mededingendheid te verbeter. In stap vier is die Porter-model gebruik om hierdie faktore in die vernaamste determinante vir mededingendheid te groepeer om die raamwerk te stel vir ’n strategiese analise in stap 5, waar aanbevelings gemaak is oor optredes om sommige van die uitdagings wat die appelbedryf in Suid-Afrika in die gesig staar aan te pas, te verbeter en reg te stel. Hierdie sluit in verbeterde vaardigheidsopleiding veral in die laag geskoolde groepe, ontwikkeling van alternatiewe markte, en verbeterde samewerking tussen die appelbedryf en die regering, wat nodig is om vertroue te skep en die appelbedryf d.m.v. infrastruktuurontwikkeling, navorsing en ontwikkeling, globaal belynde regulasies en handelsbevording te ondersteun.

Thesis (MScAgric)--Stellenbosch University, 2000. / ENGLISH ABSTRACT: The deregulation and the following restructuring of the South African fruit industry in 1996 had a significant influence on the decision-making environment that participants in the industry were used to. As new exporters entered the industry many new market opportunities arose. However at this same period in time export-earnings from the most important traditional markets came under pressure. A drastic increase in the supply of fresh apples from other Southern Hemisphere countries like Chile as well as a highly fragmented South African marketing structure are believed to be the most important reasons for the decline in exportearnings. The aim of this study is to focus on the international competitiveness of the South African apple industry in comparison to the competitiveness of the Chilean industry, with specific reference to the competition between the two countries on the European market for fresh apples. The study is introduced by a historical view as well as a glance at recent realities within the South African as well as the Chilean apple industry. Aspects that have lead to the growth and development regarding production as well as exports within both industries will be indicated. Historical international trade performance of both industries is discussed as international trade performance is a prerequisite for international competitiveness. Theoretical principles of competitiveness and competitive advantage is given with specific focus on the most recent theoretical viewpoints concerning competitive advantage and the reaching thereof The work of Michael Porter (1990) is used as a starting point in order to construct a framework with which the national competitive advantage of a specific industry, with a specific nation, can be explained. According to Porter ( 1990) national competitive advantage can be defined as the specific characteristics of a nation's national circumstances that enables a specific industry within that nation to create and maintain competitive advantages. National competitive advantage a measured according to four so-called broad determinants of national competitive advantage, namely industry structure, strategy and competition (first determinant), factor conditions, related and supporting industries and demand conditions as the forth determinant. A number of more recent definitions and describing literature on competitive advantage is used in order to expand Porter's so-called "diamond-analyses" for specific use to analyze an industry that produces a perishable product. An important prerequisite concerning the analyzing of competitiveness, is the presence of a relative or comparative component. Industry specific technical literature is used in order to make comparative descriptions within the above mentioned framework. This framework (expanded Porter-model) is used in order to compare the Chilean apple industry with the South African industry on the basis ofthe four broad determinants of national competitive advantage. In this way a complex description of the varied national and international industry environments within which the two industries operate, is done. It is very clear that international exposure on production as well as on marketing level together with excellent natural resources is the most important contributors to the national competitive advantage of the Chilean apple industry. The exceptional natural resources and very good weather conditions for growing apples together with growers' exposure to consumer demands are important contributors to the production of high quality fruit. Marketers and exporters show valuable market-discipline and they have easy access to relevant market information. These aspects strengthen the competitiveness of the Chilean apple industry. If the South African apple industry want to be competitive in future, it is absolutely essential that scarce resources such as soil and water is well-managed and conserved. International exposure and technological innovation on production level is also very important. Market information will have to be more easily accessible and exporters will have to show significant market discipline. It is also important that there will not be any uncertainties as far as property rights is concerned, as this will scare investors. It is of utmost importance that the South African government will work towards creating a home base that will have a positive effect on the obtaining and the maintaining of national competitive advantage. This study give participants within the South African apple industry a thorough description of the varied decision-making environments to which the Chilean and the South African apple producer is subjected to. Differences within this decision-making environments is emphasized and there is an indication of what the direct influence of this differences have on the South African industry. Possible future changes concerning the various macroenvironments of the two industries is analyzed and an indication is given on how these changes will influence the obtaining and maintaining of national competitive advantage in future. / AFRIKAANSE OPSOMMING: Die deregulering en die gevolglike herstrukturering van die Suid-Afrikaanse vrugtebedryf in 1996 het die besluitnemingsomgewing vir alle deelhouers binne die Suid-Afrikaanse vrugtebedryf drasties verander. Die toetrede van verskeie nuwe uitvoerders het beteken dat nuwe bemarkings-geleenthede benut kon word, maar ongelukkig het uitvoerverdienste op die tradisioneel belangrike markte op dieselfde tydstip onder groot druk gekom. 'n Dramatiese toename in die voorsiening van vars appels vanuit ander Suidelike-Halfrond-lande, soos Chili, tesame met 'n gefragmenteerde Suid-Afrikaanse bemarkings-opset word as die belangrikste redes vir die dating in uitvoerverdienste aangevoer. In hierdie ondersoek word daar gefokus op die internasionale mededingendheid van die Suid-Afrikaanse appelbedryf relatief tot die mededingendheid van die Chileense bedryf, met spesifieke verwysing na die mededinging tussen die twee lande in die Europese mark vir vars appels. Die studie word ingelei deur 'n geskiedkundige oorsig sowel as 'n blik op huidige realiteite binne die Suid-Afrikaanse- sowel as die Chileense appelbedrywe. Die verloop van gebeure wat tot die groei en ontwikkeling ten opsigte van produksie sowel as uitvoere binne beide bedrywe gelei het, word aangedui. Die bereiking van intemasionale handelsukses word as voorvereiste vir intemasionale mededingendheid aangevoer. Geskiedkundige intemasionale handelsprestasie van beide bedrywe word dus ook uiteengesit. 'n Uiteensetting van teoretiese grondbeginsels van mededingendheid en mededingende voordele word aangebied met die fokus op die jongste teoretiese sienings betreffende mededingende voordeel en die bereiking daarvan. Die werk van Micheal Porter (1990) word as vertrekpunt gebruik ten einde 'n raamwerk te konstrueer waarmee die nasionale mededingende voordeel van 'n bepaalde bedryf, gesetel binne 'n bepaalde nasie, omskryf kan word. Volgens Porter (1990) word nasionale mededingende voordeel omskryf as die bepaalde karaktertrekke van 'n nasie se nasionale omstandighede wat spesifieke bedrywe binne daardie nasie in staat stel om mededingende voordele te skep en te behou. Nasionale mededingende voordeel word gemeet aan die hand van vier sogenaamde bree determinante van nasionale mededingende voordeel, naamlik bedryfstruktuur, bedryfstrategie en bedryfskompetisie (wat gesamentlik die eerste determinant vorm), faktorkondisies, verwante en ondersteunende industriee asook vraagtoestande. Hierdie vier determinante omskryf die totale omgewing (home base) waarbinne 'n bepaalde bedryf opereer. Verskeie meer onlangse definisies en beskrywende literatuur betreffende mededingende voordeel is aangewend om Porter (1990) se sogenaamde "diamant-analise" uit te brei en meer toepaslik te maak op 'n bedryf wat 'n bederfbare kommoditeit produseer. 'n Belangrike voorvereiste betreffende die analisering van mededingendheid, is die teenwoordigheid van 'n relatiewe of vergelykende komponent. Bedryfspesifieke tegniese literatuur is dus verder aangewend ten einde vergelykende beskrywings binne die genoemde raamwerk te doen. Die raamwerk (uitgebreide Portermodel) is gebruik ten einde die Chileense appelbedryf met die Suid-Mrikaanse appelbedryf te vergelyk aan die hand van elk van die genoemde determinante van nasionale mededingende voordeel. Op hierdie wyse is 'n komplekse beskrywing van die onderskeie nasionale en internasionale bedryfsomgewings (home bases) waarbinne die twee bedrywe opereer, verkry. Omvattende internasionale blootstelling op produksie- maar veral op bemarkingsvlak tesame met uiters gunstige klimatologiese toestande en baie goeie natuurlike hulpbronne, blyk die belangrikste aspekte te wees wat hydra tot nasionale mededingende voordeel van die Chileense appelbedryf. Die gunstige klimatologiese toestande en die kwaliteit van die natuurlike hulpbronne tesame met die feit dat produsente die verbruikersbehoeftes van die verskillende wereldmarkte ken, dra by tot die produksie van goeie kwaliteit vrugte. Die vaardigheid en hoe vlak van intemasionale blootstelling waaroor bemarkers/uitvoerders beskik, tesame met die toepassing van markdissipline, is verdere aspekte wat die mededingendheid van die Chileense bedryf versterk. Indien die Suid-Afrikaanse appelbedryf in die toekoms steeds mededingend wil wees en nuwe nasionale mededingende voordeel wil skep en handhaaf, is dit van kardinale belang dat beskikbare, skaars hulpbronne soos water en grond oordeelkundig bestuur en aangewend moet word. Intemasionale blootstelling en tegnologiese innovasie met betrekking tot produksie is van kardinale belang. Dit is verder belangrik dat mark-inligting meer toeganklik sal word en dat uitvoerders die nodige markdissipline sal toepas en handhaaf. Dit is belangrik dat onsekerheid betreffende eiendomsreg vermy sal word omdat dit kan lei tot beleggerswantroue. Dit is van kardinale belang dat die Suid-Afrikaanse regering sal streef daarna om 'n home base te skep wat positiefbydra tot die bereiking en handhawing van nasionale mededingende voordeel. Die studie bied dus aan deelhouers binne die Suid-Amerikaanse appelbedryf 'n omvattende beskrywing van die onderskeie besluitnemingsomgewings waaraan die Chileense sowel as die Suid-Mrikaanse appelprodusent blootgestel ts. Verskille binne hierdie besluitnemingsomgewings word uitgelig en daar word aangetoon wat die direkte invloed van hierdie verskille op die mededingendheid van die Suid-Mrikaanse bedryf mag wees. Moontlike toekomstige veranderinge betreffende die onderskeie makro-omgewings van die twee bedrywe word ondersoek en daar word aangedui hoe hierdie veranderinge die bereiking en handhawing van nasionale mededingende voordeel in die toekoms sal belnvloed.

Thesis (MBA (Business Management))--Stellenbosch University, 2008. / The goal of the study was to identify the ideal positioning strategy for the South African Apple and Pear industry to successfully compete as a supplier against Chile in the European retail environment. The hypothesis of the study states that the ideal positioning strategy for South Africa is a combination between a Corporate and a Generic strategy. The Corporate strategy would focus on what wants to be achieved while the Generic strategy would focus on how it needs to be achieved. A strategy framework combining available corporate strategies with available Generic strategies identified 12 potential corporate/generic strategy combinations. The outcome of the study would be the selection of the combination most suited to take the South African Apple and Pear industry into the future. The research in this study included a full description of both the South African and Chilean industries discussing the physical, economic and political environment as well as the available human resources and industry structures. A thorough description of the European retail environment was followed by an external analysis identifying the key success factors required to successfully supply this market. The key success factors were used as the framework to do an internal situational analysis of the South African and Chilean industries. The internal situational analysis identified the key areas that South Africa needs to focus on to improve its competitive position against Chile in the European retail market. These key areas were pivotal in the selection of the optimal corporate / generic strategy combination. The outcome of the study identified a Market penetration strategy (Corporate strategy) through the use of a Differentiation (Generic strategy) as most suited to improve the competitiveness of the South African Apple and Pear industry. This strategy will grow demand and market share for South African apples and pears in the existing EU retail market for its existing product range by focusing on: 1. Improving the retail value and sales volume of SA apples and pears in the European retail market through:  In-store promotional and media campaigns that will create awareness of South African apples and pears and SA Tourism as well as educate and communicate consumers about the attributes and different uses of SA apples and pears as well as SA Tourism opportunities.  The identification of all South African apples and pears through on-pack branding by using the “South Africa, Alive with Possibility brand”. In-pack information booklets providing nutritional information and recipes for South African apples and pears. 2. Communication of real time supply information to European retailers and importers through:  E-mailing retail buyers direct website links giving them access to the weekly South African Pome Fruit newsletters indicating crop estimates, weekly inspection volumes and shipment volumes per variety. 3. Active engagements with the SA government to gain their involvement and financial support for promotional activities in retail stores through:  Active lobbying by industry representatives for the involvement of SA Tourism, the Department of Trade and Industry and the International Marketing Council in promotional campaigns where SA Apples and Pears are used as a vehicle to enhance the image of the South Africa amongst consumers, retailers and importers. 4. The active communication at an industry level to European retailers and importers about the South African Apple and Pear industry’s progress regarding the management of the carbon footprint of its products as well as the production of residue free fruit through.  Yearly visits by industry representatives to European retailers and importers where South African progress reports in these areas are presented. The assessment highlighted that South Africa is relatively strong throughout the value chain activities but that the lack of a unified industry whereby its strengths are communicated to consumers, retailers and importers, has led to South Africa loosing market share to Chile.