1. BACKGROUND Mhlathuze Water (MW) is a public sector water utility created in terms of Water Act 54 of 1954, MW has legislative mandate to provide support services to DWAF and other government institutions such as municipalities and Catchment Management Agencies (CMAs). The objective of the CMA is to manage and coordinate water resources management functions at local level. This includes the power to manage, monitor, conserve and protect water resources and to implement catchment management strategies (NWA, 1998). Because of shortage of water resources specialist skills such as water resources monitoring, water resources assessment, flood prevention, and resource protection to mention few, the Usuthu-Mhlathuze CMA will have to outsource some of the specialist functions to private and public institutions like Mhlathuze Water on a competitive basis (DWAF, 2003). 2. PURPOSE The primary purpose of the dissertation is to analyze and understand the needs of the Usuthu-Mhlathuze CMA as well as MW's competencies so as to develop positioning strategy for MW. To achieve the primary purpose of the dissertation the following research objectives have been identified: • Identification of the needs of the target CMA. • Identification ofMW's strengths and weaknesses to see ifMW can satisfy the needs of the target CMA. • Analysis of competitors' strengths and weaknesses to measure MW against competitors. The three analyses will provide a base essential for developing and recommending a positioning strategy to MW. 3. METHODOLOGY The customer needs analysis information of the Usuthu-Mhlathuze CMA was mainly sourced from the following documents: • Usuthu-Mhlathuze Situation assessment (Appendix 1). • Proposal to establish the Usuthu-Mhlathuze CMA (Appendix 2). • Legal review on CMAs (Appendix 3). • Australian documentation on catchment management institutions (Appendix 4). For the competitor analysis, a profile of most organizations m the water sector operating in the area of the CMA was sourced from MW's consultants panel for various disciplines (Appendix 5). The internal analysis was compiled using information from reports produced by MW in the last five years and was also informed MW's participation in various studies and projects in the catchment management area (Appendix 6). Strategic employees from various MW's departments were contacted with the view of authenticating the analysis findings. 4. FINDINGS AND CONCLUSION A number of areas of need for the imminent Usuthu to Mhlathuze CMA were identified. These included water quality management, flood management, construction and operation of waterworks, monitoring the performance of water users, monitoring the condition of water resources, alien vegetation management, education on water resource management, promotion of community participation, ensuring access to information regarding water resource management, development of a Catchment Management Strategy, provision of water to meet environmental needs, ensuring sustainable water sharing and efficient water use, and pursuing opportunities for productive use of alternative the water source. The competitor analysis (Appendix 7) provided the strengths and weaknesses of competitors likely to target the CMA as service providers. The likely major competitors of MW are: Scott Wilson, BKS, Jeffares and Green Consulting Engineers, Water Resource Planning and Conservation Consulting Engineers and Ninham Shand Consulting Engineers. Scott Wilson and DMM partnership have major strengths that MW would need to be aware of in developing a positioning strategy. The other competitors do not offer a suite of water resource management service. They are therefore not expected to be MW's major rivalries. 5. RECCOMENDATIONS MW should position itself as the low cost service provider because the imminent CMA will be very price sensitive. Apart from positioning itself as a low cost provider, MW should also position itself as a deliver good quality services. MW's strengths in terms of experience, expertise, knowledge and understating of the water resource dynamics demonstrate that MW can safely position itself as a deliver good quality services. MW is the only water resources management services provider that provides a suite of water resources management functions (Table 5.1, p. 49). The organization is also the only service provider that acts as an implementing agent that already provides water resource management services for DWAF (de facto CMA). Based on this, and the fact that MW is well known (DWAF, 2003), it is appropriate for MW to also position itself as leader in water resources management in the CMA area of operation (Thompson and Strickland, 2003). The most appropriate promotional tool that will solicit immediate response and cultivate lasting customer relationship for MW is direct marketing (Kotler, 2000). This means that MW must package their service offerings and go and sell them directly to the de fact CMA and later to the CMA. The benefits of using this tool is that the message will be specifically directed to the prospect specifically prepared to appeal to CMA and can be immediately changed depending on the response (Kotler, 2000). / Thesis (M.B.A.)-University of KwaZulu-Natal, Pietermaritzburg, 2004.

Umgeni Water was established through Government Notice No. 114 on 14 June 1974. The establishment was facilitated via the legislation operating at that time, namely the Water Act (Act No. 54 of 1956). The organization has grown to be the largest water utility in KwaZulu-Natal and the second largest in South Africa operating in an area of 27 000 square kilometres. Umgeni Water has now expanded its capabilities to cover the full water management cycle and has geared itself up to offer source to sea and source to tap solutions. All the water utilities in South Africa were operating as monopolies because the Water Act (Act No. 54 of 1956) used a system of assigning areas within which the water utilities were to operate. This means that firstly the water utilities were confined to a specific area, and by default meant that these water utilities had a monopoly in that area because the legislation did not permit other service providers. The situation changed in the late nineties when the water sector underwent major legislative and administrative transformation. A number of laws were promulgated including the New National Water Act (Act No. 36 of 1998), the Water Services Act (Act No. 107 of 1997) and a plethora of municipal legislation. The major difference in the "new era" was the introduction and promotion of competition as a means to improve service delivery and enhance benefits accrued by the customers. For the first time in the history of the water sector, water utilities had to compete with other service providers and prove that they can discharge duties and activities better and more efficiently than anybody else. The municipal legislation also empowered and mandated municipalities to be the official authority and provider of water services to the people within their areas of jurisdiction, hence the term Water Services Authorities. If the Water Services Authority lacked capacity, it could choose a service provider that would meet the need. Against this backdrop, water utilities have had to find ways of generating income to survive and this meant that the water utilities had to somehow become relevant in the new dispensation. This included strategies like customer management, increasing operational efficiencies, building capacity of staff through training and development programmes and commercialisation of certain activities. In other words, the water utilities realised that they had to do something, one such thing that was done by Umgeni Water was to position itself so that it becomes a service provider of choice to the Water Services Authorities. In its effort to sustain itself, Umgeni Water cast its eyes beyond the promulgated operational area to the whole of the developing world. In its strategic session that set the tone for 2001 to 2005, the organization envisioned itself being the No.l utility in the developing world. Before being No.l utility in the developing world, Umgeni Water needed to achieve that status in its operational area and South Africa. To be able achieve this position, Umgeni Water needed to know the perceptions being held by the customers in its operational area. This research was undertaken to establish the position that Umgeni Water currently holds in the minds of the customers. This information will assist and inform the future position that Umgeni Water will need to adopt to ensure that its vision is attained. The sample consisted of all Water Services Authorities within the promulgated operational area of Umgeni Water, namely Ugu District Municipality, Sisonke District Municipality, uMgungundlovu District Municipality, Ilembe District Municipality, uMsunduzi Municipality and eThekwini Municipality. The Water Services Authorities seem to be in agreement and appreciative of the fact that Umgeni Water's service provision has improved over the years and 91% of the customers asserted that the main product of the organization, water, met their requirements. This improvement influenced an overwhelming majority (73%) of the Water Services Authorities to proclaim that Umgeni Water was their preferred service provider. These perceptions were fuelled by a number of reasons including the fact that the Water Services Authorities believed that Umgeni Water has the necessary experience, expertise, capabilities and track record to speak authoritatively on integrated water resource management. The Water Services Authorities also believed that the organization is contributing constructively towards the realisation of their developmental mandate and attainment of the water and sanitation goals set by the South African Government through The Strategic Framework for Water Services and achievement of targets set during the World Summit on Sustainable Development in Johannesburg. The Water Services Authorities also identified Umgeni Water's strengths to lie in the fields of water quality management, water quality monitoring, water treatment and laboratory services. This information is crucial because it validates Umgeni Water's position and vindicates the establishment of the organization by the government, whose primary activity was to provide sustainable and high quality water services. There were however customers who felt that Umgeni Water is arrogant, supercilious and untrustworthy. These strong statements were informed by the business dealings spanning a period of 17 years. The only reason that makes these Water Services Authorities continue to use Umgeni Water even under these circumstances is because of the geographical location of the company and its strong financial muscle. The final conclusion drawn is that Umgeni Water is well positioned in the minds of the customers, and is supplying vital services that are perceived by the Water Services Authorities to be adding value to the businesses that they are involved in. In order for Umgeni Water's position to be sustained and cemented in the minds of the customers, immediate attention should paid to critical issues such as ensuring that the intended position of being the service provider of choice is both meaningful and believable by all customers. Umgeni Water should align its value systems, core beliefs and cultures with those of the Water Services Authorities to enhance the possibilities of building long-term relationships. The organisation should also ensure that its Communication Strategy communicates the intended position as well steps to be undertaken to reach that position. It is also important that customers input into this strategy. Umgeni Water should also gather more information on the customers' businesses to enable them to increase the value adding activities and thus leverage value for customers. Another important recommendation is for Umgeni Water to revisit its pricing strategy because of the perception that the products and services are highly priced. The organization will need to conduct a benchmarking exercise to compare its prices against both the water utilities and the water sector. It has also been recommended that Umgeni Water reposition the professional services offered by the organization. This is because of a revelation by 18% (figure 10) of Water Services Authorities felt that the professional services offered by Umgeni Water do not meet their requirements. To improve this position, Umgeni Water should emphasize non-payment of its services provided unless they meet the required standard. The organization should also identify, amplify and communicate the benefits accrued through the professional services to these Water Services Authorities. Once the Water Services Authorities have realized the immense benefits that are accrued through these services and the insistence of honoring payments only after the quality of the final work produced has been acceptable, chances are greater for repeat business and this will ultimately lead in Umgeni Water being recognized as the preferred provider of services. / Thesis (M.B.A.)-University of KwaZulu-Natal, Pietermaritzburg, 2004.

The post apartheid government has been engaged in the process of delivering formal housing, water, and sanitation services to the poor. Because of huge backlogs in the provision of these basic services, the government has focused on meeting quantitative targets. The government has made significant strides to reduce the level of backlogs in basic service the delivery. However, there were challenges that confronted government in its endeavours to expedite delivery of services. The main challenge relates to the fragmentation in the funding mechanism for housing and the physical infrastructure, particularly water and sanitation infrastructure. Concerns have been raised about the ability of the local sphere of government to provide suitable land and quality physical infrastructure which were a prerequisite for sustainable settlements. The aim of the study was to evaluate the implementation of water and sanitation policies in a low-cost housing (LCH) settlement of Ambleton and Ambleton Extension in Pietermaritzburg. In line with the set objectives, the study attempted to find out if the implementation of water and sanitation policies in the area was consistent with the national policies and to establish whether or not people that lived in the area felt the quality of services has improved their lives. A qualitative methodology was used to collect data. In this regard three methods of collecting data were used, namely, semi-structured questionnaire, interviews and observation. The findings of the study showed that there were challenges with water and sanitation services. Some of the challenges relate to the inconsistent and fragmented nature of the funding mechanism that is inherent in basic service delivery policies. Residents of Ambleton and Ambleton Extension were generally unhappy about the quality of water and sanitation services. The study recommends that the government should revise its funding mechanism to strengthen the ability of municipalities to provide quality services. / Thesis (M.Sc.)-University of KwaZulu-Natal, Pietermaritzburg, 2010.