The South African food and clothing retail industry is highly sophisticated and dominated by a few large competitors. The market is unique and has been shaped by abnormal political influences that have created a polarised society. The market holds a high potential owing to the burgeoning young middle class that is also attracting global attention. This necessitates an increase in economies of scale through expansion and acquisition strategies. Woolworths Holdings Limited has experienced significant growth in tough trading conditions whilst many competitors have lost ground. The Woolworths’ brand is primarily aimed at the high-income groupings but also appeals to the burgeoning middle class with their private-label products. The clothing and food divisions also provide a unique appeal that concentrates on the strong brand name to cater to the polarised nature of the market. The Woolworths Holding Limited (WHL) business model aims to offer superior quality at a lower cost than competitors which competitors find difficult to imitate. The apparent paradox is solved through tightly-knit supplier relationships and a culture demanding continuous improvement. The company is uniquely positioned to service the Living Standards Measure (LSM) 8-10 niche market whilst improving efficiencies. The company drives its competitive advantage over competitors through the key competencies of a reputable brand name, a strong sustainability programme, a strong operation and supply chain network, all of which are crucially-supported by superior and innovative technology utilisation. The study analysed the strategic brand positioning with a focus on the introduction of the supermarket concept. The study indicated that the supermarket concept was a reaction from WHL to consumer’s requirements for a one-stop shop aimed at increasing existing customers’ basket spend and drawing similar new clients. An increase in spend is potentially lucrative to WHL, and the strategy is a viable option as long as the company remains focussed on the core principles of the business model.
| Identifer | oai:union.ndltd.org:netd.ac.za/oai:union.ndltd.org:nmmu/vital:24286 |
| Date | January 2014 |
| Creators | Kuhn, Ralph Ulrich |
| Publisher | Nelson Mandela Metropolitan University, Faculty of Business and Economic Sciences |
| Source Sets | South African National ETD Portal |
| Language | English |
| Detected Language | English |
| Type | Thesis, Masters, MBA |
| Format | xi, 135 leaves, pdf |
| Rights | Nelson Mandela Metropolitan University |
Page generated in 0.002 seconds