Case Study Springbok
GRIN Verlag, 2007 - 36 pages
Seminar paper from the year 2006 in the subject Business economics - Business Management, Corporate Governance, grade: 28/35, University of Queensland, course: Strategic Management, 1 entries in the bibliography, language: English, abstract: Springbok Group is a South African based grocery retailer looking to invest in the Australian grocery industry. The organization has invested in the Australian market through the acquisition of the floundering retailer, Clinton's. Clinton's have been forced to sell their Australian market share due to non-profitability and impending bankruptcy, a result of the incompatibility of the company's existing strategy and the Australian market. Springbok Group believes that there is potential in the Australian market, as groceries represent 10% of the total GDP (AU$158.4 billion of the Australian economy). In order to tap into this market careful planning of the firm's strategy must be carried out. Strategy is exclusively concerned with specific competitive advantage, and for Springbok to avoid the mistakes of their predecessors they will need to implement a strategy allowing more efficient operation in the environment and define unique competencies. The following is a strategy designed to ensure a sustainable position for Springbok's in the Australian grocery market.
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Accessibility attract new entrants Australian grocery market Australian Retail buyers Cash Cows chain stores changes Clinton’s close to home competitive advantage Constant evaluation consumer trends cost advantages cost structures costs are low Diamond and Lawson economies of scale efficient ensure existing strategy extended internal focus external environment Figure focused fresh food fresh products Gantt Chart Gap analysis grocery retailing growth rate high competition implemented inefficiencies with internal internal processes internal strategy key potential strategic Key Strategy leaders limited Low cost products Low price market share marketing actions matrix narrow target market non-food opening parking PEST analysis pre-selection Public Promotion recommended Refer to Appendix resources and capabilities shoppers short-term actions small grocers South African Springbok concentrates Springbok Group Springbok must concentrate Springboks strategy staff Store management Strategic Tree strategy direction substitute products Supermarket Sales supply chain management threat of substitutes Vertical integration VRIE Yes Yes Yes