1. Is the South African retail banking industry currently attractive? An analysis of the nature of
competition as well as an assessment of the industry’s profit potential need to be conducted
in order to justify an answer.
2. If a low-cost banker such as Capitec were to expand its product and service offerings to a
more sophisticated customer base and decided to enter the market arena of the four major
banks in South Africa:
2.1. How will its current strategy compare? Will it be a winning strategy? (10 marks)
2.2. What would the retaliatory or next likely strategic moves by the four major players in the
retail banking industry be? (10 marks)
3. What additional or alternate strategic choices could Capitec explore? If a decision is taken to
pursue such a strategy, what recommendations can be made to ensure successful
implementation? Please justify your answers. (10 marks)
4. What competitive assets would Capitec need in order to improve its future rating by Brand
Africa? If a decision is taken to develop such resources and capabilities how could Capitec
develop these? (20 marks)
5. Your answers to the above questions should be presented in a formal report to
management. Marks will be awarded for the executive summary and quality of reporting as
detailed below.