QUESTION 1 BUSINESS NOTE Pictures attached to assist with answering the question Case study attached in order to answer the question Takelot com and Superbalist com Takealot com has built its business on the simple principle that their customers come first Their business is retail, and they strive to have the widest range of products and the best possible customer service on the African continent Takealot com is doing it by employing great people and developing innovative, cutting edge tech They are all about their customers They want to be the most customer centric online shopping destination in Africa to make online shopping so easy and seamless that everyone will feel comfortable doing it Takealot com wants to know their customers and be a part of their lives They want each experience the customers have with them to leave them with a smile, whether its a confirmation email, an added detail on the packaging or even the return of an unwanted or damaged order According to Takealot com Sure, were only human and we make mistakes, but when we do, we confront them honestly, openly and immediately, doing everything we can to make things right For takealot com, 2014 was a truly pivotal year with the announcement of a $100m investment from Tiger Global This was quickly followed by the purchase of Mr Delivery which gave the business ownership over its own logistics network through the Takealot Delivery Team division (formerly Mr D Courier) and its own app based on demand food delivery service through the MR D division (formerly Mr D Food) The same year saw the successful acquisition of Superbalist com, a curated design and fashion website, and culminated in the announcement that Naspers owned Kalahari com would be merging businesses with takealot com building the premier online shopping destination in Africa The merge was successfully completed on 1 May 2015 when all Kalahari customer accounts were successfully transferred to Takealot com In April 2022, Superbalist bought G Ways CMT Manufacturing Proprietary Limited, a small clothing and textile manufacturing business which adds scale to its private label business Mr D, the Takealot groups delivery business, increased orders and GMV 9 and 13 , respectively, maintaining its strong position in South Africas main cities Mr D announced its Pick n Pay grocery partnership in May 2022 and made trial deliveries in August Superbalist com is South Africas most loved online wardrobe lifestyle destination Were all about accessible style that inspires self expression and confidence Superbalist com teams and their ways of working Small, cross functional teams Complete ownership of focus areas Collaboration with product, data science and UX Set goals and develop the most effective solutions to each of them Cross team guilds focus on excellence in specific areas Teams are driven by and measured on results not work volume Superbalist com perks Flexible working hours Work from home anywhere in SA Working with top talent Personal career development plans Staff discounts QUESTION 1 Evaluate the use of the differentiation strategy Takealot com is employing as illustrated in the case study provided below will assist you with the answer ADVANTAGES OF THE DIFFERENTIATION STARTEGY The organisation can safeguard against competitors by establishing customer loyalty towards its products Powerful suppliers aren't a problem because the organisation charges a price it can, rather than focussing on costs of production Increases in prices are tolerated by customers as they are happy to pay for new product features The power of buyers is decreased because the firm offers a unique product and customers are brand loyal Price increases are passed onto the customer Substitute products depend on the ability of the differentiator to meet the same customer needs and to break customer loyalty Differentiation and brand loyalty creates a definite barrier to entry New organisations are forced to creates their own distinctive competency, which can be expensive DISADVANTAGES OF THE DIFFERENTIATION STRATEGY Challenges of the organisations long term ability to maintain its perceived uniqueness in customers eyes Competitors imitate and copy these differences It requires the organisation to develop a competitive advantage by making choices about its products, market, and distinctive competency that reinforce each other and together increase the value of a good or service in the eyes of the customer When differentiation stems from the design of physical features of the product, differentiators are at great risk not only because imitation is easy, buy because over time products become commodity like the importance of differentiation diminishes as customers become more price sensitive If differentiation originates from an intangible source (quality of service reliability prestige) The organisation is more secure because it is more difficult to imitate intangibles, but they must still be on the lookout for imitators and be aware that they dont charge higher prices This premium strategy aims to produce products and services which are considered unique across the industry The uniqueness must be based on dimensions widely valued by customers to achieve a higher market share than their competitors, which could yield cost benefits by offering better products at the same price Margins are enhanced by pricing the product or service slightly higher Improvements are made to increase the uniqueness which means that investments in R D and design expertise must be made It must be demonstrated how products and services meets customer needs better than the competitors The power of the brand is used as a promotional approach It can also base differentiation on the organisation's own competencies The consumers must perceive the value and must be willing to pay for it Organisations may pursue strategies based on predetermines assumptions rooted in experience, or based on resources and skills that the organisation is in possession of It must be determined what the customer values Competitors should be considered in terms of the size of the customer base Do they offer broadbased differentiation It should also be considered how difficult it would be for competitors to imitate differentiation The organisation needs to determine the base for the strategy, in terms of value and willingness to pay for the product If an organisation uses broad range differentiation of customer preferences, then the differentiation could be applied across an industry or markets where customers have a broad range of preferences Differentiation may be eroded when competing in global markets due to the fact that fact that many competitors arise in these markets Products and services should be difficult to imitate, and the differentiation should be protected on all fronts A differentiation strategy aimed at a large market should meet customers' needs in unique ways Value can be added by differentiating based in intangible features

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QUESTION 1 - BUSINESS NOTE: Pictures attached to assist with answering the question. Case study attached in order to answer the question.!!!! Takelot.com and Superbalist.com

QUESTION 1 - BUSINESS

NOTE: Pictures attached to assist with answering the question. Case study attached in order to answer the question.!!!!

Takelot.com and Superbalist.com

Takealot.com has built its business on the simple principle that their customers come first. Their business is retail, and they strive to have the widest range of products and the best possible customer service on the African continent. Takealot.com is doing it by employing great people and developing innovative, cutting-edge tech.

They are all about their customers. They want to be the most customer-centric online shopping destination in Africa to make online shopping so easy and seamless that everyone will feel comfortable doing it. Takealot.com wants to know their customers and be a part of their lives. They want each experience the customers have with them to leave them with a smile, whether its a confirmation email, an added detail on the packaging or even the return of an unwanted or damaged order. According to Takealot.com: Sure, were only human and we make mistakes, but when we do, we confront them honestly, openly and immediately, doing everything we can to make things right.

For takealot.com, 2014 was a truly pivotal year with the announcement of a $100m investment from Tiger Global. This was quickly followed by the purchase of Mr Delivery which gave the business ownership over its own logistics network through the Takealot Delivery Team division (formerly Mr D Courier) and its own app-based on-demand food delivery service through the MR D division (formerly Mr D Food). The same year saw the successful acquisition of Superbalist.com, a curated design and fashion website, and culminated in the announcement that Naspers-owned Kalahari.com would be merging businesses with takealot.com building the premier online shopping destination in Africa. The merge was successfully completed on 1 May 2015 when all Kalahari customer accounts were successfully transferred to Takealot.com.

In April 2022, Superbalist bought G-Ways CMT Manufacturing Proprietary Limited, a small clothing and textile manufacturing business which adds scale to its private-label business. Mr D, the Takealot groups delivery business, increased orders and GMV 9% and 13%, respectively, maintaining its strong position in South Africas main cities. Mr D announced its Pick n Pay grocery partnership in May 2022 and made trial deliveries in August.

Superbalist.com is South Africas most-loved online wardrobe + lifestyle destination. Were all about accessible style that inspires self-expression and confidence.

Superbalist.com teams and their ways of working:

Small, cross-functional teams.
Complete ownership of focus areas.
Collaboration with product, data science and UX.
Set goals and develop the most effective solutions to each of them.
Cross-team guilds focus on excellence in specific areas.
Teams are driven by and measured on results not work volume.

Superbalist.com perks:

Flexible working hours
Work from home/anywhere in SA
Working with top talent
Personal career development plans Staff discounts

QUESTION 1

Evaluate the use of the differentiation strategy Takealot.com is employing as illustrated in the case study provided.

below will assist you with the answer

image text in transcribed

ADVANTAGES OF THE DIFFERENTIATION STARTEGY

The organisation can safeguard against competitors by establishing customer loyalty towards its products.
Powerful suppliers aren't a problem because the organisation charges a price it can, rather than focussing on costs of production. Increases in prices are tolerated by customers as they are happy to pay for new product features.
The power of buyers is decreased because the firm offers a unique product and customers are brand loyal. Price increases are passed onto the customer.
Substitute products depend on the ability of the differentiator to meet the same customer needs and to break customer loyalty.
Differentiation and brand loyalty creates a definite barrier to entry. New organisations are forced to creates their own distinctive competency, which can be expensive.

DISADVANTAGES OF THE DIFFERENTIATION STRATEGY

Challenges of the organisations long-term ability to maintain its perceived uniqueness in customers eyes. Competitors imitate and copy these differences.
It requires the organisation to develop a competitive advantage by making choices about its products, market, and distinctive competency that reinforce each other and together increase the value of a good or service in the eyes of the customer.
When differentiation stems from the design of physical features of the product, differentiators are at great risk not only because imitation is easy, buy because over time products become commodity-like the importance of differentiation diminishes as customers become more price sensitive.
If differentiation originates from an intangible source (quality of service/reliability/prestige). The organisation is more secure because it is more difficult to imitate intangibles, but they must still be on the lookout for imitators and be aware that they dont charge higher prices.

- This premium strategy aims to produce products and services which are considered unique across the industry. - The uniqueness must be based on dimensions widely valued by customers to achieve a higher market share than their competitors, which could yield cost benefits by offering better products at the same price. - Margins are enhanced by pricing the product or service slightly higher. - Improvements are made to increase the uniqueness which means that investments in R \& D and design expertise must be made - It must be demonstrated how products and services meets customer needs better than the competitors. - The power of the brand is used as a promotional approach. - It can also base differentiation on the organisation's own competencies. - The consumers must perceive the value and must be willing to pay for it. - Organisations may pursue strategies based on predetermines assumptions rooted in experience, or based on resources and skills that the organisation is in possession of. It must be determined what the customer values. - Competitors should be considered in terms of the size of the customer base. Do they offer broadbased differentiation? - It should also be considered; how difficult it would be for competitors to imitate differentiation. - The organisation needs to determine the base for the strategy, in terms of value and willingness to pay for the product. - If an organisation uses broad range differentiation of customer preferences, then the differentiation could be applied across an industry or markets where customers have a broad range of preferences. - Differentiation may be eroded when competing in global markets due to the fact that fact that many competitors arise in these markets. - Products and services should be difficult to imitate, and the differentiation should be protected on all fronts. - A differentiation strategy aimed at a large market should meet customers' needs in unique ways. - Value can be added by differentiating based in intangible features