QUESTION 3 - 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 3

Analyse the growth strategy used by Takealot.com. Which growth strategy is used out of the four growth strategies - market penetration, product development, market development, and diversification and added as well integration strategies and cooperate combination strategy. Please give the analysis on what growth strategy is used, and support and give examples according to the case study.

below will assist you with the answer

Growth strategies Strategies are used when opportunities exist, and the organisation is able to exploit them. Organisations seek growth for the following reasons: - Expansion boosts profitability and business valuation. - Improves the competitive position of the business. - To tap into new markets and or expand their market reach through mergers. - Leveraging existing technologies into new markets and lowering costs. - To satisfy management's egos. Concentrated growth or market penetration (Internal growth strategy) - The aim is to remain within the organisation's current range of products or services while attempting to attract customers from directly competing products. - The starting point is to focus on existing customers. - It is cheaper to retain them than to attract new ones. - Viable option if the market is growing, and if existing customer loyalties are less secure, and new customers entering the market may still be searching for the most acceptable product. - High rate of success, with low risk as the organisations product and marketing skills are concentrated on specialised products and concentrated markets Consolidation The businesses focus is on maintaining market share in existing markets with its existing products. The environment may force the organisation to reshape or innovate to improve the value of its products or services. Two examples of consolidation: - Reshaping through downsizing - The organisation might withdraw or downsize as profitability diminishes. Profitability will change during different stages of the product life cycle. - Maintaining market share - Organisations that possess a large share of the market are in a better position than their competitors to maintain that high market share. In this instance an organisation can utilise economies of scale leading to higher turnover, and R \& Dor sales ratios. More money is available to spend on R \& D leading to the development of strategies of higher price or higher quality compared to low-market share competitors. Market development Exploring new markets with the aim of meeting needs with current products. This option is used when there are limited opportunities in the current market segment. The organisation can develop new uses for existing products. It increases the usage rate of the product by their own market and attracts customers from the rival competitors. New geographical areas could be entered. Suitable when new channels of distribution are available that are reliable and of good quality and when the organisation has the necessary capital, expertise and resources to manage expanded operations. Product development When organisations deliver modified or new products to existing markets. Involves large R \& D budgets and can be a costly strategy. Usually used when the current products are in the maturity stage, thus prompting strategic decision makers to explore product development to offer an improved product. - The rationale is to attract satisfied customers to try new products, as a result of their positive experiences with the organisations existing products. The product line can also be extended to draw new segments. The product must meet the expectations of the customers, to eliminate product switching. The organisation might need to develop new capabilities. DIVERSIFICATION STRATEGIES Adding new businesses to an organisation's current portfolio of businesses. Organisation could operate in two or more industries. Could include new products, new markets, and franchising. The aim - to secure additional market share that may lead to increased power and improved profitability. High levels of diversification may be risky. LOUW AND VENTER (2019) INTEGRATION STRATEGIES Organisations sometimes acquire other enterprises similar to their business. Growth through integration may occur through acquisition and amalgamation (horizontal integration), or through suppliers or distributors (vertical integration). COOPERATIVE OR CORPORATE COMBINATION STRATEGIES Enables organisations to form partnerships to share resources, capabilities, or technical know-how to build a competitive strategy. Does not posses the heavy investment of acquisitions or mergers but achieves the same outcome. Organisations join hands with competitors for mutual benefit. Joint ventures Strategic alliances LOUW AND VENTER ( 2019)