QUESTION ONE Conduct an environmental analysis for the Cape Union Mart using Porter's five forces. For each of the 5 forces, critically analyse the severity and impact of the force to the success of the Cape Union Mart. Make recommendations on how to manage or leverage risks and opportunities presented by each of the 5 forces. (20)

CASESTUDY

Cape union mart: digital transformation and customer experience during a crisis Aldi Schoeman, Geoff Bick and Claire Barnardo 1. Introduction In September 2020, Grant De Waal-Dubla watched as the boxes were loaded into the yellow delivery van. From the distribution centre (DC) in Montague Gardens, an industrial area in Cape Town, the courier would deliver the new backpacks, hiking boots, sun hats and other outdoor clothes that had been ordered from Cape Union Mart to customers across the country. Those living in the city would receive it within a day, and customers in remote areas would have it in less than a week. They would be ready to explore the mountain or bushveld in the coming summer holidays. As an executive of e-commerce and information technology (IT) at the Cape Union Mart Group, it was De Waal-Dubla's responsibility to make sure that they were happy with their online purchases - and he had no doubt that they would be delighted. He marvelled at the progress that the organisation had made in the past eight months. South African consumers had always been slow to adapt to online shopping, but the Covid-19 pandemic had left them with no choice. At the Cape Union Mart Group, the contribution of online sales to the Group's revenue increased from 2% to almost 7% (Exhibit 1) [1]. However, the journey had not been easy. Just a few months prior, the DC was in a much different state. No one was allowed inside due to Covid-19 lockdown regulations. Meanwhile, consumers were ordering more than ever before, causing an enormous backlog. De Waal-Dubla remembered sitting at his temporary makeshift office at home, doing the calculations and realising that chances were slim that all these orders would ever be fulfilled. How would they be able to pack as many orders as fast as possible once they were allowed to go back in? How would they handle the complaints from customers? How would they convince their colleagues in other departments to prioritise their e-commerce responsibilities? Yet, the company had overcome these challenges only to find that there were new issues to face. As a result of the lockdown, they had already reached the turnover target for e-commerce for the 2020/2021 financial year. Based on this success during the pandemic, Philip Krawitz, the owner and chairman of the company, then set a new target for e-commerce. Mr Krawitz now had high expectations. They had to grow their e-commerce turnover by another 20% by the end of the financial year in March 2021 [2]. De Waal-Dubla took his phone from his pocket and started typing a name with his thumb. Belinda, he said when Belinda Knol, the head of e-commerce, answered the phone. I am driving back to the office now from the distribution centre. Can you meet me in my office in 20 minutes, please? They had to devise a strategy to increase their revenue - and fast. Not only was there the challenge to increase the turnover, but how would they be able to maintain customer