Edcon : a case study in strategic management

De Witt, Jacques (2000-12)

Thesis (MBA)--Stellenbosch University, 2000.

Thesis

ENGLISH ABSTRACT: The consumer in 2000 has various new options on which to spend money, even when compared to only one year ago. In South Africa new spending destinations and higher interest rates, fuel prices and administered prices led to changes in consumer patterns, which implies less spending on traditional retail products such as furniture, clothes, shoes and more spending in the growth sectors such as cell phones and internet. The retailer who wants to ensure success in this changing environment has to competently address a number of strategic issues. Effective positioning significantly contributes to an organisations competitiveness and consequent success in any line of business. The loss of the Edgars group clothing, footwear and textile market share despite expensive efforts to buy sales and add space, was the clearest indicator that every retailer's most treasured asset, the customer, was migrating to competitors, and/or spending less with the group. In this study the key strategic issues that led to Edgars decline in marketshare from 1995 through to 2000 has been examined in the light of changes in the internal and external environment of retail. Case study research in the form of documentary analysis of Edgars, together with knowledge originating from the literature review, provided a sound basis for generating questions to be answered.

AFRIKAANSE OPSOMMING: Die verbruiker het in die jaar 2000 verskeie nuwe opsies waarop geld spandeer kan word. Nuwe bestedingsareas in Suid-Afrika het as gevolg van hoër rentekoerse, brandstofpryse en administraiewe kostes gelei tot verandering in verbruikerspatrone, wat impliseer dat minder op tradisionele handelsprodukte soos meubels, klere, en skoene teenoor sektore soos selfone en die internet spandeer word. Die handelaar wat 'n sukses in so 'n situasie wil verseker, moet 'n aantal strategiese vraagstukke op 'n bekwame en vaardige wyse aanspreek. Effektiewe posisionering sal 'n besondere bydrae maak tot enige onderneming se mededinging en sukses. Die verlies aan markaandeel van Edgars se klerasie, skoene en tekstiel bedryf ten spyte van hoë besteding aan bemarking en addisionele vloerspasie, was 'n duidelike aanwysing dat elke handelaar se mees gewaardeerde bate, die klient, na kompetisie migreer of minder by die handelaar spandeer. In hierdie studie word verskeie strategiese vraagstukke ondersoek in die lig van die interne en eksterne omgewing van die handelaar. Identifisering van hierdie veranderinge en tendense sal handelaars help om probleme te formuleer vir verdere strategiee. Gevallestudie navorsing in die vorm van dokumentere analise rakende die Edgars ondersoek, tesame met kennis verkry uit literatuuroorsig, het 'n sterk grondslag gelê vir die formulering van vrae wat beantwoord kan word.

Please refer to this item in SUNScholar by using the following persistent URL: http://hdl.handle.net/10019.1/51735
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