Competition in South Africa
What does it
Mean?
Competition = the struggle between businesses for customers, market
share & profits.
SA Context Matters:
Competition in South Africa is shaped by:
📉 Low economic growth
🚫 High unemployment
⚖️ High poverty & inequality
🌎 Strong global competition
🛒 Large informal economy
Competition in South Africa 1
, 🔑 Key Features of Competition in SA
1. Competition is about 2. Dual Economy
Survival Competition
⛽ High & fluctuating fuel prices 🏢 Formal 🛍️ Informal
💡 Unreliable electricity Economy
VS
Economy
💸 Weak consumer spending Registered
Unregistered
businesses
Example: businesses
A restaurant in Stellenbosch Spaza shops
survives by: Pay tax Street vendors
Daily specials Follow labour
laws
Affordable combos
Uber Eats delivery Formal Informal (Spaza
(Shoprite) Shop)
When growth is low → Bulk discounts Close to homes
businesses fight harder for
Credit (buy now, pay
fewer customers. Loyalty cards
later)
Smaller affordable
Lower prices
packs
3. Consumers Are Highly 4. Influence of Branding
Price Sensitive & Trust
Most South Africans: Price is important, but trust builds
Compare prices carefully loyalty.
Trust comes from:
Focus on affordability
High quality
Look for promotions
Reliable service
Consider transport costs
Strong reputation
Want value for money
Good systems
Example:
Boxer chosen over Woolworths Example:
because it’s cheaper. Discovery Bank trusted because of
well-functioning apps & trusted
Competition in South Africa 2
What does it
Mean?
Competition = the struggle between businesses for customers, market
share & profits.
SA Context Matters:
Competition in South Africa is shaped by:
📉 Low economic growth
🚫 High unemployment
⚖️ High poverty & inequality
🌎 Strong global competition
🛒 Large informal economy
Competition in South Africa 1
, 🔑 Key Features of Competition in SA
1. Competition is about 2. Dual Economy
Survival Competition
⛽ High & fluctuating fuel prices 🏢 Formal 🛍️ Informal
💡 Unreliable electricity Economy
VS
Economy
💸 Weak consumer spending Registered
Unregistered
businesses
Example: businesses
A restaurant in Stellenbosch Spaza shops
survives by: Pay tax Street vendors
Daily specials Follow labour
laws
Affordable combos
Uber Eats delivery Formal Informal (Spaza
(Shoprite) Shop)
When growth is low → Bulk discounts Close to homes
businesses fight harder for
Credit (buy now, pay
fewer customers. Loyalty cards
later)
Smaller affordable
Lower prices
packs
3. Consumers Are Highly 4. Influence of Branding
Price Sensitive & Trust
Most South Africans: Price is important, but trust builds
Compare prices carefully loyalty.
Trust comes from:
Focus on affordability
High quality
Look for promotions
Reliable service
Consider transport costs
Strong reputation
Want value for money
Good systems
Example:
Boxer chosen over Woolworths Example:
because it’s cheaper. Discovery Bank trusted because of
well-functioning apps & trusted
Competition in South Africa 2
