1|Page
MNG4801 Assignment 3 2026 (Answer Guide) - Strategic Management
VERIFIED AND CERTIFIED ANSWERS. WRITTEN IN REQUIRED FORMAT AND WITHIN
GIVEN GUIDELINES. IT IS GOOD TO USE AS A GUIDE AND FOR REFERENCE, NEVER
PLAGARIZE. Thank you and success in your academics.
UNISA, 2026
QUESTION 2: CORPORATE-LEVEL STRATEGIES
Introduction
Corporate-level strategy concerns the overall scope and direction of an organisation,
focusing on which industries and markets the firm should compete in to create value
and achieve sustainable growth (Louw & Venter, 2024). The Clicks Group's acquisition
of Sorbet represents a deliberate strategic move to strengthen its position in the health,
beauty and wellness retail sector. An analysis of the case study reveals four distinct
growth strategies employed by the group, each aligned with the Ansoff Matrix
framework.
Growth Strategy 1: Related Diversification
Related diversification involves entering new markets with new products that are linked
to the firm's existing operations through potential synergies (Ansoff, 1957; Louw &
Venter, 2024). The Clicks Group's R105 million acquisition of Sorbet in 2023 exemplifies
related diversification. This strategy is classified as related because the acquisition
aligns with Clicks' existing health, beauty and wellness offering, with Sorbet being
described as having "a natural strategic fit" (Clicks, 2026). The acquisition provides
Clicks with access to over 190 salons operating under the Sorbet, Sorbet Man and
Candi & Co brands, representing entry into the beauty salon services market while
leveraging Clicks' established retail infrastructure, supply chain expertise and loyalty
programme capabilities. The integration of Sorbet products into Clicks stores and the
cross-shopping effects between the two brands demonstrate the synergy realisation
central to related diversification (Louw & Venter, 2024) .
, 2|Page
Growth Strategy 2: Market Development
Market development involves taking existing products into new geographic or
demographic markets (Ansoff, 1957). The Clicks Group's expansion into Botswana,
Eswatini, Lesotho and Namibia represents a market development strategy, as Clicks
leverages its established brand recognition and retail expertise to enter new geographic
territories. The geographic footprint now includes 23 stores in Botswana, 27 stores in
Namibia, and stores in Eswatini and Lesotho (Clicks, 2026). Furthermore, the case
study reveals that Clicks has received interest from franchisees to open Sorbet
branches in Mauritius and Botswana (Mochiko, 2024; Clicks, 2026), indicating continued
market development opportunities. This strategy is less risky than diversification
because Clicks applies its proven retail model to new markets, adapting to local
customer preferences and regulatory environments.
Growth Strategy 3: Product Development
Product development involves introducing new products into existing markets (Ansoff,
1957). The Clicks Group has consistently pursued product development through its
private label and exclusive brand strategy. The group offers brands such as Pay Less,
Kambrook, Made4Baby, Smartbite, Smartlife and Oh So Heavenly (Clicks, 2026). The
private label contribution has grown to over 31% of sales, supporting income margins
amid regulated pharmacy pricing. The Sorbet range complements these offerings, with
the Sorbet BB Cream being voted South African Product of the Year in 2024 (Clicks
Group, 2024; Clicks, 2026). This strategy leverages the existing customer base and
retail network to introduce new product lines that deepen customer loyalty and increase
basket size.
Growth Strategy 4: Market Penetration
Market penetration involves increasing market share in existing markets with existing
products (Ansoff, 1957). The Clicks ClubCard, launched 30 years ago, represents a
sophisticated market penetration strategy. With more than 13 million active members
MNG4801 Assignment 3 2026 (Answer Guide) - Strategic Management
VERIFIED AND CERTIFIED ANSWERS. WRITTEN IN REQUIRED FORMAT AND WITHIN
GIVEN GUIDELINES. IT IS GOOD TO USE AS A GUIDE AND FOR REFERENCE, NEVER
PLAGARIZE. Thank you and success in your academics.
UNISA, 2026
QUESTION 2: CORPORATE-LEVEL STRATEGIES
Introduction
Corporate-level strategy concerns the overall scope and direction of an organisation,
focusing on which industries and markets the firm should compete in to create value
and achieve sustainable growth (Louw & Venter, 2024). The Clicks Group's acquisition
of Sorbet represents a deliberate strategic move to strengthen its position in the health,
beauty and wellness retail sector. An analysis of the case study reveals four distinct
growth strategies employed by the group, each aligned with the Ansoff Matrix
framework.
Growth Strategy 1: Related Diversification
Related diversification involves entering new markets with new products that are linked
to the firm's existing operations through potential synergies (Ansoff, 1957; Louw &
Venter, 2024). The Clicks Group's R105 million acquisition of Sorbet in 2023 exemplifies
related diversification. This strategy is classified as related because the acquisition
aligns with Clicks' existing health, beauty and wellness offering, with Sorbet being
described as having "a natural strategic fit" (Clicks, 2026). The acquisition provides
Clicks with access to over 190 salons operating under the Sorbet, Sorbet Man and
Candi & Co brands, representing entry into the beauty salon services market while
leveraging Clicks' established retail infrastructure, supply chain expertise and loyalty
programme capabilities. The integration of Sorbet products into Clicks stores and the
cross-shopping effects between the two brands demonstrate the synergy realisation
central to related diversification (Louw & Venter, 2024) .
, 2|Page
Growth Strategy 2: Market Development
Market development involves taking existing products into new geographic or
demographic markets (Ansoff, 1957). The Clicks Group's expansion into Botswana,
Eswatini, Lesotho and Namibia represents a market development strategy, as Clicks
leverages its established brand recognition and retail expertise to enter new geographic
territories. The geographic footprint now includes 23 stores in Botswana, 27 stores in
Namibia, and stores in Eswatini and Lesotho (Clicks, 2026). Furthermore, the case
study reveals that Clicks has received interest from franchisees to open Sorbet
branches in Mauritius and Botswana (Mochiko, 2024; Clicks, 2026), indicating continued
market development opportunities. This strategy is less risky than diversification
because Clicks applies its proven retail model to new markets, adapting to local
customer preferences and regulatory environments.
Growth Strategy 3: Product Development
Product development involves introducing new products into existing markets (Ansoff,
1957). The Clicks Group has consistently pursued product development through its
private label and exclusive brand strategy. The group offers brands such as Pay Less,
Kambrook, Made4Baby, Smartbite, Smartlife and Oh So Heavenly (Clicks, 2026). The
private label contribution has grown to over 31% of sales, supporting income margins
amid regulated pharmacy pricing. The Sorbet range complements these offerings, with
the Sorbet BB Cream being voted South African Product of the Year in 2024 (Clicks
Group, 2024; Clicks, 2026). This strategy leverages the existing customer base and
retail network to introduce new product lines that deepen customer loyalty and increase
basket size.
Growth Strategy 4: Market Penetration
Market penetration involves increasing market share in existing markets with existing
products (Ansoff, 1957). The Clicks ClubCard, launched 30 years ago, represents a
sophisticated market penetration strategy. With more than 13 million active members
