MNG4801
EXAM PACK
,MNG4801
Assignment 3 – Due 2025
Question 3: Organisational Architecture Supporting Takealot’s Differentiation
Strategy (15 Marks)
As competition intensifies in South Africa’s e-commerce sector, Takealot.com has
implemented a differentiation strategy designed to deliver unique value to its
customers. Consistent with Porter’s (1985) framework of competitive strategies, this
approach is underpinned by a carefully designed organisational architecture that
drives innovation, efficiency, and customer focus. The three primary components—
structure, culture, and control systems—are critical enablers of Takealot’s strategic
objectives.
1. Structure that Enhances Agility and Focus
Takealot adopts a divisional structure, organising its operations into three core units:
Takealot.com (general retail), Superbalist (fashion retail), and Mr D (food delivery).
Each division functions semi-independently, enabling flexibility and faster responses to
specific market needs. This decentralisation ensures each unit develops tailored
services while benefiting from shared platforms such as logistics and IT.
For instance, Mr D’s logistics innovations can progress separately from
Superbalist’s marketing initiatives, while group-level strategic oversight ensures
overall alignment. This structure promotes responsiveness, strategic clarity, and
customer satisfaction—essential differentiators in the rapidly evolving online retail
landscape.
2. Culture of Innovation and Customer-Centricity
,Takealot fosters a workplace culture that prioritises creativity, adaptability, and
problem-solving. CEO Frederik Zietsman has emphasised the company’s
commitment to developing innovative service solutions, such as expanding payment
methods and ensuring faster delivery (Takealot, 2025).
Research by Mbatha & Mahlangu (2021) shows that South African e-commerce firms
embedding innovation in their culture are better positioned to retain customers and build
competitive advantage. Takealot demonstrates this through proactive initiatives like
TakealotMore, a subscription service launched ahead of Amazon’s South African entry
to strengthen customer loyalty and convenience.
3. Control Systems and Technology Integration
Takealot utilises advanced monitoring systems that combine data analytics and
customer feedback to measure service quality. Key metrics—such as delivery
efficiency, order fulfilment accuracy, and customer satisfaction—guide improvements
across units.
For example, Takealot.com focuses on reducing cart abandonment via UI
enhancements, while Mr D optimises delivery routes for speed. These tailored controls
align each unit with the company’s overarching goal: reliable, customer-focused
service delivery.
Conclusion
Takealot’s organisational design is well-suited to its differentiation strategy. A
decentralised structure fosters agility, an innovation-driven culture enables proactive
solutions, and integrated control systems ensure consistent execution. Collectively,
these mechanisms sustain Takealot’s competitive advantage in South Africa’s dynamic
e-commerce environment.
Question 4: Evaluating Mr Zietsman as a Strategic Leader
, What is a Strategic Leader?
A strategic leader is one who combines vision, foresight, and adaptability to guide an
organisation through complexity while safeguarding long-term performance. According
to Hitt et al. (2017), strategic leaders must:
Understand the organisation as an interconnected system.
Build structures that enable execution.
Drive change with integrity and innovation.
1. Understanding the Organisation Systemically
With over nine years at Takealot, Zietsman has deep insight into the group’s
interconnected operations. In a Business Talk (2024) interview, he highlighted how his
cross-departmental experience prepared him to lead strategically. His ability to integrate
activities across Mr D, Superbalist, and Takealot.com illustrates systemic thinking.
2. Building an Integrated Strategy Execution Model
As Group CEO, Zietsman strengthened the collective value proposition by
spearheading initiatives such as TakealotMore and forming partnerships with local
government. These initiatives highlight his role in integrating structure and strategy
across divisions, reinforcing brand cohesion.
3. Leading Strategic Change
Zietsman successfully led Takealot’s response to Amazon’s market entry, recognising
the limited preparation window and driving innovation and logistics optimisation
(Takealot, 2025). His adaptive leadership reflects the core traits of strategic foresight
emphasised by Ireland & Hitt (2005).
Conclusion
EXAM PACK
,MNG4801
Assignment 3 – Due 2025
Question 3: Organisational Architecture Supporting Takealot’s Differentiation
Strategy (15 Marks)
As competition intensifies in South Africa’s e-commerce sector, Takealot.com has
implemented a differentiation strategy designed to deliver unique value to its
customers. Consistent with Porter’s (1985) framework of competitive strategies, this
approach is underpinned by a carefully designed organisational architecture that
drives innovation, efficiency, and customer focus. The three primary components—
structure, culture, and control systems—are critical enablers of Takealot’s strategic
objectives.
1. Structure that Enhances Agility and Focus
Takealot adopts a divisional structure, organising its operations into three core units:
Takealot.com (general retail), Superbalist (fashion retail), and Mr D (food delivery).
Each division functions semi-independently, enabling flexibility and faster responses to
specific market needs. This decentralisation ensures each unit develops tailored
services while benefiting from shared platforms such as logistics and IT.
For instance, Mr D’s logistics innovations can progress separately from
Superbalist’s marketing initiatives, while group-level strategic oversight ensures
overall alignment. This structure promotes responsiveness, strategic clarity, and
customer satisfaction—essential differentiators in the rapidly evolving online retail
landscape.
2. Culture of Innovation and Customer-Centricity
,Takealot fosters a workplace culture that prioritises creativity, adaptability, and
problem-solving. CEO Frederik Zietsman has emphasised the company’s
commitment to developing innovative service solutions, such as expanding payment
methods and ensuring faster delivery (Takealot, 2025).
Research by Mbatha & Mahlangu (2021) shows that South African e-commerce firms
embedding innovation in their culture are better positioned to retain customers and build
competitive advantage. Takealot demonstrates this through proactive initiatives like
TakealotMore, a subscription service launched ahead of Amazon’s South African entry
to strengthen customer loyalty and convenience.
3. Control Systems and Technology Integration
Takealot utilises advanced monitoring systems that combine data analytics and
customer feedback to measure service quality. Key metrics—such as delivery
efficiency, order fulfilment accuracy, and customer satisfaction—guide improvements
across units.
For example, Takealot.com focuses on reducing cart abandonment via UI
enhancements, while Mr D optimises delivery routes for speed. These tailored controls
align each unit with the company’s overarching goal: reliable, customer-focused
service delivery.
Conclusion
Takealot’s organisational design is well-suited to its differentiation strategy. A
decentralised structure fosters agility, an innovation-driven culture enables proactive
solutions, and integrated control systems ensure consistent execution. Collectively,
these mechanisms sustain Takealot’s competitive advantage in South Africa’s dynamic
e-commerce environment.
Question 4: Evaluating Mr Zietsman as a Strategic Leader
, What is a Strategic Leader?
A strategic leader is one who combines vision, foresight, and adaptability to guide an
organisation through complexity while safeguarding long-term performance. According
to Hitt et al. (2017), strategic leaders must:
Understand the organisation as an interconnected system.
Build structures that enable execution.
Drive change with integrity and innovation.
1. Understanding the Organisation Systemically
With over nine years at Takealot, Zietsman has deep insight into the group’s
interconnected operations. In a Business Talk (2024) interview, he highlighted how his
cross-departmental experience prepared him to lead strategically. His ability to integrate
activities across Mr D, Superbalist, and Takealot.com illustrates systemic thinking.
2. Building an Integrated Strategy Execution Model
As Group CEO, Zietsman strengthened the collective value proposition by
spearheading initiatives such as TakealotMore and forming partnerships with local
government. These initiatives highlight his role in integrating structure and strategy
across divisions, reinforcing brand cohesion.
3. Leading Strategic Change
Zietsman successfully led Takealot’s response to Amazon’s market entry, recognising
the limited preparation window and driving innovation and logistics optimisation
(Takealot, 2025). His adaptive leadership reflects the core traits of strategic foresight
emphasised by Ireland & Hitt (2005).
Conclusion
