EXAM PACK
2025
,MNG3701
Assignment 2
Semester 2 2025
Due September 2025
,MNG3701
Assignment 2
Semester 2 2025
DUE September 2025
EXCEPTIONALLY CRAFTED
Clicks Group Limited and the Resource-Based View (RBV) Model: A Strategic
Application
, Contents
Clicks Group Limited and the Resource-Based View (RBV) Model: A Strategic
Application ................................................................................................................... 3
1. Distribution Network as a Strategic Asset ................................................................ 3
2. ClubCard Loyalty Program as a Data-Driven Resource .......................................... 3
3. Private Label and Exclusive Brands as Differentiation Tools ................................... 4
4. Resource Integration and Strategic Synergy ........................................................... 4
Conclusion and Strategic Implication ........................................................................... 5
Question 2: Clicks Group Limited – Business-Level Strategy ......................................... 6
a) Identified Strategy .................................................................................................... 6
b) Definition of Differentiation Strategy ........................................................................ 6
c) Reasons for Identifying Differentiation Strategy ....................................................... 6
d) Evaluation Using the ‘Suitability’ Criterion ............................................................... 7
Question 3: Four-Corner Analysis of a Major Competitor ................................................ 8
a) Explanation of Four-Corner Analysis ....................................................................... 8
b) Major Competitor ..................................................................................................... 8
c) Four-Corner Analysis of Dis-Chem .......................................................................... 8
Question 4: Macro-environmental Factors (PESTEL Analysis of Clicks Group Limited) 10
Economic Factors ...................................................................................................... 10
Political Factors ......................................................................................................... 10
Social Factors ............................................................................................................ 11
Technological Factors ................................................................................................ 11
Environmental Factors ............................................................................................... 11
Reference List ............................................................................................................... 13
, Question 1: RBV Model and Clicks Group Limited
The Resource-Based View (RBV), as articulated by Barney (1991), argues that a firm’s
sustainable competitive advantage stems from internal resources and capabilities that
are valuable, rare, inimitable, and non-substitutable (VRIN). This model provides a
focused lens through which to assess how Clicks Group Limited, a leading South
African retail and healthcare provider, leverages its internal assets to sustain
competitive advantage in a dynamic market environment.
1. Distribution Network as a Strategic Asset
Clicks’ network of over 936 retail outlets and 720 pharmacies meets the VRIN criteria by
offering widespread market accessibility and operational efficiency. The scale is
valuable due to its role in customer convenience and service delivery. It is rare because
the investment and logistical expertise required to replicate such reach pose significant
entry barriers. It is inimitable due to the time, infrastructure, and trust relationships built
over decades. It is non-substitutable because digital-only competitors cannot replicate
the immediacy and physical accessibility offered by this network.
More importantly, the value of this asset lies in how it integrates with real-time logistics,
data analytics, and localized inventory systems. This operational intelligence allows
Clicks to optimize stock levels and enhance responsiveness, a layer of competitive
strength that is not easily replicated through physical expansion alone.
2. ClubCard Loyalty Program as a Data-Driven Resource
The ClubCard loyalty program, with over 11.8 million active members, extends beyond
customer retention. It serves as a first-party data asset that enables Clicks to offer
personalized marketing and customer segmentation. The value lies in its ability to
increase customer lifetime value. It is rare due to its size, trust, and data quality. It is
inimitable because replicating both the technological infrastructure and consumer trust
is resource-intensive. It is non-substitutable since alternative programs lack the depth
and integration of Clicks’ system.
Beyond conventional loyalty, Clicks uses this program to generate anonymized
consumer insights, which are shared with suppliers and healthcare partners. This