MNM3709 ASSIGNMENT 3 (ANSWERS) SEMESTER 2 2024 - DUE 1 OCTOBER 2024.

QUESTION 1 Porter’s model identifies three main generic strategies for creating competitive advantage: cost leadership, differentiation, and focus. Each strategy allows companies to leverage their strengths and outperform competitors by optimizing cost, enhancing unique offerings, or targeting specific market segments. Below, we evaluate these strategies with practical examples of how OBC Chicken and Meat has used them to establish a sustainable competitive advantage. Cost Leadership Cost leadership involves becoming the lowest-cost producer in an industry, enabling the company to offer products at lower prices than competitors while maintaining profitability. OBC Chicken and Meat exemplifies this strategy by maintaining a lowcost structure through bulk purchasing, efficient supply chains, and optimized distribution centers. These practices allow OBC to offer competitively priced meat and chicken products that attract budget-conscious consumers, particularly in lower Living Standards Measure (LSM) market segments (Wiid et al., 2020). Differentiation Differentiation focuses on creating products or services that are perceived as unique by consumers. OBC has implemented this strategy by maintaining high standards in store cleanliness, advanced refrigeration technology, and excellent customer service. The brand has also expanded its product range to include fish, processed meats, and dairy, providing a unique shopping experience for customers who associate OBC with quality and freshness. This differentiation approach has allowed OBC to build a strong brand identity, recognized as “Ekhaya Lenkukhu” (The home of chicken) (Wiid et al., 2024). Focus Strategy The focus strategy involves targeting a specific niche or market segment and tailoring products or services to meet the needs of that particular group. OBC employs this strategy by concentrating on the lower-income consumer market, particularly in townships, commuter zones, and city centers. By strategically positioning stores near transport hubs and catering to the needs of mass-market commuters, OBC has effectively captured a loyal customer base that values affordability and convenience