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MNG3701 Assignment 2 Semester 2 2025 - DUE 19 September 2025

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MNG3701 Assignment 2 Semester 2 2025 - DUE 19 September 2025

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,MNG3701 Assignment 2 Semester 2 2025 -
DUE 19 September 2025
1. Use the RBV model to analyse the internal environment of
Clicks Group Limited (10 marks)
1.1. What RBV (resource-based view) is — short definition
RBV says a firm’s sustained competitive advantage comes from
internal resources and capabilities that are valuable, rare,
inimitable (hard to copy) and organised so the firm can capture
value (often summarized as VRIO/VRIN). Resources = assets the
firm owns (tangible & intangible). Capabilities = what the firm
can do (processes, routines).
1.2. Identify Clicks’ key resources and capabilities (with
examples from the integrated report)
Below I list Clicks’ important resources/capabilities, and then
evaluate them using VRIO logic.
Tangible resources
 Extensive retail and pharmacy network: Clicks operates a
large store base (c. 936 stores and 720 pharmacies) across
South Africa and neighbouring countries — a major
physical footprint for convenience and market coverage.
Clicks Group.
 UPD distribution capability / logistics (wholesale arm):
the group owns UPD (United Pharmaceutical Distributors),

, a full-range pharmaceutical wholesaler that supports
Clicks’ pharmacy strategy and distribution. Clicks Group.
Intangible resources
 Strong brand and reputation: Clicks is presented as the
leading health & beauty retail brand in SA (brand equity
from decades of presence). Clicks Group.
 Clicks ClubCard data and loyalty programme: c. 11.8
million active ClubCard members (a very large customer
database) that drives a very high share of sales (over ~80%
of sales come from members) — a rich customer insight
and marketing tool. Clicks Groupbusinesstech.co.za.
Capabilities
 Private-label/product development capability: Clicks
develops and scales private labels; private label
contributed ~25.4% of sales and front-shop private label
share is even higher (30.3%), showing strong sourcing,
quality control and marketing capabilities. Clicks Group+1.
 IT & analytics capability: modernised systems, ClubCard
analytics and digital platforms (mobile app/online) enable
personalised offers, pricing and omnichannel service
(report notes completed/upgrading IT systems). Clicks
Group.

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