MNM3709
Assignment 3 Semester 2 2024
Unique #:
Due Date: 1 October 2024
Detailed solutions, explanations, workings
and references.
+27 81 278 3372
, 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 low-cost 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
Varsity Cube 2024 +27 81 278 3372
Assignment 3 Semester 2 2024
Unique #:
Due Date: 1 October 2024
Detailed solutions, explanations, workings
and references.
+27 81 278 3372
, 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 low-cost 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
Varsity Cube 2024 +27 81 278 3372
