MANDATORY ASSIGNMENT 02 FOR SEMESTER 2 2025
Assignment 02 assesses the outcomes in Lessons 4, 5 and 6
ASSIGNMENT 02 SEMESTER 02
Essay Total marks: 50
Case study Clicks
Instructions:
Condiict an internat cearch and arcacs tha Clicks Intearated Renart far 2022
, Strategic Analysis of Clicks Group Limited: An Integrated Report Perspective
Introduction
In the dynamic and highly competitive South African retail sector, strategic managementis
not a luxury but a necessity for survival and growth. This essay conducts a strategic analysis
of Clicks Group Limited, a leading retail pharmacy and health beauty group, based on its
2023 Integrated Report. The analysis will delve into the internal environment using the
Resource-Based View (RBV), identify and evaluate its business-level strategy, perform a
competitive analysis on a key rival, and assess the macro-environmental
factors influencing
the group. By weaving theoretical frameworks with practical evidence from the report, this
essay aims to provide a holistic understanding of Clicks' strategic positioning and future
prospects.
1. Analysis of the Internal Environment using the RBV Model
The Resource-Based View (RBV) model posits that a firm's sustainable competitive
advantage is derived from its unique bundle of resources and capabilities that are valuable
(V), rare (R), inimitable (I), and non-substitutable (N) — the VRIN framework (Rothaermel,
2024). A resource is valuable if it allows the firm to exploit an opportunity or neutralize a
threat in the environment.
Clicks Group Limited demonstrates a strong resource position that aligns with this model.
Its tangible resources are significant, including a extensive network of 893 stores across
southern Africa (Clicks Group Integrated Report 2023: 6). This physical presence is a
valuable and rare asset that is costly for competitors to replicate quickly. Furthermore, its
strong financial performance, with group turnover increasing by 7.8% to R41.5 billion (2023:
28), provides the capital necessary for reinvestment and strategic initiatives.
More critically, its intangible resources form the core of its advantage. The ‘Clicks’ and ‘The
Body Shop’ brands are highly valuable, evoking trust and familiarity among consumers. Its
UPD loyalty programme, with over 10.3 million active members (2023: 21), is a rare and
incredibly valuable resource. This vast database provides unparalleled customer insights,
drives repeat business, and creates a high switching cost for customers, making it difficult
for competitors to imitate, thus fulfilling
the VRIN criteria.
Finally, its capabilities—how it deploys these resources—are crucial. Its sophisticated
supply chain and distribution capabilities ensure high product availability and efficiency. Its
capability in managing a dual-brand strategy (Clicks for pharmacy/health and The Body Shop
for ethical beauty) allows it to capture different market segments effectively. The integration
of its Clinic and Pharmacy services within stores is a complex, organisation-wide capability
Assignment 02 assesses the outcomes in Lessons 4, 5 and 6
ASSIGNMENT 02 SEMESTER 02
Essay Total marks: 50
Case study Clicks
Instructions:
Condiict an internat cearch and arcacs tha Clicks Intearated Renart far 2022
, Strategic Analysis of Clicks Group Limited: An Integrated Report Perspective
Introduction
In the dynamic and highly competitive South African retail sector, strategic managementis
not a luxury but a necessity for survival and growth. This essay conducts a strategic analysis
of Clicks Group Limited, a leading retail pharmacy and health beauty group, based on its
2023 Integrated Report. The analysis will delve into the internal environment using the
Resource-Based View (RBV), identify and evaluate its business-level strategy, perform a
competitive analysis on a key rival, and assess the macro-environmental
factors influencing
the group. By weaving theoretical frameworks with practical evidence from the report, this
essay aims to provide a holistic understanding of Clicks' strategic positioning and future
prospects.
1. Analysis of the Internal Environment using the RBV Model
The Resource-Based View (RBV) model posits that a firm's sustainable competitive
advantage is derived from its unique bundle of resources and capabilities that are valuable
(V), rare (R), inimitable (I), and non-substitutable (N) — the VRIN framework (Rothaermel,
2024). A resource is valuable if it allows the firm to exploit an opportunity or neutralize a
threat in the environment.
Clicks Group Limited demonstrates a strong resource position that aligns with this model.
Its tangible resources are significant, including a extensive network of 893 stores across
southern Africa (Clicks Group Integrated Report 2023: 6). This physical presence is a
valuable and rare asset that is costly for competitors to replicate quickly. Furthermore, its
strong financial performance, with group turnover increasing by 7.8% to R41.5 billion (2023:
28), provides the capital necessary for reinvestment and strategic initiatives.
More critically, its intangible resources form the core of its advantage. The ‘Clicks’ and ‘The
Body Shop’ brands are highly valuable, evoking trust and familiarity among consumers. Its
UPD loyalty programme, with over 10.3 million active members (2023: 21), is a rare and
incredibly valuable resource. This vast database provides unparalleled customer insights,
drives repeat business, and creates a high switching cost for customers, making it difficult
for competitors to imitate, thus fulfilling
the VRIN criteria.
Finally, its capabilities—how it deploys these resources—are crucial. Its sophisticated
supply chain and distribution capabilities ensure high product availability and efficiency. Its
capability in managing a dual-brand strategy (Clicks for pharmacy/health and The Body Shop
for ethical beauty) allows it to capture different market segments effectively. The integration
of its Clinic and Pharmacy services within stores is a complex, organisation-wide capability
