,MNG3701 ASSIGNMENT 2 SEMESTER 2 2025
DUE DATE SEPTEMBER 2025
QUESTION 1:
RBV MODEL AND THE INTERNAL ENVIRONMENT OF CLICKS GROUP LIMITED
The Resource-Based View (RBV) model is a strategic framework that focuses on the
internal capabilities and resources of a firm as the primary source of competitive
advantage. According to Barney (1991), a firm can achieve and sustain a competitive
advantage if its resources are valuable, rare, inimitable, and non-substitutable (VRIN).
This model shifts attention away from external factors and emphasizes how internal
assets can be strategically deployed to outperform competitors. In analysing Clicks
Group Limited through the RBV lens, we examine how the company’s unique internal
resources contribute to its success in the South African pharmaceutical and retail
industry.
VALUABLE RESOURCES
Clicks Group possesses several valuable resources that provide operational and
strategic benefits. The most prominent is its extensive retail footprint, with over 850
stores and more than 700 in-store dispensaries across South Africa (Clicks Group
Integrated Report, 2024). This widespread physical presence allows the company to
provide accessible health and beauty products to a large portion of the population,
enhancing customer convenience and driving revenue growth. Additionally, the
Group’s ClubCard loyalty programme, which has over 9 million active members,
generates valuable consumer data that can be used to tailor marketing campaigns
and improve product offerings – a key asset in today’s data-driven economy.
RARE RESOURCES
, A rare resource is one not commonly possessed by current or potential competitors.
Clicks’ supply chain integration and private label development constitute rare
resources within the South African context. The company has invested significantly in
distribution infrastructure, such as the UPD (United Pharmaceutical Distributors)
logistics arm, which services not only Clicks stores but also independent pharmacies
and hospitals. This gives Clicks a strategic edge in terms of cost control, delivery
speed, and inventory management. Moreover, Clicks’ in-house brands, including the
eponymous Clicks range and Sorbet, offer exclusive, competitively priced products
that are not available through other retailers, reinforcing consumer loyalty and
increasing margins.
INIMITABLE RESOURCES
For a resource to contribute to a sustained competitive advantage, it must be difficult
to imitate. Clicks’ corporate culture, strategic relationships, and accumulated
experience represent inimitable assets. The company’s over 50-year history in the
retail sector has allowed it to build robust processes, long-standing supplier
relationships, and regulatory expertise, especially in pharmacy licensing and
compliance. These intangible capabilities, embedded in organisational routines and
employee know-how, are complex and time-consuming for competitors to replicate.
In particular, the integration of pharmacy services within a retail setting requires both
licensing and operational alignment, making it difficult for new entrants to emulate
Clicks’ model without significant investment and risk.
NON-SUBSTITUTABLE RESOURCES
Clicks Group’s resources are also non-substitutable, meaning there are few or no
alternatives that can offer the same benefits. Its pharmacy retail hybrid model offers
convenience by combining healthcare, beauty, and wellness products under one roof.
This model cannot be easily substituted by online-only platforms or single-category
retailers. Furthermore, Clicks’ alignment with the South African Department of
Health's objectives around accessible primary healthcare through its participation in
DUE DATE SEPTEMBER 2025
QUESTION 1:
RBV MODEL AND THE INTERNAL ENVIRONMENT OF CLICKS GROUP LIMITED
The Resource-Based View (RBV) model is a strategic framework that focuses on the
internal capabilities and resources of a firm as the primary source of competitive
advantage. According to Barney (1991), a firm can achieve and sustain a competitive
advantage if its resources are valuable, rare, inimitable, and non-substitutable (VRIN).
This model shifts attention away from external factors and emphasizes how internal
assets can be strategically deployed to outperform competitors. In analysing Clicks
Group Limited through the RBV lens, we examine how the company’s unique internal
resources contribute to its success in the South African pharmaceutical and retail
industry.
VALUABLE RESOURCES
Clicks Group possesses several valuable resources that provide operational and
strategic benefits. The most prominent is its extensive retail footprint, with over 850
stores and more than 700 in-store dispensaries across South Africa (Clicks Group
Integrated Report, 2024). This widespread physical presence allows the company to
provide accessible health and beauty products to a large portion of the population,
enhancing customer convenience and driving revenue growth. Additionally, the
Group’s ClubCard loyalty programme, which has over 9 million active members,
generates valuable consumer data that can be used to tailor marketing campaigns
and improve product offerings – a key asset in today’s data-driven economy.
RARE RESOURCES
, A rare resource is one not commonly possessed by current or potential competitors.
Clicks’ supply chain integration and private label development constitute rare
resources within the South African context. The company has invested significantly in
distribution infrastructure, such as the UPD (United Pharmaceutical Distributors)
logistics arm, which services not only Clicks stores but also independent pharmacies
and hospitals. This gives Clicks a strategic edge in terms of cost control, delivery
speed, and inventory management. Moreover, Clicks’ in-house brands, including the
eponymous Clicks range and Sorbet, offer exclusive, competitively priced products
that are not available through other retailers, reinforcing consumer loyalty and
increasing margins.
INIMITABLE RESOURCES
For a resource to contribute to a sustained competitive advantage, it must be difficult
to imitate. Clicks’ corporate culture, strategic relationships, and accumulated
experience represent inimitable assets. The company’s over 50-year history in the
retail sector has allowed it to build robust processes, long-standing supplier
relationships, and regulatory expertise, especially in pharmacy licensing and
compliance. These intangible capabilities, embedded in organisational routines and
employee know-how, are complex and time-consuming for competitors to replicate.
In particular, the integration of pharmacy services within a retail setting requires both
licensing and operational alignment, making it difficult for new entrants to emulate
Clicks’ model without significant investment and risk.
NON-SUBSTITUTABLE RESOURCES
Clicks Group’s resources are also non-substitutable, meaning there are few or no
alternatives that can offer the same benefits. Its pharmacy retail hybrid model offers
convenience by combining healthcare, beauty, and wellness products under one roof.
This model cannot be easily substituted by online-only platforms or single-category
retailers. Furthermore, Clicks’ alignment with the South African Department of
Health's objectives around accessible primary healthcare through its participation in
