MAX: KICKSTARTING LAST-MILE
LOGISTICS IN LAGOS
CASE STUDY ANALYSIS
MODULE TITLE: STRATEGIC MANAGEMENT LCMB7003
LECTURER: DR. GLADIUS KULOTHUNGAN
STUDENT NAME: NADEZHDA KITANOVA
STUDENT NUMBER: 1918675
University of Wales Trinity Saint David
,TABLE OF CONTENTS
1. Introduction
2. MAX’s Business Model
3. Industry highlights
4. External analysis of MAX Nigeria
4.1 Applying Porter’s Five Forces
5. Internal analysis of MAX Nigeria
5.1 Value chain
5.2 Resource-based analysis & VRIO
5.3 McKinsey 7s
6. Future strategies for competitive advantage & growth for MAX
6.1 Ansoff Matrix
6.2 Strategic clock
7. Conclusion
8. Recommendations
9. References
, 1. INTRODUCTION
The growth of eCommerce on the African continent over the past few years has
created a business opportunity for another sector – fulfilment logistics. Metro Africa
Xpress (MAX) is a Nigerian start-up with a mission to bring economic growth for the
people of Nigeria and Africa and to revolutionize the way business is done across the
continent. Relying highly on technology, MAX is putting a focus on creating added
value by its operations for employees, customers and the society in general. During
the first 2 years since its launch in 2015, the company had experienced 20% monthly
growth in its revenues and services. This report aims to analyze the emergent
strategy of Metro Africa Xpress and its core sources of growth and competitive
advantage. The first part of this report examines the macroenvironment of the
company and the industry environment, along with the opportunities and threats,
created by external factors. Chapter 4 explores the internal capabilities of MAX,
while chapter 5 analyzes future growth strategies. Based on the findings in this
report, chapter 8 summarizes strategic recommendations for gaining and maintaining
competitive advantage.
2. MAX’s BUSINESS MODEL
Metro Africa Xpress addressed the last-mile delivery and online-retail problems by
using mobile and web platforms to connect consumers, retail businesses, and
independent drivers in real-time thus eliminating numerous logistics and technology
barriers that have prevented retail businesses in Africa from realizing their full
potential.
MAX is the only on-demand delivery service that guarantees 3-hour delivery in the
large and dense urban area of Lagos. MAX doesn’t just serve online merchants, the
company also works with SMBs and corporations which are not economically able to
maintain in-house logistics teams. Despite this, MAX engages in ride-hailing and
food delivery as well. Although the model is new for the Nigerian market, it is quite
similar to other fast-developing start-ups like Uber and Deliveroo. What is unique
about MAX and gives them a competitive advantage, is the deep understanding of the
local market and the genuine drive towards corporate social responsibility (CSR).
Despite being a global practice for corporations, literature doesn't provide a clear
universal definition of CSR. The most common definition is firms' activities that
LOGISTICS IN LAGOS
CASE STUDY ANALYSIS
MODULE TITLE: STRATEGIC MANAGEMENT LCMB7003
LECTURER: DR. GLADIUS KULOTHUNGAN
STUDENT NAME: NADEZHDA KITANOVA
STUDENT NUMBER: 1918675
University of Wales Trinity Saint David
,TABLE OF CONTENTS
1. Introduction
2. MAX’s Business Model
3. Industry highlights
4. External analysis of MAX Nigeria
4.1 Applying Porter’s Five Forces
5. Internal analysis of MAX Nigeria
5.1 Value chain
5.2 Resource-based analysis & VRIO
5.3 McKinsey 7s
6. Future strategies for competitive advantage & growth for MAX
6.1 Ansoff Matrix
6.2 Strategic clock
7. Conclusion
8. Recommendations
9. References
, 1. INTRODUCTION
The growth of eCommerce on the African continent over the past few years has
created a business opportunity for another sector – fulfilment logistics. Metro Africa
Xpress (MAX) is a Nigerian start-up with a mission to bring economic growth for the
people of Nigeria and Africa and to revolutionize the way business is done across the
continent. Relying highly on technology, MAX is putting a focus on creating added
value by its operations for employees, customers and the society in general. During
the first 2 years since its launch in 2015, the company had experienced 20% monthly
growth in its revenues and services. This report aims to analyze the emergent
strategy of Metro Africa Xpress and its core sources of growth and competitive
advantage. The first part of this report examines the macroenvironment of the
company and the industry environment, along with the opportunities and threats,
created by external factors. Chapter 4 explores the internal capabilities of MAX,
while chapter 5 analyzes future growth strategies. Based on the findings in this
report, chapter 8 summarizes strategic recommendations for gaining and maintaining
competitive advantage.
2. MAX’s BUSINESS MODEL
Metro Africa Xpress addressed the last-mile delivery and online-retail problems by
using mobile and web platforms to connect consumers, retail businesses, and
independent drivers in real-time thus eliminating numerous logistics and technology
barriers that have prevented retail businesses in Africa from realizing their full
potential.
MAX is the only on-demand delivery service that guarantees 3-hour delivery in the
large and dense urban area of Lagos. MAX doesn’t just serve online merchants, the
company also works with SMBs and corporations which are not economically able to
maintain in-house logistics teams. Despite this, MAX engages in ride-hailing and
food delivery as well. Although the model is new for the Nigerian market, it is quite
similar to other fast-developing start-ups like Uber and Deliveroo. What is unique
about MAX and gives them a competitive advantage, is the deep understanding of the
local market and the genuine drive towards corporate social responsibility (CSR).
Despite being a global practice for corporations, literature doesn't provide a clear
universal definition of CSR. The most common definition is firms' activities that
