Exam (elaborations)
MNG3701 Exam 2024 | October 2024
- Institution
- University Of South Africa (Unisa)
MNG3701 Exam Oct 2024
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Question 11.1 Business Level Strategy
Business Level Strategy Identified:
Dischem pursues a cost leadership strategy as its business-level strategy. This
means that the company aims to be the lowest-cost producer in the pharmaceutical
and retail industry while still offering quality products and services.
Dischem achieves this strategy by implementing various cost-cutting measures and
focusing on efficiency in its operations. This approach allows the company to offer its
products at lower prices compared to its competitors, making it an attractive option for
customers who are looking for affordable healthcare solutions.
Examples from the Case Study:
1. Everyday Low Price (EDLP) Approach: Dischem emphasizes its commitment to
offering an Everyday Low Price, which allows customers to enjoy affordable
healthcare products consistently. This approach attracts price-sensitive consumers
who may be struggling with higher healthcare costs.
2. Wide Range of Products and Services: By providing a comprehensive shopping
experience that includes not only pharmaceuticals but also healthcare and beauty
products, Dischem can attract a larger customer base. This diversity enables the
company to maintain lower prices across its product offerings, as they can leverage
higher sales volumes to keep costs down.
1.2 Evaluation of Dischem's Strategic Choice Using Three Key Evaluation
Criteria
Criteria Explanation Evaluation
,Cost Efficiency This criterion Dischem meets this criterion as evidenced by
assesses its Everyday Low Price approach and
whether the commitment to cost-cutting measures.
business-
level strategy
allows the
company to
operate
efficiently,
keeping
costs low
while
maintaining
quality.
, Market Relevance This criterion Dischem meets this criterion because it offers a
examines wide range of products that cater to the diverse
whether the needs of its customers, ensuring they can find
strategy what they need in one place.
addresses
the needs
and
preferences
of the target
market
effectively.
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