QUESTION 4 A prominent example of a South African company that employs a cost leadership strategy is Shoprite Holdings Ltd. They focus on offering a wide range of products at lower prices than competitors, attracting cost-conscious consumers. As one of the largest supermarket chains in Africa, Shoprite benefits from economies of scale, enabling them to negotiate better prices with suppliers. Their efficient supply chain and logistics minimise costs, while a selection of private label products provides cheaper alternatives to branded items. Additionally, Shoprite's expansion into lower-income areas reinforces its commitment to accessible pricing, helping to maintain a strong competitive position in the South African retail market. Against this background, critically analyse Shoprite’s use of a cost leadership strategy.
QUESTION 4
A prominent example of a South African company that employs a cost leadership strategy is Shoprite Holdings Ltd. They focus on offering a wide range of products at lower prices than competitors, attracting cost-conscious consumers. As one of the largest supermarket chains in Africa, Shoprite benefits from economies of scale, enabling them to negotiate better prices with suppliers. Their efficient supply chain and logistics minimise costs, while a selection of private label products provides cheaper alternatives to branded items. Additionally, Shoprite's expansion into lower-income areas reinforces its commitment to accessible pricing, helping to maintain a strong competitive position in the South African retail market. Against this background, critically analyse Shoprite’s use of a cost leadership strategy.
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