Answer to Question #109074 in Management for Leah

Question

Comment on the conditions that lead to defensive strategies. Use examples from the South
African retail industry to support your answer. (25)
1.2 Do you think Edcon’s decision to reintroduce the old department store format is appropriate?
Why or why not? (25)
1.3 Consider the growth in online retailers. How do they compare to the traditional brick- and –
mortar retailers in terms of corporate strategies?

Answer 1

1.1 Answer

Defensive strategy is a promotional device which assists in retaining businesses’ respected clients that can be carried away by entrants. The conditions that lead to defensive strategy are; loss of potential employees, intense competition, and liquidation, where the company loses a lot of money. However, the defensive strategy should be encouraged by a partnership among the government and business sector, government and private sectors, and the potentially inclusive role and financial growth agencies to create job opportunities as analyzed in South African retail industry.

1.2 Answer

Edcon’s decision to reintroduce the old department store format is not appropriate because the ancient department has submitted the global retailers under pressure due to accumulative debt, which results from the loss of market shares.

1.3 Answer

In terms of corporate strategies, online retailing only governs the breadth and assortment price. While the traditional bricks-and-mortar retail model determines the depth, scope, and variety price.