Formulation of Strategy for Spar Zambia Essay

Words: 4207
Pages: 17

EBU 4008

Module: Supply Chain Strategy

Assignment: Strategy Development Report

Student No.: 1110434
Submitted in partial fulfillment of the requirement for the degree of MSc in Logistics and Supply Chain Management.

University of Bolton


1. Introduction 4 2. Structure of the report 4 3. Organization and supply chain background 5 4. Review of Business Strategy 5 4.1 Market Penetration 5 4.2 Strategic alliances 6 4.3 SPAR: expansion and growth. 6 4.4 System. 7 4.5 Market Research 7 4.6 Supply Chain 7 5. PESTEL ANALYSIS and SWOT analysis 8 5.1 PESTLE ANALYSIS 8 5.2 SWOT Analysis 11 5. Porters five forces 13 5.1 Barriers to entry 13 5.2 Threat of substitutes 14 5.3 Bargaining
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It has to be innovative, creative and customer orientated as it looks at its product range and its supply chain. 5.6 Supply Chain

SPAR Zambia imports 10% of its products from South Africa’s Distribution Centers (DCs). SPAR has outsourced its part of its logistics management bringing about order-to-delivery lead-time reductions and overhead reductions. SPAR has entered into partnerships with RSA transporters to deliver straight to individual SPAR shops in Zambia. The elimination of a DC in Zambia means that there are lower overheads costs and less handling of goods (This eliminates waste in the supply chain). Other services that SPAR has outsources are security and cleaning services. However, one needs to be mindful of the fact that outsourcing can also generate negative externalities for the outsourcing firm. For example firms can experience diseconomies of scope in management of multiple firm activities or diseconomies of scale in producing a single activity. Source:Graves et al (1993). Both the advantages and disadvantages of outsourcing have to be looked at before a decision to outsource is reached. 90% of products are sourced locally with suppliers delivering to individual SPAR shops. SPAR is committed to supporting Zambian industries and developing local products.. Source: Interview with Dux Bhaga

The DCs in RSA have excelled with 171