MNM2604_Ass03

1. INTRODUCTION: Adhesive Africa (AAf) has been affected and impacted negatively by market dynamics that affect most businesses in the market and which has led to the decline in the profit of the business. The report will look at the dynamics and how best can the value chain be revamped to keep AAf competitive. Which aspects are you going to discuss?? 2. THE DYNAMIC BUSINESS ENVIRONMENT First introduce the topic. 2.1 Global competition: More companies that are in the same market increased in South Africa, and some were global companies hence increased competition. AAf had to compete with these global competitors from other countries which came with competitive cheaper prices on the same product. Through globalisation, SA client firms can source products and services on a global scale and are not confined only to the SA products or companies therefore increasing competition. We know China has become the most global competitor in SA with cheaper prices on products.  AAf must consider importing Adhesive products from China and other global countries that supply reasonable prices, but to ensure not to compromise on quality to sustain the business.  They will have to increase quantity on their product so that they do not run out of stock when demand is more.  They must consider exporting some of their products to other countries like Zimbabwe and increase their market share and client base to maintain and sustain their business. 2.2 New Disruptive Technology: With the new technology and new applications that are introduced daily, many local companies become impacted as technological competition becomes prevalent. The new entrants came with the technically advanced adhesives and AAf had to compete with them.  AAf needs to create an attractive website that will enable the client firms to order online without having to go physically to them.  They will have to utilise social media as a marketing tool for their clients and for communication purposes, as they will have to recite on what the potential clients require/need, and then supply as per the needs of the clients/firms.  They will have to invest on advertising as another marketing tool to attract customers and they must ensure that their adverts indicates their being a S.African company (citizenship), as most client firms are strict on utilising local companies. Etc 1.3 Aggressive competitive behaviour: A firm may be a big, well structured and reputable organisation, but if they take longer periods to deliver to clients, that impacts negatively on the organisation as the client firms will look for alternative competing firm that will accelerate and deliver (with speed). Flexibility to react to any change in the market place is also very important and critica