Question 1

2.2
Environmental scanning is crucial for businesses like Shoprite to stay informed about external
factors that can impact their operations. The three main methods of environmental scanning
include:

1. PESTEL Analysis:
PESTEL analysis focuses on political, economic, social, technological, environmental, and legal
factors that can influence a company’s operations. For example, in the case of Shoprite, an
analysis of economic factors such as inflation rates and consumer spending habits can help the
management understand the current market conditions and make informed decisions about
pricing strategies and product offerings.
2)SWOT Analysis:
SWOT analysis helps businesses identify their strengths, weaknesses, opportunities, and threats.
For example, Shoprite’s management can use this analysis to assess the strengths of their
discount store chains in attracting price-sensitive consumers, as well as the weaknesses in their
supply chain management that may impact their ability to meet increased demand during peak
shopping periods.

3)Competitor Analysis:
Competitor analysis involves monitoring the strategies and performance of competitors in the
market. For example, Shoprite can track the expansion plans and pricing strategies of rival
grocery retailers to stay competitive and identify potential areas for growth. By understanding
the strengths and weaknesses of competitors, Shoprite’s management can adjust their own
strategies to capitalize on market opportunities.
Overall, using these three methods of environmental scanning can help Shoprite’s management
anticipate changes in the market, identify potential risks and opportunities, and make strategic
decisions to stay ahead of the competition and drive business growth.
Questions 2

2.1 Segmenting the target audience of Takealot using the five forms of segmentation:
1. Geographic Segmentation: Takealot targets customers across South Africa, including both
urban areas and townships. They have expanded their delivery network to reach customers in
smaller towns and remote areas.
2. Demographic Segmentation: Takealot caters to a wide range of demographic groups, including
age, income, education level, and occupation. They offer a variety of products to appeal to
different demographics.
3. Psychographic Segmentation: Takealot targets customers based on lifestyle, interests, and
attitudes. They offer a range of products from electronics and fashion to groceries and home
goods to cater to diverse customer preferences.
4. Behavioral Segmentation: Takealot segments customers based on their purchasing behavior,
such as frequency of purchases, average order value, and product categories they prefer. They
offer personalized recommendations and discounts based on customer behavior.
5. Socioeconomic Segmentation: Takealot also considers customers' socioeconomic status when
targeting them with specific marketing campaigns or products. They offer a range of price points
to cater to customers with different income levels.
2.2 Analyzing the competitive environment of Takealot using Porter's Five Forces framework:
1. Threat of new entrants: The entry of Amazon into the South African market poses a significant
threat to Takealot. Amazon has a strong brand presence and vast resources that could potentially
disrupt the market and challenge Takealot's market share.
2. Bargaining power of suppliers: Takealot's bargaining power with suppliers may decrease as
competitors like Amazon enter the market. Suppliers may have more options and leverage to
negotiate better terms, which could impact Takealot's margins.
3. Bargaining power of buyers: Customers have significant bargaining power in the e-commerce
industry, as they have access to multiple options and can easily switch between platforms.
Takealot needs to focus on customer satisfaction and loyalty to retain their customer base.
4. Threat of substitutes: There are several substitutes in the e-commerce industry, including other
online retailers, brick-and-mortar stores, and marketplace platforms. Takealot needs to
differentiate their offerings and provide unique value propositions to prevent customers from
switching to competitors.
5. Competitive rivalry: The competitive rivalry in the South African e-commerce market is
intensifying, with new players entering the market and existing competitors expanding their
offerings. Takealot needs to constantly innovate, improve their services, and differentiate
themselves to stay ahead of the competition.
2.3 Loyalty marketing strategies to maintain Takealot’s competitive position:
1. Customer loyalty programs: Takealot can implement loyalty programs that offer rewards,
discounts, and exclusive benefits to repeat customers. For example, a points-based system where
customers earn points for every purchase that can be redeemed for discounts or free products.
2. Personalized communication: Takealot can use customer data to personalize communications
and offers based on individual preferences and behavior. Sending targeted promotions and
recommendations can enhance customer loyalty and engagement.
3. Excellent customer service: Providing exceptional customer service, including fast response
times, easy returns, and personalized assistance, can help build trust and loyalty with customers.
Resolving customer issues promptly can turn dissatisfied customers into loyal advocates.
4. Exclusive product offerings: Takealot can offer exclusive products or limited-edition items
that are only available on their platform. This can create a sense of exclusivity and urgency,
encouraging customers to shop on Takealot to access these unique offerings.
5. Community engagement: Takealot can engage with their customers through social media,
forums, and events to build a sense of community and loyalty. By creating a loyal fan base and
brand advocates, Takealot can differentiate themselves from competitors and retain customers in
a competitive market.

Questions 3
1. Economic Factors: The current state of the global economy, including economic trends,
inflation rates, and other financial indicators, can impact Zoom's business operations and
customer base. Adapting to changes in the economy and offering competitive pricing strategies
could help Zoom remain relevant in the market.
2. Technological Factors: The rapid advancement of technology in the communications industry
can pose both opportunities and threats to Zoom. Keeping up with the latest technological trends
and innovations, such as integrating AI and virtual reality into their platform, can help Zoom stay
competitive and meet the evolving needs of customers.
3. Sociocultural Factors: Understanding the cultural preferences and norms of different regions
where Zoom operates can be crucial for adapting their services to diverse customer needs.
Considering factors like language, communication styles, and cultural sensitivities can help
Zoom tailor their messaging and features to a global audience.
4. Political Factors: Keeping abreast of political developments and regulations in various
countries where Zoom operates is essential to mitigate potential risks and ensure compliance.
Adapting to changes in government policies related to communication and data privacy can help
Zoom maintain trust and credibility with customers.
5. Environmental Factors: As sustainability and environmental awareness become increasingly
important in business practices, Zoom can explore ways to reduce their carbon footprint and
promote eco-friendly initiatives. Implementing green technologies and strategies can appeal to
environmentally conscious customers and enhance Zoom's brand reputation.
6. Legal Factors: Adhering to laws and regulations related to data protection, privacy, and
intellectual property rights is crucial for Zoom to avoid legal issues and safeguard customer
information. Staying compliant with changing legal requirements in different countries can help
Zoom build trust and credibility with customers and regulators.