COVER PAGE

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 TABLE OF CONTENTS

TABLE OF CONTENTS.........................................................................................................2

1.0 Introduction....................................................................................................................3

1.1 Generic Strategy........................................................................................................3

1.1.1 Cost Leadership Strategy:..........................................................................................3

1.1.2 Differentiation Strategy:............................................................................................4

1.1.3 Focus Strategy:..........................................................................................................5

1.2 BCG Matrix....................................................................................................................7

1.2.1 Market Growth Rate..................................................................................................7

1.2.2 Relative Market Share...............................................................................................8

1.2.3 Four quadrants of the BCG Matrix:...........................................................................9

1.3 Conclusion.....................................................................................................................10

1.4 Recommendations.........................................................................................................10

REFERENCES.......................................................................................................................11

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1.0 Introduction
Delta Corporation Limited, a leading beverage manufacturer and distributor in Zimbabwe,
can be analyzed in terms of its generic strategy. Delta Corporation has pursued a combination
of generic strategies to maintain its market position and achieve its business objectives. While
the specific strategy may evolve over time, a common approach observed in the beverage
industry is as follows:

1.1 Generic Strategy

1.1.1 Cost Leadership Strategy:

In light of Adeoye, Ajemunigbohun and Okunbanjo (2023) cost leadership strategy is a
business approach in which a company aims to become the lowest-cost producer or provider
of goods or services within its industry. The primary goal of a cost leadership strategy is to
achieve a competitive advantage by offering products or services at lower costs compared to
competitors. This strategy typically targets a broad market and prioritizes operational
efficiency, cost reduction, and economies of scale. Delta Corporation has historically adopted
a cost leadership strategy, aiming to provide its products at competitive prices. By optimizing
its production and distribution processes, Delta strives to reduce costs and achieve economies
of scale. This enables the company to offer its beverages to consumers at affordable prices
while maintaining profitability. Cost leadership allows Delta to capture a broad customer
base, particularly in the mass-market segment, where price sensitivity is high. Here are some
key characteristics and considerations of a cost leadership strategy

Operational Efficiency: Delta focuses on optimizing its operations to achieve cost

efficiencies. It invests in modern manufacturing facilities, supply chain management systems,
and distribution networks to streamline processes and reduce costs. By improving
productivity and eliminating waste, Delta aims to lower its production and operational
expenses (Emam, 2019).

Economies of Scale: As a market leader in Zimbabwe's beverage industry, Delta benefits

from economies of scale. The company produces and distributes a wide range of beverages,
including beers, soft drinks, and non-alcoholic beverages, in large volumes. This enables
Delta to spread its fixed costs over a significant output, reducing the average cost per unit and
improving its cost competitiveness (Dressler, 2023).

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Supplier Relationships: Delta leverages its strong position in the market to negotiate
favourable agreements with suppliers. By securing cost-effective raw materials, packaging
materials, and other inputs, Delta can control its production costs and maintain a competitive
edge in pricing.

Cost Control Measures: Delta implements rigorous cost control measures throughout its
operations. It continuously monitors and manages expenses related to production,
distribution, marketing, and administration. By identifying areas of potential cost reduction
and implementing efficient cost management practices, Delta aims to minimize operating
expenses and improve profitability (Emam, 2019).

Value Engineering: Delta engages in value engineering to optimize its product offerings.
This involves assessing the cost-effectiveness of product features and functionalities while
ensuring they meet customer expectations. By focusing on cost-efficient product design and
development, Delta can reduce manufacturing costs without compromising quality or
customer satisfaction.

Pricing Strategy: Delta's cost leadership strategy is reflected in its pricing approach. The
company strives to offer its beverages at competitive prices, catering to price-sensitive
consumers in the market. By delivering value for money through affordable pricing, Delta
aims to attract a broad customer base and maintain its market share (Dressler, 2023).

1.1.2 Differentiation Strategy:

In addition to cost leadership, Delta has also pursued a differentiation strategy to set itself
apart from competitors. According to Allal-Chérif, Climent and Berenguer (2023)
differentiation strategy is a business approach in which a company seeks to create a unique
and distinctive position for its products or services in the market. By emphasizing unique
features, attributes, or value propositions, the company aims to stand out from competitors
and create a competitive advantage. The differentiation strategy focuses on creating perceived
value among customers that goes beyond price considerations (Collins, 2021). The company
has developed a diverse portfolio of beverages, including beers, soft drinks, and non-
alcoholic beverages, catering to various consumer preferences and needs. Delta emphasizes
product quality, branding, and marketing to differentiate its offerings from competitors in the
market. Here are some key characteristics and considerations of a differentiation strategy:

Diverse Product Portfolio: Delta offers a diverse range of beverages, including beers, soft
drinks, and non-alcoholic beverages. By providing a wide selection of products, Delta caters

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to different consumer preferences and needs. This product diversification allows Delta to
differentiate itself in the market and capture a broader customer base (Schönwälder & Weber,
2023).

Product Quality: Delta places a strong emphasis on product quality. The company ensures
that its beverages meet or exceed industry standards and consumer expectations. Delta invests
in quality control measures, manufacturing processes, and sourcing high-quality ingredients.
By delivering superior product quality, Delta aims to differentiate its offerings and build
customer trust and loyalty (Adeoye, et al., 2023).

Branding and Marketing: Delta focuses on building strong brands and effective marketing
strategies. The company invests in brand development, advertising, and promotional
activities to create brand awareness and communicate the unique value proposition of its
products. Effective branding and marketing efforts help differentiate Delta's beverages from
competitors and influence customer perceptions.

Innovation and New Product Development: Delta actively engages in innovation and new
product development initiatives. The company continuously explores new flavors, packaging
formats, and beverage variations to meet evolving consumer preferences (Firoz Suleman, et
al., 2019). By introducing innovative and differentiated products to the market, Delta aims to
attract customers seeking novel and unique experiences.

Customer Experience: Delta prioritizes delivering a positive customer experience. This

includes factors such as responsive customer service, engaging packaging design, and
convenient product availability. By focusing on the overall customer experience, Delta aims
to differentiate itself from competitors and create a positive impression in the minds of
consumers.

Targeted Market Segments: Delta tailors its products and marketing efforts to target
specific market segments. For example, the company may focus on premium or craft beer
offerings to cater to consumers with discerning tastes and higher disposable incomes. By
understanding and meeting the unique needs of different customer segments, Delta can
differentiate its products and establish a strong market position.

1.1.3 Focus Strategy:

According to Sauqi (2021) a focus strategy is a business approach in which a company
concentrates its efforts on serving a specific market segment, niche, or customer group within

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a broader market. Instead of targeting the entire market, the company tailors its products,
services, and marketing efforts to meet the unique needs and preferences of the chosen focus
area. The focus strategy allows a company to differentiate itself and create a competitive
advantage by serving a particular segment exceptionally well (Firoz Suleman, Rashidirad, &
Firoz Suleman, 2019). Delta Corporation has also employed a focus strategy to target specific
market segments within the beverage industry. By tailoring its products and marketing efforts
to meet the unique demands of different consumer groups, Delta aims to establish a strong
presence and build customer loyalty (Emam, 2019). For example, Delta may focus on
premium and craft beer offerings to cater to the discerning tastes of a specific group of
consumers, allowing it to capture higher margins and create a niche market position. Here are
some key characteristics and considerations of a focus strategy

Geographic Focus: Delta focuses on the domestic market in Zimbabwe. By concentrating its
efforts on the local market, Delta can better understand and cater to the specific needs and
preferences of Zimbabwean consumers. This allows the company to develop products and
marketing strategies that are tailored to the local market, giving it a competitive advantage
over multinational competitors that may have a broader regional or global focus.

Product Focus: Delta specializes in the production and distribution of beverages, including
beers, soft drinks, and non-alcoholic beverages. By concentrating on the beverage sector,
Delta can develop expertise and capabilities specific to this industry. This specialization
enables the company to create products that meet the unique requirements and tastes of its
target customers (Janiah, 2019).

Customer Segmentation: Delta segments its customer base and tailors its products and
marketing efforts to specific customer groups. For example, the company may target different
segments such as young adults, beer enthusiasts, or health-conscious individuals with
specialized products or marketing campaigns. By understanding the distinct needs and
preferences of each segment, Delta can effectively capture market share and build customer
loyalty within its chosen focus areas (Dressler, 2023).

Brand Positioning: Delta positions its brands strategically to cater to specific market niches.
For instance, the company may position one of its beer brands as a premium offering targeted
at consumers seeking a higher-end experience, while another brand may be positioned as an
affordable option for price-sensitive customers. By carefully positioning its brands, Delta can
differentiate itself within the focus segments and appeal to the desired customer groups.

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Distribution Channel Focus: Delta pays attention to the distribution channels that are most
effective for reaching its target customers. This may involve focusing on specific retail
outlets, bars, restaurants, or channels preferred by the target market. By concentrating its
distribution efforts on the channels that have the greatest impact within its focus segments,
Delta can efficiently reach its target customers and maximize sales opportunities (Sauqi,
2021).

It's important to note that the specific generic strategy employed by Delta Corporation may
vary based on market conditions, competitive landscape, and evolving consumer preferences.
The company's strategic approach may also include elements of hybrid strategies, combining
aspects of cost leadership and differentiation to gain a competitive advantage.

1.2 BCG Matrix

The BCG Matrix, also known as the Boston Consulting Group Matrix, is a strategic tool used
to analyze and evaluate a company's portfolio of products or business units based on their
market growth rate and relative market share (Janiah, 2019). The BCG Matrix categorizes
products or business units into four quadrants based on two dimensions:

1.2.1 Market Growth Rate

This dimension represents the growth rate of the market in which a product operates. It
reflects the attractiveness and opportunities available in that particular market. The market
growth rate can be high, medium, or low. Market Growth Rate refers to the rate at which a
specific market or industry is growing over a given period of time (Tien, 2022). It measures
the percentage increase in the total market size or market demand for a particular product or
service (Sauqi, 2021).

Market growth rate is an important metric for businesses and investors as it provides insights
into the attractiveness and potential opportunities within a market (Chiu & Lin, 2020).
Understanding the market growth rate helps companies make informed decisions regarding
resource allocation, investment strategies, and product development. It allows businesses to
identify high-growth markets where they can focus their efforts to maximize revenue and
profitability (Janiah, 2019).

Market growth rate can be calculated using the following formula:

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Market Growth Rate = (Current Market Size - Previous Market Size) / Previous Market Size
* 100

This formula compares the difference in market size between two periods (current and
previous) and expresses it as a percentage of the previous market size (Tien, 2022). The result
represents the growth rate of the market over that time period. For example, if the market size
for a specific product was $100 million in the previous year and it increased to $120 million
in the current year, the market growth rate would be calculated as follows:

Market Growth Rate = ($120 million - $100 million) / $100 million * 100 = 20%

In this example, the market growth rate is 20%, indicating a 20% increase in the market size
from the previous year.

It's important to note that market growth rate calculations may vary depending on the specific
context and data available. In some cases, more sophisticated methods such as compound
annual growth rate (CAGR) are used to account for growth over multiple years and smooth
out fluctuations in market size.

1.2.2 Relative Market Share

This dimension compares a product's market share to that of its largest competitor
(Redelman-Sidi, 2020). It provides an indication of a product's competitive strength and
market dominance. Relative market share can be high, medium, or low. Relative Market
Share is important because it helps assess a company's competitive advantage and its ability
to capture a significant portion of the market compared to its rivals (Janiah, 2019). It provides
an indication of the company's market dominance and can be used to evaluate its performance
against competitors. A higher relative market share implies a stronger competitive position
and the potential for greater influence over market dynamics.

Relative Market Share is typically calculated using the following formula:

Relative Market Share = Company's Market Share / Largest Competitor's Market

Share

The company's market share is divided by the market share of its largest competitor. The
result represents the relative market share of the company compared to its biggest competitor.
This calculation assumes that the largest competitor has the highest market share in the

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industry. For example, if a company has a market share of 25% and its largest competitor has
a market share of 40%, the relative market share would be calculated as follows:

Relative Market Share = 25% / 40% = 0.625

In this example, the company's relative market share is 0.625, indicating that it holds
approximately 62.5% of the market share of its largest competitor.

It's important to note that relative market share calculations may vary depending on the
specific context and the number of competitors being considered (Tien, 2022). Additionally,
relative market share should be analyzed in conjunction with other factors such as market
growth rate and industry dynamics to gain a comprehensive understanding of a company's
market position.

1.2.3 Four quadrants of the BCG Matrix:

Stars: In this quadrant, we would expect to find Delta's products with high market growth
rates and a high relative market share. These products would represent Delta's most
successful and promising offerings. For example, Delta's premium beer brand with a large
market share in a rapidly growing craft beer market could be considered a star. These
products require continued investment to maintain their growth trajectory and market
dominance.

Cash Cows: Cash cows are products that have a high relative market share but operate in a
low-growth market. These products generate significant cash flow and profit due to their
strong market position. For Delta, a well-established and widely consumed mass-market beer
brand with a dominant market share could be classified as a cash cow. While the market
growth may be slower, these products provide steady revenue and require fewer investments
to maintain their position.

Question Marks: Question marks, or problem children, are products with a low relative
market share but operate in a high-growth market. These products have the potential for
future growth but require significant investments to increase their market share. For Delta, a
newly introduced non-alcoholic beverage targeting health-conscious consumers could be
considered a question mark. Delta would need to assess the potential for growth and
determine whether additional investments are warranted.

Dogs: Dogs represent products with a low relative market share and operate in a low-growth
market. These products may struggle to generate substantial profits and may have limited

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growth potential. For Delta, a low-selling or niche alcoholic beverage brand in a stagnant
market segment could be classified as a dog. Delta would need to evaluate whether it makes
strategic sense to continue investing in these products or consider phasing them out.

Applying the BCG Matrix to analyze Delta in Zimbabwe would require specific information
on Delta's portfolio of products or business units, their market growth rates, and relative
market shares. By categorizing Delta's products into the four quadrants of the BCG Matrix, it
would be possible to identify strategic implications and make informed decisions regarding
resource allocation, investment priorities, and product portfolio management.

1.3 Conclusion
It's important for Delta Corporation Limited to regularly assess the market dynamics,
consumer preferences, and competitive landscape in Zimbabwe's beverage industry. By
staying agile and adaptable, Delta can adjust its focus strategy as needed to remain relevant,
competitive, and responsive to the evolving market conditions.

1.4 Recommendations
Focus Strategy: Delta can benefit from implementing a focus strategy by concentrating its
efforts on specific market segments, niches, or customer groups within the beverage industry
in Zimbabwe. This can enable the company to better understand and meet the unique needs
and preferences of its target customers, differentiate itself from competitors, and build
stronger customer relationships.

Geographic Focus: Delta's focus on the domestic market in Zimbabwe has proven to be a
successful strategy. To maintain this focus, the company should continue to invest in market
research and consumer insights to stay updated on evolving customer preferences, market
trends, and competitive forces within the local beverage industry.

Product Focus: Delta should continue to specialize in the production and distribution of
beverages, including beers, soft drinks, and non-alcoholic beverages. The company can
leverage its expertise and capabilities within the beverage sector to develop innovative and
tailored products that resonate with the specific target segments it aims to serve.

Customer Segmentation: Delta should further refine its customer segmentation strategy to
identify and target specific customer groups within the Zimbabwean market. By

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understanding the distinct needs and preferences of these segments, the company can develop
targeted marketing campaigns, product offerings, and customer experiences that effectively
cater to each group's requirements.

Brand Positioning: Delta should focus on strategically positioning its brands to differentiate
itself within the market. This can involve emphasizing unique selling points, leveraging the
reputation and heritage of its brands, and creating a strong brand identity that resonates with
the target customers. Clear and consistent brand positioning will help Delta build brand
loyalty and maintain a competitive advantage.

Distribution Channel Focus: Delta should analyze and optimize its distribution channels to
ensure efficient and effective reach to its target customers. By identifying the most impactful
channels preferred by its focus segments, the company can allocate resources accordingly,
strengthen relationships with key distribution partners, and enhance its overall distribution
strategy.

Continuous Improvement: Delta should embrace a culture of continuous improvement

across its operations. By continuously seeking opportunities to optimize processes, reduce
costs, and enhance operational efficiency, the company can maintain its cost leadership and
improve its competitive position. This can include investments in technology, automation,
supply chain optimization, and ongoing evaluation of cost-saving initiatives.

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