ASSESSMENT ITEM 2: DESCRIPTION – Shoprite Holdings Limited: challenges to success (Case Study
can be found in Learn JCU)
This case is about Africa’s largest supermarket store which was founded in 1979. The vision of Shoprite
Holdings Limited (SHL) has been to offer the lowest prices for groceries. In just over 41 years the
company came to be recognised as Africa’s largest grocery retailer. It has more than 2,800 stores in 15
countries across Africa with the support of over 141,000 staff.
You have been appointed to conduct a strategic capability analysis of SHL. This case is designed to help
students to:
1. Understand what resources and capabilities are and the fundamentals of competitive advantage,
through an analysis based on the VRIO framework and appraise the sustainability of competitive
advantages based on this analysis.
2. Able to appraise the value chain of SHL and identify all primary activities (i.e. inbound logistics,
operations, outbound logistics, marketing and sales and service) and support activities.
3. Analyse areas with only temporary advantages and where SHL need to develop further capabilities and, if
so, in which areas/functions.
Instructions/ Format
1. SHL’s resources and capabilities (4 pages)
Distinguish between SHL’s resources and capabilities and provide an overview what are they. To that end,
the VRIO framework can be used as an effective tool. Explain how SHL can sustain the resources and
capabilities where the company has competitive advantages.
2. The value chain of SHL (4 pages)
Students should provide SHL’s value chain, covering all primary activities and support activities of its
operations. Identify which area(s) of the value chain create the value-surplus for SHL. Overall, student
should also discuss possible ways for improvement in areas where SHL only has temporary advantages or
is at par with competitors.
3. The future of SHL’s competitiveness (2 pages)
Explain how SHL can sustain the resources and capabilities where the company has competitive
advantages. Can Shoprite’s focus on the nine drivers for their strategy help them achieve the goal of
continued growth whilst honouring their promises to customers as the sector faces an uncertain future?
