BEE Partner, South Africa Economy Watch

One of the major problems facing strategic thinkers is the whole issue of competitive advantage. According to strategy guru Richard D’Aveni, in most industries the days of permanent competitive advantages are long gone, because of the nature of what he calls `hypercompetition’.² D’Aveni contends that the best one can hope for is an ongoing series of temporary advantages, and that that is wh_atstrategists should be aiming at. This has led many organisations to move from seeking immediate competitive advantage to the development of long-term relationships with customers in the belief that opportunities for the creation of advantage will arise within the relationship. Allied to this is the belief that customers are company assets that need nurturing, rather than income sources that are there to be exploited. Also, more organisations are beginning to place greater value on customer advocates than on powerful management teams. In terms of customer loyalty, greater emphasis is being placed on moving customers up the loyalty ladder, until they becom_e advocates of the company and its products.’ Read the rest of this entry »

In each of the customer segments mentioned above, the ‘product’ has to be right so that the customer has a great experience of the country relative to the experience that can be gained elsewhere. For example, tourists not only want to enjoy the natural beauty and amenities of our country, but want to know that they will not be mugged on Durban’s beachfront, or attacked in their hotels in Johannesburg. They will also expect to be treated properly by customs officials at the various points of entry and exit. Should they embark on a tour of the country, they should feel confident that their lives would not be at risk owing to unscrupulous tour companies who put unroadworthy vehicles driven by inexperienced drivers on the road. Read the rest of this entry »