Measuring market orientation of Muscle Pharm Corp. (MSLP:US) British American Tobacco South Africa | Page 14
British American Tobacco South Africa: Evaluating the role and substance of its strategy in achieving sustainable competitive advantage
4.
Recommendations for strategic future of enterprise
Based on the strategic pillars and to support new growth for BATSA – I have following
recommendations:
Expansion of Heidelberg: Having a market share of more than 80%, considering the display
and marketing bans, further market penetration should not be considered. However, due to the
success of the Heidelberg factory BATSA should invest in its current operation in order to
increase sales, marketing and distribution and last but not least, create supply for export
markets within Africa (Uganda, Kenya, Zimbabwe and Nigeria). This may lead to the realisation
of the plant becoming a new hub for producing the next generation products for Africa.
Gain leadership of the non-flammable space within the industry: As rising health issues
forcing BAT to innovate in non-flammable products, BATSA should follow the trend that is
occurring in Europe and the US and starting to market the e-cigarette that can generate higher
profit margins than the traditional business.
Addressing the threat of illicit trade through key product traits and strong brands:
BATSA should partner even more closely with governments and law enforcement agencies to
minimize illegal tobacco trade. Other organisations such as Interpol and the FBI might also
support the issues since they have found out that among some cases in illegal tobacco trading,
are linked to money laundering, drugs, human trafficking and fund terrorist activites (BATSA,
2013)
Innovation: Creating new growth through introduction of new innovative products
outside of Africa but also within South Africa: Growing segments BATSA should consider
are additive free products and capsules.