Measuring market orientation of Muscle Pharm Corp. (MSLP:US) British American Tobacco South Africa | Page 15

British American Tobacco South Africa: Evaluating the role and substance of its strategy in achieving sustainable competitive advantage

5.

Conclusion

British American tobacco group is running a transnational strategy which means to building a strong
international reputation for high quality tobacco brands (GDB’s) to meet the consumer’s needs that vary
from location to location and aims to achieve location economies of scale and exploit experience curve
effects (BAT, 2013). BAT South Africa owns an exclusive position within the global tobacco group by
controlling the majority of the supply chain or tobacco value creation channel. Not only is it one of the
company’s largest profit centers, with an impressive domestic market share of more than 85%, it is also
confirms an example of successful cultural and structural advancement, resulting in the emergence of a
world class manufacturing operation. The management of BATSA demonstrated the ability to deliver
growth despite a challenging external environment and was able to transform the massive South African
Heidelberg cigarette facility from a poor performing operation based on manual labour to a highly
computerized and high achieving ultramodern factory (Sutton, 2013).

In addition the chosen strategy by BATSA elevated working procedures, processes and attitudes in a
way so that Heidelberg became a typical exemplar of British American Tobaccos unique corporate
culture (Sutton, 2013). The tobacco business still generates a large portion of revenues for
governments. Both BATSA and governments are also jointly breaking down on illicit trade in order to
collect cigarette taxes and spur sales. Indeed, social and political change may prove to be tobacco’s
fiercest threat. Backed by the Bloomberg and Gates foundations and in conjunction with the World
Health Organization’s Framework Convention on Tobacco Control, well-funded international efforts to
ban smoking in public places and increase awareness of its health risks are growing exponentially which
might also affect BATSA (De Hovanesian, 2010).