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There are five main suppliers of electrical accessories in the South African Market.

Powertech ltd established in 1978, the company is the leader in distribution of electrical and electronic
accessories in the South African country.

Alstom Ltd is actually leading the South Africa because it’s a diversified company that is not dealing in
electronics and electrical sector. They offer others articles such as train, buses that increase their market
share.

Eii Ltd established in the country in 1999, it is a company that supplies electrical accessories and specially
Transformer for Medium and High Voltage.

Hawker Siddeley ltd is a distributor of power and distribution transformers. They are more in the
industrial sector and specialized themselves mostly in the power sector.

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The South African economy expanded an annualized 2.0 percent on quarter in the
three months to September of 2017, easing from an upwardly revised 2.8 percent
expansion in the previous quarter but beating market expectations of a 1.5
percent rise. Agriculture, mining and manufacturing were the main drivers of the
growth, while there was a contraction in general government services resulting
from low employment numbers in the public sector. GDP Growth Rate in South
Africa averaged 2.83 percent from 1993 until 2017, reaching an all time high of
7.60 percent in the fourth quarter of 1994 and a record low of -6.10 percent in the
first quarter of 2009.

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Appendix

Total Hardware shop in Mauritius .

According to Yelo.mu. There are a total of 510 hardware shop in Mauritius .

ELL occupied on 275 hardware shop in the island and refer to below for segmenting areas / hardware shop
occupied by ELL.

Beau
Curepip Port Louis
Bassin
e 140 20
5

Triolet
Q-bornes Mauritiu
11
80 s

Goodland Flacq Mahebour Vacoas

s 5 g Phoenix
5 4 5

Above are number of hardware shop occupied by ELL. According to the actual total of 510, it seems that
ELL has a good part of the market.

To promote its brand ELL has been able to convince some of those Hardware owners to paint their
Hardware shop with color and Logo of Legrand as illustrated under:

To attach a photo

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Appendix

Mauritius Gdp From

Construction (https://tradingeconomics.com/mauritius/gdp-from-
construction)

Gdp From Construction in Mauritius decreased to 2724 MUR million in the first
quarter of 2017 from 3001 MUR million in the fourth quarter of 2016. Gdp
From Construction in Mauritius averaged 3204.39 MUR million from 2007
until 2017, reaching an all time high of 4257 MUR million in the fourth
quarter of 2011 and a record low of 2509 MUR million in the second quarter
of 2016.

Mauritius GDP Last Previous Highest Lowest Unit

GDP Growth Rate 0.20 1.10 6.10 -1.70 percent [+]

GDP Annual Growth Rate 3.70 4.50 9.80 -0.80 percent [+]

GDP Constant Prices 113515.00 113404.00 118601.00 24867.40 MUR Million [+]

Gross Fixed Capital 21314.00 18902.00 23500.00 5487.20 MUR Million [+]
Formation

Gdp From Construction 2724.00 3001.00 4257.00 2509.00 MUR million [+]

Gdp From Manufacturing 7873.00 13112.00 13112.00 6558.00 MUR million [+]

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Mauritius GDP Last Previous Highest Lowest Unit

Gdp From Mining 107.00 153.00 233.00 104.00 MUR million [+]

Gdp From Transport 4983.00 5698.00 5698.00 3397.00 MUR million [+]

Gdp From Utilities 1041.00 1004.00 1062.00 540.00 MUR million [+]

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2.1.5.5 – Macro Environment of S.A
An environmental analysis has been conducted with the help of PESTEL to see what are the opportunities
that ELL can get if they enter the market. PESTEL is a powerful tools used by companies to track the
environment they are going to operate in or are planning to Launch new products and services, refer to Fig
C for pestel analysis on South Africa country.
Fig C PESTEL analysis for S.A (Macro Environment)
Political: Jacob Zuma resigned from presidency
 Election every 5 years
 Since 1990, the African National Congress
(ANC) has dominated S.A politics.
 The constitution’s bill of rights provide
extensive guarantees including: Equality
before law. Prohibition against
discrimination.
Social: Population Growth 2.1% per year.
 Pace to reform is too slow
 Population 44million.
 Type: White Coloured, Indian, Asian.
 There are national languages in S.A
 Poverty is the highest among the black
population.
Environment: Growth in water usage is more than
supply.
 Air pollution from acid rains
 Soil Erosion
 Disertification
Natural Resources
2.1.6 – Micro Environment of S.A
2.1.6.1 – Porter’s Five forces
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Economic: Deaprture of Jacob Zuma encouraged
international investors.
 GDP growth was 2.83% in 2017.
 Economic Growth too limited.
 S.A was found to have the second most
sophisticated financial market and the
second lowest effective business tax rate.
Technology: Being rich in coal, S.A has some coal
fired PowerStation in the world.
 Government give lot of efforts to
encourage entrepreneurship in
biotechnology, information technology,
electrical field, not many notable
groundbreaking companies have been
founded in the country.
 There are 150 internet providers thus
there is internet access everywhere.
 In rural areas of S.A telecommunications
are limited and quite costly
Legal: S.A has a hybrid and mixed legal system
 Anti dumping measures
 Elimination of import/export duties
 Non tariff barriers
 Quantitative import / export restrictions
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Poter’s Five forces Analysis is a mode used by companies for industry analysis and corporate strategy
development. The five forces are competition, supplier strength, customer power and the potential of
new companies joining the industry and the threat of substitute products.

Porter’s Five Forces (Micro Environment)

Bargaining power of suppliers- not applicable Threat of substitutes – Medium

Bargaining power of customers – High
Products differentiation – Medium
Buyers use of multiple electrical supplier – Medium
Number of B2B & B2C buyers – High
Relative Price of substitute – High
Relative Quality of substitute – High
Switching cost to buyers - Medium
Rivalry among electrical suppliers – Medium
Four major players in the electrical sector (Refer to
appendix…)
Product differentiation – Medium
Buyers Switching Cost – Medium
Diversity of Competitors - Low

Threats of new entrants – Medium

Economies of Scale – High
Product differentiation – Medium
Switching cost to buyers – Low
Government Policy on Electrical accessories and distributors –
Medium
Barriers to Entry – Medium (African Government encouraging
investment)

2.1.6.2 – Strategic Choice

ELL is positioned as a follower in the Mauritius market, to achieve Global growth ELL think differently to
become market challenger.

Figure … proposed competitive positioning

When entering a new market, the company should focus on being a challenger. A challenger mean think
and work differently to create uniqueness that will attract customers.

2.1.6.3 – Differentiation Strategy

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As discussed in the marketing Audit Fig 7.0, ELL is stuck between Differentiation, cost leadership and Focus.
To be able to compete in S.A market it should now focus on Differentiation strategy.

Proposed competitive strategy

The differentiation strategy will help ELL to position its brand in the market without fierce of entering a
price war strategies with the competitors.

2.1.6.4 – Value Chain

Purpose of using the value chain concept is to highlight the activities which can add value to gain
sustainable competitive advantages. Relationship marketing is advised to use to enhance relationship with
involving stakeholders.

SAP ERP (Enterprise resource programme) system links these activities together for robust functionality
and improves communication. The figure shows how value is added in each function to achieve margin of
30%.

Firm Infrastructure – support systems, functions like finance, legal, planning, administration

Human Resource management – Recruitment, career development and compensation of employees

Technology development – no applicable actually for S.A

Procurement – purchasing directly from Legrand France and other brand suppliers that ELL actually represent.

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Inbound Logistics

Receiving,
warehousing

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