scholarly journals Competitive Advantage Threats and Opportunities in the South African Clothing, Textiles, Leather, and Footwear (CTLF) Industry

2021 ◽  
Vol 10 (6) ◽  
pp. 122
Author(s):  
Sipho Mbatha

Despite the employment and competitive advantage decline experienced in previous years, the South African clothing, textile, leather, and footwear (SACTLF) industry is still a significant contributor to the country’s manufacturing sector. To restore employment figures last seen a decade ago in the industry, the SACTLF has to explore competitive advantage threats and opportunities, among others. To explore competitive advantage threats and opportunities in the SACTLF industry, a leading SACTLF retail group and two leading clothing manufacturers’ associations (representing over 100 CTLF organisations) were purposefully sampled and interviewed. Emerging from the transcripts is that the low rate of innovation and lack of access to manufacturing inputs are the main competitive advantage threats. Strengthening quick-response time and localisation emerged as competitively advantageous opportunities. This article’s findings show that the SACTLF industry has the potential to develop a competitive advantage. The findings of the study contribute new knowledge to the literature.   Received: 27 July 2021 / Accepted: 7 October 2021 / Published: 5 November 2021

2016 ◽  
Vol 9 (3) ◽  
pp. 651-666 ◽  
Author(s):  
Johannes Van der Merwe ◽  
Philippus Cloete ◽  
Herman Van Schalkwyk

This article investigates the competitiveness of the South African wheat industry and compares it to its major trade partners. Since 1997, the wheat-to-bread value chain has been characterised by concentration of ownership and regulation. This led to concerns that the local wheat market is losing international competitiveness. The competitive status of the wheat industry, and its sub-sectors, is determined through the estimation of the relative trade advantage (RTA). The results revealed declining competitiveness of local wheat producers. Compared to the major global wheat producers, such as Argentina, Australia, Brazil, Canada, Germany and the USA, South Africa’s unprocessed wheat industry is uncompetitive. At the same time, South Africa has a competitive advantage in semi-processed wheat, especially wheat flour. The institutional environment enables the importation of raw wheat at lower prices and exports processed wheat flour competitively to the rest of Africa.


2018 ◽  
Vol 18 (1) ◽  
pp. 123-143
Author(s):  
Thomas Habanabakize ◽  
Paul-Francois Muzindutsi

Abstract The manufacturing sector is one of the backbones of the South African economy, and yet is one of the economic sectors facing challenges in job creation. This study analysed the long-run and short-run effects of aggregate expenditure components on job creation in the South African manufacturing sector. A Vector Autoregressive (VAR) with Johansen co-integration approach was used to analyse quarterly data from 1994 to 2015. The findings are that there is a long-run relationship between aggregate expenditure and job creation in the South African manufacturing sector, with government and investment spending being the major components of aggregate expenditure that create jobs in the South African manufacturing sector. Conversely, consumption spending destroys jobs in the manufacturing sector, while net exports have no significant effect on job creation. The short-run relationship between variables was not significant. Recommendations are that more effort should be put into investment spending, and government should spend more on investment than on consumption spending - in order to increase job creation in the manufacturing sector.


2008 ◽  
Vol 8 (1) ◽  
Author(s):  
R. Weeks ◽  
S. Benade

Purpose: The purpose of this paper is to analyse the nature of the South African dual manufacturing and services economy and the impact thereof on organisations from a management perspective. Problem investigated: Services account for over 65% of South Africa's gross domestic product (GDP) and reflects an escalating trend. The manufacturing sector of the economy is just over 26% of GDP. This by implication implies that the South African economy is dualistic in nature. The economy functions as an integrated component of the global economy, one that is highly competitive and turbulent in nature. The traditional management approach tends to be one based on a mechanistic, analytical and deterministic manufacturing perspective that is no longer effective in dealing with the services economy. Methodology: A literature study is undertaken and a narrative enquiry conducted by means of discussions with 24 South African executives to determine the impact of the dual economy on South African organisations and the influence thereof from a management perspective. The approach adopted was intentionally analytical-descriptive in nature. The narrative enquiry constituted open ended but structured discussions with executives in order to learn from their personal experiences in managing an organisation in what is termed to be the dual South African services and manufacturing economy. Findings: An important conclusion drawn from the study is that traditional paradigms of management that evolved within a mechanistic manufacturing economy is no longer effective for dealing with the unpredictable and disruptive changes of a highly competitive global services economy. A complexity theory based management approach it would appear may be more relevant in dealing with the emergent realities associated with a turbulent services economy. Value of the research: Seen within the context of the changing nature of the global and South African economy, the insights gained from the study could assist executives and managers in exploring alternative paradigms of management that would be more appropriate for dealing with the paradoxical nature of a dualistic economy. Conclusion: Appropriate management paradigms differ in terms of contextual realities confronting managers, namely dealing with ordered and un-ordered contextual conditions. The Cynefin Framework (Kurtz & Snowden, 2003) serves as a means of sense making in finding the most appropriate management response for dealing with the contextual realities associated with a dualistic economy.


Author(s):  
Iain S. Macdonald ◽  
Mark Bullen ◽  
Robert Kozak

This study investigated appropriate pedagogical techniques for workplace e-learning programs in the South African wood products (furniture) manufacturing sector. The study found that learners responded favourably to constructivist teaching approaches, such as asynchronous discussions, open-ended task-based activities, and assignments incorporating authentic, real-world examples. Learners viewed constructivist activities to be more useful than quizzes and traditional essay-based assignments, as they allowed new concepts to be learned in context and were perceived to promote deeper understanding of the subject matter. Nevertheless, they valued the inclusion of a blend of pedagogical approaches in the course design, as this enabled them to approach and analyze new concepts in an assortment of ways. Learners placed importance on regular interaction with other learners and course instructors, and were strongly in favour of including face-to-face components in Web-based courses.


2014 ◽  
Vol 7 (2) ◽  
pp. 315-340
Author(s):  
Julia Kupka ◽  
Adele Thomas

Despite the fact that it has existed for over ten years, the Competition Act has had little impact in diluting the dominance of big business in the South African manufacturing sector. This study sought to ascertain the extent of anti-competitive behaviour in two sub-sectors of the South African manufacturing sector and to determine whether the competition authorities should focus on supporting SMEs as competitors to big business. The findings indicated that SMEs in these two sub-sectors face unique difficulties in fighting anti-competitive behaviour, and that there is scope for the competition authorities to facilitate the participation of SMEs in the economy through the use of tools such as market inquiries, the Corporate Leniency Policy and structural remedies.


2013 ◽  
Vol 11 (1) ◽  
pp. 510-517
Author(s):  
Jeevarathnam Parthasarathy Govender

The South African telecommunications market is vibrant and growing, dominated by two players. It is recognised that service quality plays an important role in establishing a competitive advantage. The aim of this paper is to assess ratings of service quality among mobile telecommunications customers. To this end, a survey was conducted among 400 customers using the SERVQUAL questionnaire to measure customers’ expectations and perceptions based on the five dimensions of service quality. The findings indicate that there are gaps between customer expectations and perceptions of service quality. The tangibles dimension exhibited the smallest gap for both companies and the assurance and empathy dimensions revealed the largest gap scores. There were no significant differences in overall expectations between the two companies, but there were significant differences between the companies on overall perceptions of service quality. There was no significant difference in the overall expectations and perceptions between males and females.


2015 ◽  
Vol 8 (1) ◽  
pp. 105-124
Author(s):  
Lenatha Wentzel ◽  
Kerry De Hart

The expansion of the manufacturing sector is one of the South African government’s focus areas for economic growth and employment creation. The research on which this article is based identified additional incentives, applicable to the manufacturing sector, which the South African government could introduce to encourage investors to choose the South African manufacturing sector as a desired investment destination. The incentives provided to manufacturing companies by the governments of Malaysia and Singapore and those provided by the South African government are compared in order to examine the similarities and differences between these incentives. In the light of these findings, recommendations are made for additional incentives in South Africa to promote investment in South African manufacturing companies and reduce some of the barriers that prevent local and foreign investment in the country.


2014 ◽  
Vol 11 (3) ◽  
pp. 253-272 ◽  
Author(s):  
Pravina D. Oodith ◽  
Sanjana Brijball Parumasur

This paper analysed the viability of Prahalad’s Bottom of the Pyramid (BOP) proposition within the South Africa context as a mechanism to eradicate/minimize poverty by ensuring a joint collaborative effort by government, NGOs, large domestic firms, multinational corporations (MNCs) as well as the poverty stricken citizens themselves. It conceptualized the BOP proposition and, having reviewed statistics on the extent of poverty globally and in South African in particular, confirmed that the BOP is a lucrative market in the South African context. From the paper, it is evident that the BOP proposition, if effectively implemented, has the potential to reduce poverty in South Africa and increase the profits of MNCs. It then reviewed Prahalad’s twelve Principles of Innovation and strategically divided these into six differentiation and six low-cost strategies. The paper concludes by articulating creative strategies (based on Prahalad’s 12 principles of innovation) for active participation and competitive advantage at the bottom of the pyramid, which are vividly presented in a model for strategic partners especially multinational corporations (MNCs) to adopt when expanding their scale of operations to incorporate the BOP market.


Author(s):  
Andrew Kerr ◽  
Martin Wittenberg

Abstract The Post-Apartheid Labour Market Series (palms) is a compilation of microdata from 69 household surveys conducted in South Africa. The dataset and the code used to create the data are publicly available from DataFirst, a data repository at the University of Cape Town (www.doi.org/10.25828/gtr1-8r20). To harmonise the data required understanding the differences across the surveys, which has generated new knowledge about the South African labour market.


2021 ◽  
pp. 216-239
Author(s):  
Horman Chitonge

This chapter provides an overview of the agro-processing sector in the South African economy, focusing on the sector’s potential to contribute to inclusive growth through high value-added activities. The chapter shows that agro-processing industries have been the largest subsector of the manufacturing sector in the country since the 1970s, accounting for the largest share of both manufacturing output and employment. Apart from being the largest segment of the manufacturing sector, agro-processing industries have the potential to contribute to the broader national objective of transforming the structure of the economy through the creation of jobs and business opportunities for new small and medium enterprises on both sides of the agro-processing value chains. Employment creation potential lies in the fact that most agro-processing industries are labour intensive. Agro-processing industries, on average, use 40 per cent more labour per unit of capital relative to the manufacturing sector as a whole. However, the challenge is that several of the most labour-intensive agro-processing industries are experiencing declining or stagnating value-added, investment, and, most importantly, employment levels. Consistent and coordinated implementation of strategies which revive dynamism in labour-intensive industries is required to overcome this challenge.


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