helen mba _2 - Nelson Mandela Metropolitan University

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Mandela Metropolitan Municipality (NMMM), with smaller operators serving thebalance of the market.At least half of the market is served by government. However, now that the market isopen to private enterprise, overcapacity is experienced, with pressure to reduce costsas a result.The objective was to encourage healthy competition among multiple firms. In manyindustries such as banking, agriculture, insurance, construction, airlines, railways,trucking and utilities, new regulations prohibited monopolies. Over the years, asantitrust legislation made monopolies less viable, more industries becamecompetitive. Consequently, the monopolistic way of viewing competition became lessuseful for understanding competitive industry structures (Shrivastava, 1994:46).For the first time now, clients have a choice between service providers. In the past,government had a monopoly in the intermodal transport market, and clients had nochoice other than using the low quality, high priced service offered, but nowgovernment needs to compete in a changing environment, where the playing fieldsare equal and competition is tough. This calls for better pricing and improved service.(Hill, 1998).The purpose of this study is to identify the factors that contribute to a competitiveadvantage in the intermodal transport industry, with particular focus on the NelsonMandela Metropolitan Municipality (NMMM).1.2 MAIN PROBLEM AND SUB-PROBLEMSThe main problem to be researched in this project was as follows:16
‘Which factors contribute to a competitive advantage in intermodalism in theNelson Mandela Metropolitan Municipality?”The main problem can be expressed in terms of three sub-problems:• Which strategic bases of competitive advantage are described in the literaturethat can be applied to the intermodal transport industry in the Nelson MandelaMetropolitan Municipality?• Which strategic bases of competitive advantage are currently employed by theintermodal transport industry to achieve a competitive advantage in the NelsonMandela Metropolitan Municipality?• How can the results obtained from the resolution of the two sub-problemsabove be integrated into addressing the main problem?1.3 DEFINITION OF KEY TERMSThe purpose in defining the key concepts is to acquaint the reader with the terms andconcepts used in the research.1.3.1 Competitive advantageAccording to Heizer and Render (1999:36), competitive advantage implies thecreation of a system that has a unique advantage over competitors. The idea is tocreate customer value in an efficient and sustainable way.Porter (1986:20) views competitive advantage as a function of either providingcomparable buyer value more efficiently than competitors (low cost), or performing17
Page 1 and 2: THE IDENTIFICATION OF FACTORS THAT
Page 3 and 4: ACKNOWLEDGEMENTSI hereby wish to ex
Page 5 and 6: protection, human resource developm
Page 7 and 8: 2.3.4 Competitive rivalry 372.4 SOU
Page 9 and 10: 4.3.3.1 Section one : Demographics
Page 11 and 12: Figure 2.1 Porter’s diamond 13Fig
Page 14 and 15: LIST OF ANNEXURESPAGEAnnexure A Cov
Page 18 and 19: activities at comparable cost but i
Page 20 and 21: core competences of establishing de
Page 22 and 23: Firms in every industry have some u
Page 24 and 25: • A survey was carried out in the
Page 26 and 27: surprise that the freight transport
Page 28 and 29: Source: Hill (2002: 159)According t
Page 30 and 31: attractiveness of a country as a pl
Page 32 and 33: generalised factor would be a pool
Page 34 and 35: The second determinant of Porter’
Page 36 and 37: This is because firms compete globa
Page 38 and 39: (c)Anticipatory buyer needsA countr
Page 40 and 41: the service or product buyer needs.
Page 42 and 43: arely a complete substitute, even i
Page 44 and 45: firm’s strategy, structure and ri
Page 46 and 47: Porter (1990:117) says domestic riv
Page 48 and 49: means of identifying the forces whi
Page 50 and 51: ased economies, and their trade pol
Page 52 and 53: transport, it is frequently economi
Page 54 and 55: for the purpose of this study.Figur
Page 56 and 57: According to Strickland and Thompso
Page 58 and 59: cost advantage. Successful cost lea
Page 60 and 61: 2.5.4 Shifting input costs or avail
Page 62 and 63: eduction is regarded as essential t
Page 64 and 65: Organisations that move fastest dow
Page 66 and 67:
and Strebel and Porter has, however
Page 68 and 69:
options available to organisations.
Page 70 and 71:
2.7.1.2 The hybrid strategy - route
Page 72 and 73:
Source : Slack et al (2001 :116)The
Page 74 and 75:
• Marketing-based approaches: Her
Page 76 and 77:
difficult if the organisation compe
Page 78 and 79:
For an efficient multimodal system,
Page 80 and 81:
good for all. It is anti-congestion
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to another while in transit from or
Page 84 and 85:
also road movements, were performed
Page 86 and 87:
insurance rates for all parties.•
Page 88 and 89:
distributed to everyone involved or
Page 90 and 91:
subject to the same terms and condi
Page 92 and 93:
TEU's handled at the Port of Port E
Page 94 and 95:
as many other long term transport a
Page 96 and 97:
encourage foreign direct investment
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2002.The estimated volume of contai
Page 100 and 101:
CHAPTER FOURTHE EMPIRICAL STUDY AND
Page 102 and 103:
4.2.2 Types of researchSekaran (200
Page 104 and 105:
In evaluating the questions asked,
Page 106 and 107:
Leedy (1997:191) states that a comm
Page 108 and 109:
The researcher was of the opinion t
Page 110 and 111:
monetary value to the intermodal tr
Page 112 and 113:
The size of customers, proximity of
Page 114 and 115:
Section two dealt with the factors
Page 116 and 117:
The South African intermodal indust
Page 118 and 119:
From Table 4.10, the following inte
Page 120 and 121:
• Ninety one percent of the respo
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• One hundred percent support was
Page 124 and 125:
Investment cost in the intermodal i
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espondents shows that favourable tr
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• Eighty two percent of responden
Page 130 and 131:
5.3 CONCLUSIONS AND RECOMMENDATIONS
Page 132 and 133:
solutions.• The shipping lines ne
Page 134 and 135:
the intermodal industry, have led t
Page 136 and 137:
understand and to deliver enhanced
Page 138 and 139:
prices or a better service from an
Page 140 and 141:
adequate skills, especially in fund
Page 142 and 143:
transporter should have in creating
Page 144 and 145:
One of the goals of the National Tr
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• Excellent quality service for e
Page 148 and 149:
CIMEC. 2000. Annual report 1999/200
Page 150 and 151:
Hellriegel, D., Jackson, S.E., Sloc
Page 152 and 153:
Mattheus, B. 2002. Nelson Mandela M
Page 154 and 155:
Strickland, A. & Thompson, A. 1999.
Page 156 and 157:
19 May 2003For Attention:………
Page 158 and 159:
Structured interview on the competi
Page 160 and 161:
Section 2: Factors promoting compet
Page 162 and 163:
Section 3 : Competitive advantagePl
Page 164 and 165:
Section 5: Advantages and challenge
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