helen mba _2 - Nelson Mandela Metropolitan University

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encourage foreign direct investment by foreign firms is partly based on the belief thatthey have access to capital resources that South Africa needs.According to CIMEC (2000:16), examples of foreign investment in the NMMM includeDegussa-Hüls with an investment of R40 million; Corning, who built a R200 millionmanufacturing plant; and Delphi Automotive Systems, who invested R30 million inmanufacturing plants to supply the overseas market. The above-mentioned names areall clients of the intermodal industry in the NMMM (Reid, Intermodal manager,Safmarine, Port Elizabeth, 19 February 2003, Personal Communication).Mattheus (2002:24) reports that the following companies made investments in theNMMM for international trade in 2001- 2002 :• Eberspach invested R10 million;• Bel – Woco secured an investment of R60 million;• Lafarge invested R23 million;• Engelhard invested an estimated R225 million;• VWSA to invest R1.5 billion over the next five years; and• Ford had already invested R431 million in their export programme.3.7.2 Demand conditionsIt was pointed out in Chapter two, section 2.2.2, that demand conditions are the natureof home demand for the industry ‘s product or service. The close proximity ofsophisticated and demanding buyers of intermodal services has pressured the firmsin the industry to meet high standards in terms of delivery/collection of containers, aswell as sufficient capacity to meet the demands in a cost-effective way (Hill,2003:160).The pressure to meet global standards is enforced throughout the value chain, as onecustomer puts pressure on his supplier, who in turn puts pressure on his supplier to96
conform to international standards.The international demand for automotive parts from South Africa comes from theAmericas, Europe and China. The NMMM sophisticated and demanding buyers ofintermodal services, for example Volkswagen South Africa and Delta, helped tostimulate the NMMM intermodal industry to improve service quality and introduceinnovative processes in the industry.3.7.3 Related and supporting industriesThe benefits of investment in advanced factors by related and supporting industriescan spill over into an industry, thereby helping to achieve a competitive position. ThePort Elizabeth Regional Chamber of Commerce and Industry (PERCCI) intends topromote the export of the Province’s products. The domestic industry is alreadyinvolved in several international sourcing agreements, and these agreements willbenefit the intermodal industry in the sense that the exported products need to betransported to the port of Port Elizabeth.Related and supporting industries of the intermodal industry in the NMMM, namelySouth African Port Operations (SAPO), shipping lines, and clearing and forwardingagents, have had an impact on Port Elizabeth-based intermodal companies, whenone considers import/export contracts awarded in the year 2002/2003. The port formsthe connecting link between the shipping service and the inland transport system. Theport of Port Elizabeth is therefore, a point of interface with other modes of transport,such as rail, road and air transport (Fundamentals of Ports Management, 2002).Volkswagen South Africa transported 26 400 containers between the Port Elizabethand Uitenhage in 2002 using their intermodal service provider, Freightdynamics (LeRoux, Regional commercial manager, Freightdynamics, Port Elizabeth, 31 January2003, Personal Communication).He added that Daimler Chrysler in East London transported 20 042 containers in97
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THE IDENTIFICATION OF FACTORS THAT
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ACKNOWLEDGEMENTSI hereby wish to ex
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protection, human resource developm
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2.3.4 Competitive rivalry 372.4 SOU
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4.3.3.1 Section one : Demographics
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Figure 2.1 Porter’s diamond 13Fig
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LIST OF ANNEXURESPAGEAnnexure A Cov
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Mandela Metropolitan Municipality (
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activities at comparable cost but i
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core competences of establishing de
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Firms in every industry have some u
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• A survey was carried out in the
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surprise that the freight transport
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Source: Hill (2002: 159)According t
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attractiveness of a country as a pl
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generalised factor would be a pool
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The second determinant of Porter’
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This is because firms compete globa
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(c)Anticipatory buyer needsA countr
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the service or product buyer needs.
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arely a complete substitute, even i
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firm’s strategy, structure and ri
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Page 58 and 59: cost advantage. Successful cost lea
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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
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Page 84 and 85: also road movements, were performed
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Page 100 and 101: CHAPTER FOURTHE EMPIRICAL STUDY AND
Page 102 and 103: 4.2.2 Types of researchSekaran (200
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Page 114 and 115: Section two dealt with the factors
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Page 128 and 129: • 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
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Page 144 and 145: One of the goals of the National Tr
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• Excellent quality service for e
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CIMEC. 2000. Annual report 1999/200
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Hellriegel, D., Jackson, S.E., Sloc
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Mattheus, B. 2002. Nelson Mandela M
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Strickland, A. & Thompson, A. 1999.
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19 May 2003For Attention:………
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Structured interview on the competi
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Section 2: Factors promoting compet
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Section 3 : Competitive advantagePl
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Section 5: Advantages and challenge
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helen mba _2 - Nelson Mandela Metropolitan University

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