FORMATIVE ASSESSMENT

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Read the case study below and answer all the questions that follow

Wimpy in South Africa

Wimpy, a British brand, made its entry into the South African market as part of the Famous Brands Limited group. Initially,

Wimpy started as a traditional diner

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style eatery that catered to local tastes and preferences. However, over time, the brand

transformed into a modern fast

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food chain, adapting to the changing demands and trends of consumers. This strategic

evolution allowed Wimpy to establish itself as a trusted brand known for its quality offerings and family

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friendly atmosphere.

By keeping up with market dynamics and consumer preferences, Wimpy has successfully built a loyal customer base

across South Africa. It has become a leading fast

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food chain, specializing in hamburgers, breakfast items, and other fastfood

options. Wimpy's success can be attributed to its focus on quality, affordability, and customer satisfaction.

One of the major challenges Wimpy faced was establishing a unique market position in a highly competitive fast

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food

industry. To overcome this challenge, the company needed to differentiate itself from existing players and create a strong

brand identity that would attract and retain customers. Wimpy achieved this by positioning itself as a family

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friendly

restaurant with a diverse menu that caters to various tastes and preferences. To effectively position itself in the market,

Wimpy conducted thorough market research to understand consumer needs and preferences. The company then tailored

its menu, pricing, and marketing strategies to appeal to its target audience. By emphasizing its commitment to quality and

affordability, Wimpy successfully carved out a distinct position in the South African fast

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food landscape.

A key factor contributing to Wimpy's success is its strong brand reputation built on reliability, consistency, and quality. South

African consumers trust Wimpy for delivering satisfying meals in a welcoming environment, making it a preferred dining

choice for families and individuals. The brand's menu diversity plays a pivotal role in attracting a wide range of customers,

offering options to suit varying tastes and dietary requirements. Moreover, Wimpy strategically places its outlets to ensure

visibility and accessibility, attracting both regular patrons and spontaneous visitors. The brand's innovative marketing

strategies have further strengthened its market position and customer loyalty, showcasing Wimpy as a formidable player in

the South African fast

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food landscape.

To gain a competitive advantage, Wimpy had to identify its core competencies and leverage them effectively. This involved

analyzing the market, understanding customer preferences, and providing innovative offerings that set Wimpy apart from its

competitors. Wimpy capitalized on its expertise in breakfast items and introduced a wide range of breakfast options,

becoming a preferred destination for early morning meals. The company also focused on continuously improving the quality

of its ingredients and ensuring consistency in taste across its outlets. By offering a superior dining experience and a unique

menu, Wimpy was able to differentiate itself and gain a competitive edge in the market.

Wimpy aimed to expand its presence across South Africa, targeting both urban and rural areas. This required careful

market analysis, site selection, and a robust growth strategy to ensure sustainable business expansion. The company

adopted a multi

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pronged approach to expansion, identifying high

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potential locations and strategically opening new outlets in

shopping malls, high

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traffic areas, and residential neighbourhoods. Additionally, Wimpy explored franchising opportunities,

allowing entrepreneurs to invest in and operate Wimpy outlets. This expansion strategy enabled Wimpy to reach a wider

customer base and establish its presence in diverse locations.

QUESTION $3(25$ Marks$)$

$$In formulating strategies, Wimpy must conduct a comprehensive analysis of its internal capabilities, external environment,

and competitive landscape. Utilising tools such as SWOT analysis, Porter's Five Forces, and PESTEL analysis, Wimpy can

identify strategic opportunities, mitigate risks, and align its goals with market trends and consumer demands.$$

The statement above emphasises the importance of continuously analysing the business environment. With this in mind,

analyse the value chain of Wimpy with in$-$text referencing.