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Business And Location Strategy: Cashbuild's Location Strategy

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With its Location strategy, Cashbuild uses this capability to develop new stores as well as accessibility of their stores to both rural and urban areas as their competitive edge. They have invested their profits to obtain more capital assets. They show positive results on asset additions on their Annual Financial Statements. Their Information Technology needs improvement though, in order to result in competitive advantage for them.
The competencies of their leadership are superior and are credited for contributing to their success in the industry. The decentralised control of power has ensured that at branch level you have people who own the strategy and are not only ‘blind’ implementers. Their staff members are motivated as a result. They have implemented learnerships as part of developing the competencies of their staff members. They have also trained their staff members to provide expert advice to the customers thereby eliminating the …show more content…

Cashbuild’s business model of 2015 is built on what they call Six Capitals which are Financial, Manufacturing, Intellectual, People, and Social & relationships and Natural capitals. These capitals, despite being used for value creation, are also used as inputs within the business model. With regards to the financial input Cashbuild has managed to create financial capital through its operation such as capital expenditure, increase in share price and dividends to its shareholders. The availability of financial capital has enabled Cashbuild to efficiently provide the required goods and services timely. This on the business model is achieved through business reliance and financial performance. Cashbuild has managed to expand its retail channel presence and increased its centralised distribution and replenishment through increasing its operations efficiency in management of its distribution

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