You are on page 1of 2

Mini Case on Tiger Brands Limited

IS TIGER BRANDS STRATEGICALLY READ

TO COMPETE AND COOPERATE?


Question 1. How well does Tiger Brand’s vision and mission statements
help narrow down feasible alternative strategies available for the firm?
Vision of Tiger Brands Limited:

The company’s Vision reflects its long-term target to complete the respect and admiration of
its peers, the business society, its business associates and all of its other stakeholders. Tiger Brands
strives to be a high performing, fast-moving consumer goods company of immaculate business
reputation, with leading brands, operating across the world in a number of selected emerging
market territories.

Mission of Tiger Brands Limited:

To deliver income increase that is 3% larger than South Africa’s GDP growth plus inflation; and
reach an operating margin of 15%, in that way generating actual earnings growth and a return on
investment which exceeds the company’s cost of investment.

To be a high performing, fast–moving consumer goods company with leading brands, operating
across the globe in several selected emerging territories. It is very deep and reliant statement. As it
wants to capture market share. It uses various kind of generic and grand strategies for achieving its
goals and objectives. It narrowed downs its various strategies by telling that it wants to be leading
brand in FMCGs so it does not use strategies of stability as it wants to adopt various kinds of
diversification strategies. Through the statement we came to know that it is at growing stage and
does not have to adopt retrenchment or liquidation strategies. So it’s vision and mission statement
narrowed down the stability, retrenchment and turnaround strategies and wants to adopt and
follow the various expansion and diversification strategies in respect to concentration and
integration strategies to become the market leader and product leadership.

 The strategy is always for the long period of the time. It cannot be for short term because
there are so many resources associated with the vision and mission of the company. So their
aim is to be the world’s most admired brand for consumer packaged-goods in emerging
markets.
 Tiger Brand is also working towards high performance, fast-moving company.
 Drive South African volume growth to maintain and grow market shares and expand into
adjacent markets.
 Step change expansion in emerging markets to accelerate growth.
Question 2. Does Tiger Brand pursue a cost leadership, differentiation,
or focus strategy? Evaluate its strategic approach in comparison to its
competitors.
Tiger brand should pursue cost leadership strategy. Because If you’re goal is to be a cost leader, it’s
good to keep the following things in mind:

1. Don’t lead on low price when you can’t lead on low cost. If your costs are fundamentally
lower relative to the competition, then by all means lead with low prices to the consumer. If
you’re costs are not fundamentally lower than the competition and you attempt to lead with
low prices in the market, you better have a lot of cash lying around because that’s what you
need to stay afloat for very long.

2. Do what the talents of you and your employees lend your organization to do. If your
company is full of people who are fantastic at accounting, process improvement, lean
manufacturing, supply chain management and tend to be frugal individuals then become a
cost leader. Employees like that are born with cost leadership DNA and can be counted on to
reduce costs for you. However, if your company consists of many highly creative people who
excel in design then you probably ought to become a benefit leader.

3. Realize that some markets (commodities) will force you to become a cost leader – or you
could go out of business. I grew up on a farm where we sold alfalfa, corn and peas for a
living. Because these are commodities (a commodity is something that can’t easily be
distinguished in terms of superior or different benefits) the only way we could be profitable
was by cutting costs as much as possible without impacting production and yield. It’s hard to
claim that your corn tastes better than somebody else’s corn! To most people, corn is corn
regardless of where it came from or who grew it.