QUESTION ONE [40]

South African car company Mureza updated its website and social pages earlier in October of 2023 with an announcement that it will launch a new sedan in 2024 that will be available as both an electric (EV) or a petrol vehicle. According to the brand’s current estimates, the petrol model will sell for R196,000, while the EV will only be slightly more expensive at R225,000 – which will make it the most affordable battery-powered car in the country by far, besting the current holder of this accolade, the GWM Ora, by nearly R500,000.

Mureza was founded in 2016 and currently has six vehicle designs and 62 employees across its operations in the DRC, Kenya, Namibia, Niger, South Africa, Zambia, and Zimbabwe.

The home-grown automaker was supposed to release its first car in 2021, the Prim8 hatchback, at a starting price of R196,000, but by its own admission, it has not sold a vehicle in the country yet.

In a recent statement, the company said it “has not officially launched any vehicle products into the market” but that it has a stockpile of 6,000 units in partnership with Iranian SAIPA Motor Corporation which it is actively “preparing for the African market.”

“The models and specifications will be defined in due course, and information on where and how to purchase these vehicles will be announced via our formal channels,” it said.

The company aims to become Africa’s “flagship automotive brand” and intends to establish micro-factories in Namibia, South Africa, Zambia, and Zimbabwe that will not only produce cars but also batteries and components. In the interim, all manufacturing is hosted by its “technical partners” such as SAIPA, it said.

Mureza will also offer electric alternatives for all its internal combustion models in addition to  establishing a network of charging stations throughout Southern Africa, as well as battery- swapping programmes for its future EVs, according to its website.

With reference to the case study above, assess the functional strategies related to the value chain which can help Mureza gain a competitive advantage in South Africa

QUESTION TWO [30]

2.1 Conduct an analysis of the general environment in which Mureza operates. In your discussion, elaborate on the potential issues/reasons as to why Mureza has not been able to sell vehicles in its country of production and suggest whether you think this may change from 2024. (15)
2.2 Mureza has operations in various countries in Africa. Human resource management may be faced with various perceptions from a diverse workforce and manage it accordingly. Evaluate perception as a determinant of unfair treatment. (15)

Answers to Above Questions on Case Study

Answer 1: The functional strategies related to the value chain that Mureza can apply in order to achieve competitive advantage in South Africa is in relation to product differentiation which is achieved from Mureza’s decision to offer new sedan model as both electric vehicle and a petrol vehicle, and it provide the opportunity in the form of serving different market segments and preferences.

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