Emprendimiento y Gestión de Organizaciones

A Critical Assessment of the Strategic Position of Melcom within the Retail Industry in Ghana

Abstract

Elvis Asiedu*

Strategic positioning is very important in this 21st century era, where the marketplace is overcrowded with intense competition and me-too products. Firms are expected to strategically position themselves to achieve competitive advantage. Any firm that lacks a clear strategy can end up in a muddle and confusion. This study provides a critical assessment of the strategic position of the Melcom chain of shops within the Ghanaian retail industry. A review of literature on the factors that strategically position a company above its competitors is conducted. This is followed by a summary of Melcom positioning and customer expectation. The study reviews the external environment in which Melcom operates and finds opportunities such as increasing demand for its products, but also uncovers threats such as competition from foreign investors. The report considers how the external environment influences Melcom's strategic position and identifies the company's generic strategies of differentiation and cost leadership. Using a case study method, the paper derives qualitative data on the retail industry in Ghana using Porter’s five forces. It achieves this by analysing the industry and evaluating its effect on Melcom. The report also reviews Melcom's competencies and resources, and identifies the sources of the company's competitive advantage. The report concludes with a series of strategic recommendations for Melcom. The aim of these is to help improve Melcom's market share and sales.