Action steps for African Business Schools
2011-05-24 13:56:36 UTC
Case Study: Kalahari.net: achieving growth in a limited market
Title
Kalahari.net: achieving growth in a limited market
Author
Bick, G; Townsend, S
Pages
21
Product Type
Reference #
306-106-1
Teaching Note
not available
Institute
Setting
South Africa
Year
2006
Keywords
Internet retailing; Strategy; Marketing; e-Commerce; Internet marketing
Summary/
Abstract
Abstract
It was February 2005 and in the past six years kalahari.net's customer base had grown from 9,000 to just under 250,000. As such it was one of South Africa's largest 'e-tailers'. Since 2001 the company had diversified out of selling only books and music, to include films, gaming, travel, wine, magazine subscriptions, electronics and other products. Now, Hein Pretorius, Chief Executive Officer of kalahari.net, and his team of 49 employees faced the challenge of the declining prices of CDs and DVDs, which was having a markedly negative impact on the financials of the company. In reality this meant that, while keeping prices competitive with the broader retail market, kalahari.net needed to up its sales considerably to compensate for the lower prices and reach its former gross profit margins. Pretorius believed that retail, whether it be on- or off-line, was purely a volumes game. So, what could kalahari.net do to up its sales volumes?
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Reports on the AABS Members Meeting 2011 and Responsible Management in Africa Conference 2011
