Anglo American Platinum Case Study

Globally, the mining sector is weathering unprecedented challenges.
Anglo American Platinum (Amplats) has proved to be an organization, proving its resilience and ability to manage change through the adoption and implementation of a focused strategy that is positioning the organization for the future.

By concentrating on elements within their control and building the foundations for continuous improvement, the firm’s management has ensured that they are delivering on their strategy. Shaping the business for a sustainable future – driving the transformation that will make them more robust, responsive and competitive firm in the mining industry.

What is competitive advantage?

Competitive advantage is about more than just product and service.
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As can be seen from the above AP is a strong competitor in its industry gaining an maintaining strong profit margin over the years. Its profit margin has been strengthened not only through its hybrid low cost and differentiation strategy it employs but executed by its tangible resource namely its skilled and highly trained employees. According to the Vrin test in order for a resource to valuable, rare, inimitable and non-substitutable. AP meets the criteria for all four tests its tangible resources are valuable it has one the most efficient assets that allow the firm to

Anglo Platinum’s Resources and capabilities that enable competitive advantage?

“A company’s resources and capabilities represent its competitive assets and are determinants of its competitive assets and are determinants of its competitiveness and ability to succeed in the marketplace. Ehlers and Lazenby, (2011) “argues that, central to the resource-based view is that there are three types of resources that will lead to distinctive competencies and therefore to competitive advantage. These broad categories of resources are namely; tangible assets, intangible assets and organizational capabilities”.

Anglo Platinum prides itself on innovative technology and skilled employees. Its competitive advantage lies in its ability to innovate
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This strategy is all about gaining a competitive advantage by being the lowest priced producer in the market. In order for this to be successful, the company’s strategy has to be that of lowering costs by either sourcing low cost materials, using supplier relationships and bargaining power to get preferential rates, outsourcing some functions, efficient manufacturing and automation to reduce labour costs or keeping the core product simple. A cost leadership strategy caters for a wider market and aims to increase market

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