Case Study Of Capitec

1875 Words 8 Pages
Register to read the introduction… Market LSM 3-7 – there is a large unbanked market that requires a service that is localized to them to “trust” the service. They have the first mover advantage.
Provide unsecured Micro-lending –unsecured loans ranging from 3 months to 24 months.
Debit card – Saving account encouraged through high interest provided on saves.
Unique revenue model and alliances that promote withdrawals from retailers, decreasing the cost of holding cash and the security associated.
Leveraging off technology to maximize efficiencies, this allows them to develop their own value chain, which limits, cost, confusion and time for the consumer an appealing feature to the market.
CVP
Simple, fast, cost effective credit and banking facilities to a previously unbanked market in a localized manner.
Profitability
Capitec has grown from a turnover of R2.863Bn in 2006 to R7.9Bn in 2013. Having 4.2 MN active clients in 2013 up from 3.2 MN in 2012. Although there is a risk with unsecured lending particularly as costs go up i.e. electricity, fuel food. However by increasing its customer base it has more transactional income off which to leverage its
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However, it would require the costs of telecommunications in South Africa to drop even further, to ensure that people savings are not swallowed up through use of their cell phones. Due to the very unclear and opportunistic pricing of services that the mobile industry has enjoyed (these do seem to be decreasing due to competitive rivalry now) but questions still arise at the cost of calls and data in the South African market.

References

Collis, D. J. and C. A. Montgomery (1995). "Competing on resources." Harvard business review 73(4): 118-128. Collis, D. J. and M. G. Rukstad (2008). "Can you say what your strategy is?" Harvard business review 86(4): 82-90. Mascarenhas, O. A., et al. (2006). "Lasting customer loyalty: a total customer experience approach." Journal of Consumer Marketing 23(7):

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