The internationalisation of supermarkets, the nature of competitive rivalry between grocery retailers and the implications for local suppliers in Southern Africa

Abstract : The growth and spread of supermarket chains globally has transformed how consumers purchase groceries and household consumable products and how these supply chains have developed. This thesis analyses the spread of supermarket chains in Southern Africa, with a specific focus on South Africa, Botswana, Zambia and Zimbabwe. It analyses how the internationalisation of supermarket chains in these countries has affected, and is affected by, competition dynamics and what the implications on suppliers are. This study is among the first to assess these topics in Southern Africa, particularly the implications on the competitive landscape and the effects of market power of supermarket chains on rivals and suppliers. The thesis draws on a critical review of the literature on industrial organisation-based theories of foreign investment and Ownership-Location-Internalisation (OLI) principles to understand the patterns of supermarketisation and internationalisation in the region. It identifies the significance of national policies, political economy dynamics, proximity to suppliers and firmspecific strategies related to market power in understanding the spread of supermarkets. A key finding is that internationalisation has not been to the extent that the literature predicted, including the entry and growth of transnational retailers in Southern Africa. What is seen instead is the ‘regionalisation’ of South African supermarket chains, essentially extending their home networks and oligopolistic rivalry into the region. The thesis also identifies the resilience of alternative forms of retail through buying group-led independent retailers in South Africa, alongside supermarketisation that started in the apartheid period. The complexities of how supermarket chains compete and how market power is exerted affects their spread. The study examines the impact of market power of supermarket chains, showing that competition needs to be understood narrowly by format and segment in very localised markets, possibly limited to a shopping mall in the South African context. Importantly, the analysis reveals the shortcomings of viewing competition through just a price lens and highlights the importance of understanding non-price dimensions of competition, given the characteristics of supermarkets and the way in which the positioning of supermarkets changes over time. This requires a more dynamic perspective. Through extensive firm-level and organisation interviews in each country, the thesis evaluates the impact on suppliers through a combination of a global value chains framework and industrial organisation principles of competition in markets. The forms in which buyer power is exerted in Southern Africa and the impact that this and other requirements has on regional supplier development is evaluated. It finds that supermarket chains are important in driving the upgrading of supplier capabilities to meet these requirements by providing access to wider ii markets, facilitating their climb up a regional or global value chain ‘ladder’. The study however also finds strong concerns of buyer power imposed through the trading terms negotiated with suppliers. As gatekeepers to store networks in the region, supermarkets offer suppliers the opportunity to access more consumers. However, unequal bargaining power leads to rents extraction from value chains by supermarkets, negatively affecting supplier participation and upgrading. The thesis shows that these topics are complex and inter-related, requiring multiple lenses to analyse them. Supermarketisation and internationalisation affect the structure of markets and the competitive landscape, while the degree of competitive rivalry and market power in turn impacts the pace of supermarketisation and internationalisation. Similarly, the market power of supermarket chains has a significant impact on suppliers, while the ability of supermarkets to grow into new markets hinges on the proximity and links to well-established supplier networks.D.Phil. (Economics

The implications for suppliers of the spread of supermarkets in southern Africa

Abstract: The growth of supermarkets in southern Africa opens local and regional markets to suppliers through participation in supermarket supply chains. Supermarkets in the region provide an important route to market for processed foods and household consumable products. Through a regional value chain lens, this article provides an assessment of the implications of the growth of supermarkets for the participation of suppliers in Botswana, South Africa, Zambia and Zimbabwe. The research finds that, while supermarkets provide important opportunities for suppliers, they also exert considerable buyer power that limits supplier development and upgrading. High private standards, onerous requirements and costly trading terms negatively affect supplier participation in value chains. Long-term investments are required to build the capabilities of suppliers to meet supermarket requirements in terms of quality, consistency, volume and cost-competitiveness

Development of a fuzzy logic based software for automation of a single pool irrigation canal

A fuzzy logic based software for automation of a single pool irrigation canal is presented. Purpose of the software is to control downstream discharge and water level of the canal, by adjusting discharge release from the upstream end and upstream gate settings. The software is developed on a fuzzy control algorithm proposed by the first author during his doctoral research work and published in literature. Details of the algorithm are given. The algorithm was originally developed using fuzzy logic tool box of MATLAB, which is proprietary software not available freely and hence cannot be adopted for general use. Present study describes development of a canal automation software based on this algorithm using open source tools, which are freely available. The software is transparent and intuitive, which can be easily applied by field engineers. The effort required in tuning the fuzzy model has been reduced by including an optimization technique. Also, a new procedure has been introduced for fuzzy inference based on the Mamdani Implication method. The software is tested by applying it to water level control problem in a canal with a single pool, as reported in literature, and satisfactory results are obtained

The inter-relationships between regulation and competition enforcement in the South African liquid fuels industry

The competition authorities have devoted considerable time and energy to investigating anticompetitive conduct in the broad area of liquid fuel, gas and related products, where regulation sets rules for firm conduct. Competition cases have included the Sasol-Engen merger, collusive arrangements in gas distribution and the pricing of bitumen for road construction projects, and alleged coordination through information exchange in diesel. Drawing on a review of these matters we assess the inter-relationships between regulation and competition enforcement. We argue that regulation can be designed to enable greater competitive rivalry, while anti-competitive conduct can also be better remedied through recognition of the role of regulation

Chicken pox infection in patients undergoing chemotherapy: A retrospective analysis from a tertiary care center in India

SummaryThere is paucity of data on the incidence, severity and management of chicken pox in patients receiving active chemotherapy for cancer.From October 2010 to October 2011, patients were included in this study if they developed a chicken pox infection during their chemotherapy. The details of patients’ cancer diagnosis and treatment along with clinical and epidemiological data of the chicken pox infections were assessed from a prospectively maintained database.Twenty-four patients had a chicken pox infection while receiving chemotherapy and/or radiotherapy. The median age of the patients was 21 years, and two-thirds of the patients had solid tumor malignancies.Overall, eight (33%) patients had complications, six (25%) patients had febrile neutropenia, four (17%) had diarrhea/mucositis, and four (17%) had pneumonia. The median time for recovery of the infection and complications in the patients was 9.5 days (5–29 days), whereas for neutropenic patients, it was 6.5 days (3–14 days). The median time for recovery from chicken pox infections in neutropenic patients was 10 days (5–21 days), compared with 8.5 days (0–29 days) in non-neutropenic patients (P=0.84). The median time for recovery from infections was 8.5 days in patients with comorbidities (N=4), which was the same for patients with no comorbidities.The clinical presentation and complication rates of chicken pox in cancer patients, who were on active chemotherapy, are similar to the normal population. The recovery from a varicella infection and complications may be delayed in patients with neutropenia. The varicella infection causes a therapy delay in 70% of patients. Aggressive antiviral therapy, supportive care and isolation of the index cases remain the backbone of treatment

Retro-peritoneal plasmacytoma: A case report and review of literature

Solitary Extramedullary Plasmacytoma (EMP) is an uncommon neoplasm. When diagnosed, head and neck region is its most likely location. Rarely, it may occur in the retro-peritoneum. We report a 44year old man with solitary extramedullary plasmacytoma in the retro peritoneum (RPEMP). The patient did not show response to three cycles of VAD chemotherapy. Thereafter Surgical excision of the mass was performed successfully. This is probably the first case report from Indian subcontinent

Adult immersion test for assessment of amitraz resistance in Rhipicephalus sanguineus ticks

Ticks are obligate blood sucking ectoparasites recognised globally as vectors of various pathogens, next to mosquitoes. The present study is conducted on brown dog ticks collected from naturally infested dogs in and around Thrissur district. Adult immersion test was performed and the parameters such as engorged tick weight, egg mass weight as well as tick mortality were recorded to derive the reproductive indices, percentage inhibition of oviposition and percentage mortalities. Non-linear regression analysis of the dose response data yielded the LC50 values at 95% confidence intervals and, the slopes and regression coefficients of the different parameters were also derived. The Resistance factors (RF) were calculated to categorise resistance levels into I, II, III and IV. Resistance to amitraz was detected at level II in tick isolates collected from Choolissery and Mundur, at level III and level IV in isolates collected from Mannuthy and Paravattani, respectively. Two isolates collected from Mannuthy were found to be susceptible. One way ANOVA of resistance levels revealed that the resistance levels III and IV were significantly different from that of susceptible and resistance level II. This is the first report on detection of amitraz resistance levels in dog ticks from south India calling for proper implementation of tick control strategies to prevent spread of amitraz resistance