Refining the business development strategy of Grinding Media South Africa for forged steel products

Abstract

Grinding Media South Africa (GMSA) lost almost half of its market share for steel forged grinding media in Sub-Saharan Africa since 2019. While the organisation’s operational performance and product quality remained stable, the market underwent significant changes due to the implementation of economic liberalisation policies and market reforms. The objective of this study is to identify the factors that affect GMSA’s loss of market share and propose possible solutions to regain its competitive edge. Drawing on a detailed literature review and theoretical frameworks, a conceptual framework was developed to support the analysis. Insights are gathered through the review of secondary data. The competitiveness of GMSA is assessed by considering the altered business context. The study found that GMSA lost market share due to the economic reforms implemented by African Governments and the substantial increase in low-priced imported grinding media from China and India. Earlier opportunities to prevent a loss in market share by entering local partnerships and joint ventures, or establishing a local manufacturing facility, were missed. Furthermore, unless GMSA swiftly acquire the resources and capabilities to trade through a local partnership or joint venture, its market share will continue to be eroded by price- competitive imports and locally produced grinding media. It is recommended that GMSA and Magotteaux incorporate the acquisition of a local manufacturing facility into their global strategy to ensure the long-term sustainability of the business. The study emphasises the critical importance of rapidly adopting a business strategy aimed at retaining and increasing competitive advantage as soon as changes in the macro- environment, the market or competitor activity become known.