make adjustments to penetrate this growing market sector. There are a considerable number of spares shops operating in the townships that are moving high volumes for the DIY mechanic and individual. Castrol seems to be dominating this market and has established distribution points at locations near taxi ranks and major shopping centres within the townships.Weaknesses in certain sectors – There are lucrative markets like the pulp and paper as well as the crop spray market, which Caltex is currently not involved in. Internationally Caltex has access to this technology and some operating Caltex companies are very strong in these areas, but this advantage is not utilised here in South Africa.Spares shops and service centres – Caltex is not well represented in these sectors. The smaller non-franchised service centres use small volumes but since there are many of them, the combined volume is rather substantial. However, there is the added advantage that their negotiating power is weak, and therefore capital equipment investment is low and this culminates in low discounts.5.3 OPPORTUNITIES Brand and product strength – Ola can take advantage of the strength of their brands like Magnum and Cornetto which have established themselves strongly in the ice-cream sector.Growth in cutting oils – an opportunity exists in the highly specialised and lucrative field of cutting oils. Caltex have the technology to become a market leader in this field.Communication – Caltex should create adverts that are relevant to the local market. Traditionally Ola uses international adverts which they apply to the market, although they are successful to some extent. A local flavour would ensure better success. Taxi Recapilatization Project – The government intends to change the taxi industry by having fewer but bigger diesel engine minibuses. The plans are at an advanced stage. ...
