Rhino Capture in Kruger National Park

Terlanjur Ganteng, But Its True

Lukman Kresno O | Shopan J Endrawan | Husni Mubarak

Telaga Biru Syndicate

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KUIS

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Navigation
Kruger Profile Vision & Mission Issues

Analysis
Global Strategy Business-Level Strategy

Breakdown Case

Solution

Established in 1898 to protect the Nations fast-dwindling wildlife area In 2010, SA government shifted its strategy cut funding self-funding

 Internal Funding : Government : Annual Grant Tourism : Camps, Safari, Lodges Game Capture : Sale of Wildlife (2004)

Private Hunting Company

$2800 per inch of rhino horn Typical rhino hunt cost $82400 per hunter
Trophy Fees Standard Equipment Varied according to animal wounded or killed Low Daily Rates Depend on Service Offered

Kruger Average $30300 per rhino Ethical

Poaching $7200 per pound of rhino horn Ruthless

Kruger VS Poaching (Rhino)

Kruger National Park an Animal Supermarket

Primary markets involved buyers that

protected rhino national parks and photography safari owner Hunters had become the numerous buyers in secondary market
Not aligned with Krugers mission

VISION
Connecting to society

MISSION
To develop, manage and promote a system of national parks that represents the biodiversity and heritage assets by applying best practice, environmental justice, benefit sharing, and sustainable use.

Issues or Problems
How to manage the zonation ?

How to manage the fund ?

How to manage relationship with stakeholder ? How to manage the environment ? How to manage the safety and security ? How to prevent Poaching?

PEST

5 Forces

ILC

Entry Mode

Strategic Changes

Corporate Governance

Alternative to Growth

Porters Generic

Value Chain

RBV

Core

SWOT

Analysis

PEST
Politic Res nullis CITES 1970 Theft of Game Act of 1991 (exhibit 3)

Economic Low quality of SA life Population Growth and Demographic (exhibit 4) The crisis of 2008 has led to operational difficulties in South Africa the government slowly began to cut budgets The higher price of horn attracts many people to into this business.

PEST

PEST
Socio-cultural Low level of education to tribal society Yemen culture of Jambiyas. Hunter behaviour Asia superstition on Rhino horn Technology RFID Breeding technique

New Entrants - Attractiveness : Low Costly entry barrier Sophisticated law requirement Market leaders benefit in breed high value of wild animal

Subtitutes - Attractiveness : Low National geographic Discover channel Imax

Rivalry Among Competitor - Attractiveness : High The high growth seen in the tourist industry and the demand for the product Differentiate product and service (hunting packet) High exit barrier
Bargaining Power of Bargaining Power of Buyer - Attractiveness : Low Supplier - Attractiveness : Even in crisis era, buyer hasnt have price sensitivity High Buyer didnt have discretion in purchasing product Government here has a The quality product is important due to quality tight controlled under High switching cost (wild poacher vs Kruger)

INDUSTRY LIFE CYCLE

Entry Mode Strategy

Strategic Alliance : Partnership between communities and private companies

Strategic Changes
The park had developed into a tourist attraction because of the wildlife and the beautiful scenery, which was representative of South Africas Lowveld region

Adding two new missions (cultural heritage and constituency building)

Corporate Governance
The only condition required when an animal was sold was that its removal could not negatively impact the populations from which it came

Sell species that clearly not required ecological reason for their sale (white rhinos)

Sell rhinos through direct tender and auctions

White rhinos were sold more often than black rhinos, since black rhinos were rarer

Black rhinos moved from Kruger were donated as part of conservation efforts to reestablish them in countries where they had gone extinct (international translocations)

Before a rhino was killed, it had to have lived on the current property for more than two years

Corporate Governance
Bovine Tuberculosis (BTB) Monitoring

Transfrontier development

Coordination of game capture

HIV/AIDS Programme

Water Quality Control

Organic Growth

Inorganic growth
Cross border/nation partnership

Using the profit of the company by promoting high value animal to be hunt or sell Injection of funds from government yearly

Porter Generic Strategy

Value Chain Analysis

Logistics

Sustainable Competitive Advantage Analysis

Tangible Resources
Financial Resources: Supported by South Africas National Environmental Management Act, SANParks maximized income from wildlife sales, game capture, and tourism activities Organizational Resources : Institutionalized adaptive management, and group learning dynamics system. Physical Resources : Variety of animal species, large tourist operations with the park offering 21 rest camps, 7 private lodge concessions, and 11 private safari lodges Technological Resources : RFID microchips and tracking devices in the game capture to increase the capability of understanding rhino movements.

Intangible Resources
Natural Resources : biodiversity, the wildlife and the beauty scenery Human Resources : Kruger has a developing integration ability, and an institutionalized adaptive management system. Reputational Resources : Best National Park in all of Africa

Sustainable Competitive Advantage Analysis

Resource Attribute Rare Valuable Inimitable Non substitutable
Competitive Consequences Temporary

Tourist Operation

Competitive Advantage Sustainable

Hunting Policies

Competitive Advantage Temporary

Biodiversity

Competitive Advantage

Wildlifeness and Beauty

Scenery Game Capture

Sustainable

Competitive Advantage Sustainable

Competitive Advantage

KRUGER NATIONAL PARK

Core Competences Hunting policies, biodiversity, the wildlife and the beauty scenery, game capture

Capabilities Delivery experience of wildlife and beauty scenary

SWOT
STRENGTH
Good Infrastructure National Park Unique Selling Points Global Identity Risk of Breeding Animal Risk of Food Chain Natural Disasters Fund Cutting Illegal Poaching

THREAT

Hunting Policies Political Stability Biodiversity

OPPORTUNITY
Business Opportunities Growth of Tourism Collaboration with another SA Province

WEAKNESS
Fencing Security

Solution

Five Major Elements of Strategy

Arenas Biodiversity Human benefits Wilderness Cultural heritage Constituency building Vehicles Funding from SANParks (Government) Internal development by selling highvalue species such as white rhinos Partnership between communities and private companies Differentiators Environment (biodiversity) Accomodation (infrastructure) Environmental management techniques Environmental management research Environmental management policies Staging Infrastructure upgrading Access Capacity Implement operational management and auditing Marketing the KNP as a destination with regional linkages Nature-based and heritagebased tourism Economic Logic Use the fund wisely, effective and efficient Economic of scale

Lessons Learned
We have to know where we good at Corporate Governance is important

Thank You

Questions?