Mr. Price Business Model

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History: In 1987, Stewart Cohen and Laurie Chiappini opened the first Mr. Price store. The first stores were financed through franchising because they were incapable to raise the funds themselves. Refer to diagram 1 and 2. When they included another member into their board the name of the company changed to Mr. Price Group. Mr. Price started growing rapidly and by 1995 there were 237 stores in South Africa. They have expanded even more and by 2011 when they celebrated their 25th anniversary, they had 1000 corporate owned stores in South Africa and 24 franchised stores aboard. Since then they have launched online stores as well as a mobile site. They have also expanded into the rest of Africa by opening stores there. Board of directors: The …show more content…

It also states their operations in order to reach their goals. The model incudes functions and components from all their activities, it also includes the revenues it receives and the expenses of the business. Mr. Price has a vision of becoming a top performing international retailer. They believe that their main purpose is to add value to their customers’ lives and worth to their partners’ lives, while caring for communities and the environment. Mr Price has three main ways in which to obtain capital which includes: Financial, manufactured and intellectual. Mr. Price has a good outcome as their inputs and outputs correspond. They had a total value of R18.1 billion from financing capital, they had an inventory value of R1.7 billion from manufactured activities and a book value of R 328.2 million in intangible assets. See diagram …show more content…

Price shows a clear result of their growth and Mr. Price getting closer to meeting their goals. Their footprint shows that they have a total of 438 Mr. Price clothing stores, 166 Mr. Price home stores, 72 Mr. Price Sport stores, 278 Sheet Street stores and 196 Miladys stores. This gives you a total of 1 150 stores with a total trading area of 583 559m². They also operate in Botswana, Namibia, Swaziland, Nigeria, Ghana, Zambia, and the possibility of Australia. With this they also currently have 15 franchise stores operating in Kenya (8), Mozambique (3), Rwanda(1), Tanzania(2) and Uganda(1). See diagram

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