Competition dynamics among foreign and local businesses in Chris Hani District Municipality the role of product diversification and pricing strategies

The overarching aim of this study is to shed light on the effects of the competitive dynamics between local and international enterprises in townships and rural regions of the Chris Hani District Municipality (CHDM), Eastern Cape province, South Africa. To achieve this aim, our study compares the effects of these selected strategies between local and foreign businesses owned by local and foreign traders in townships and rural areas in the CHDM. We employed a quantitative research approach using questionnaires to gather data. In the complete model, the indirect effect of product diversification (PD) on competition dynamics (CD) through pricing strategy (PS) is minimal and non-significant. Similarly, for foreign businesses and local businesses, the mediation effect remains negligible. These findings suggest that while PD influences CD directly in some contexts, PS does not play a significant intermediary role. Overall, the results highlight the direct impact of PD on CD, particularly for foreign businesses. The mediating role of PS is negligible, and the importance of diversification for competition differs significantly between foreign and local businesses. These findings suggest the need for tailored diversification strategies based on the business context to enhance competitive positioning Key Words:Product diversification, pricing, competition dynamics, local, foreign