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TEACHING NOTE
CASE 30
Rhino Poaching in South Africa
Overview
This intriguing case sparks lively class discussion about the ethics of the rhino poaching business, and the
varying attempts to reduce this problem from several perspectives. Kruger National Park was established
in South Africa in 1898 as a game preserve to protect the fast-dwindling wildlife areas, but by the turn of
the century, white rhinos were extinct in Kruger. The first translocation of white rhinos to Kruger National Park
occurred in 1961, and a total of 345 white rhinos had been relocated from the parks in Kwa Zulu Natal by the
mid-1970s. In 2015, the Scientific Services for SANParks, estimated that 8,000 white rhino and 345 black rhino
existed in Kruger National Park. Despite a significant poaching problem that took a toll on the rhino population,
Kruger National Park still had the largest rhino population in the world.
Kruger National Park covered 7,722 square miles (20,000 square kilometers), roughly the size of Massachusetts
in conservation area, with eight gates that controlled the flow of traffic into the park. Since its establishment,
it had become known for its unrivaled wildlife diversity and easy viewing. It was also known for its world
leadership in advanced environmental management techniques, research, and policies. Many viewed Kruger as
the best national park in Africa in all aspects—management, infrastructure, and, of course, biodiversity. Kruger
was the flagship of South Africa’s 19 national parks and contained a variety of species: 336 trees, 49 fish, 34
amphibians, 114 reptiles, 507 birds, and 147 mammals. Over time, the park became a tourist attraction because
of the wildlife and beautiful scenery of South Africa’s Lowveld region.
Despite the success of South African National Parks’ conservation programs, rhino poaching to obtain the horn
developed as a major problem. Rhino horn was in demand for carvings, recreational purposes and traditional
medicinal uses. Although there was no proven benefit, the horn was ground into a powder and used in a number
of traditional medicinal mixes to cure various diseases. The demand for rhino horn had increased in Asian
countries, with the most significant demand coming from China and Vietnam. China’s medicinal use of horns
dated back centuries for curing ailments including fever, headache, delusions, and nausea. In Vietnam, the
powder was inhaled for hangover relief. With the increase in demand for rhino horn in Asian countries, the price
for the end product had increased, and rhino horn became one of the most expensive substances on the planet.
The declining rhino population left only a limited supply of horn that continued to drive the price per horn even
higher than US $80,000 per kilogram at the end market. The onslaught for wildlife poaching across Africa had
not slowed since 2007, with more than 1,200 rhino killed in 2015 alone.
Do National Parks Have Suffcient
Resources to Fight Wildlife Crime?*
:
Case 30 Teaching Note Rhino Poaching in South Africa
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Rhino poaching was controlled by crime syndicates which went into villages surrounding the park to hire teams
to find and kill the rhino. The syndicates paid the person who shot the rhino US $25,000 and the person who
carried the horn US $8,000. Because of their low standard of living, a villager’s choice was already made when
it came to deciding whether to take advantage of the syndicates’ offer and their money to poach rhino.
As head of Veterinary Wildlife Services for SANParks, Dr. Markus Hofmeyr’s primary responsibility was to
support SANParks management through the delivery of a professional service related to capture, translocation
and veterinary care in support of conservation of all the species that live in the 19 parks in South Africa. Rhino
poaching, while a huge concern due to the loss of the rhino, would not be stopped inside the parks without
government assistance to combat the economic and criminal syndicate crime outside of the parks.
As Dr. Hofmeyr prepared his next year’s budget, the looming question was how much more of his budget could
be diverted from conversation to anti-poaching activities. The issue was how to combat rhino poaching when he
was spending a large percentage of his time and budget on rhino management related activities, knowing that the
percentage of his budget dedicated to the rhino would continue to increase, which meant less attention to other
key wildlife management requirements.
The case examines the ethics of rhino poaching from several perspectives and presents a number of potential
options for combating the poaching problem.
Suggestions for Using the Case
This case can be taught successfully after your lecture on Chapter 9: Ethics, Corporate Social Responsibility,
Environmental Sustainability, and Strategy. Ethical standards such as ethical universalism and ethical relativism
and drivers of unethical business strategies and behavior are illustrated in the case. In additona, dilemmas com-
plicating an integrative social contract can lead to a lively classroom discussion of the case. Viewpoints to con–
sider include: (1) SANParks and existing animals in park, (2) Poachers (3) Crime syndicates (4) Critics against
the slaughtering of defenseless rhino, (5) South African and other governments, and (6) society.
■ SANParks exists as animal sanctuaries and wildlife habitats. In our opinion, the parks’ responsibility is to the
African government and to society to protect and preserve the animals in their natural habitat. That mission
excludes dehorning the rhino. Explicit in the park’s responsibility to the animals is an aggressive program to
protect the animals from harm, which includes aggressive measures against poaching.
■ Poachers are local criminals who prey on the animals for personal financial gain. Their crimes are compounded
by the pain, suffering, and death caused to the animals already on the endangered species list, which elevates
their actions to crimes against society.
■ Crime syndicates are the organized criminals who control the illegal trade in rhino horn. These criminals
source the horn (via poachers), and market and distribute it around the world. These criminals commit
crimes against society by reducing the dwindling herds of endangered rhino.
■ Critics against the slaughter of rhinos include non-governmental organizations (NGOs) and concerned
people around the world. These groups and individuals are the global voice of the rhino and may have a
chance to mobilize public opinion and even governmental action to protect the rhinos.
■ South African and other governments are stakeholders in the rhino poaching problem. South Africa has
the largest population of rhino in the world and has a duty to the world community to protect them. World
governments also have a duty to assist in protecting the rhino.
■ Just as society has an interest in the rain forest and the bald eagle, so does society have an interest in the
rhino.
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The assignment questions and teaching outline presented below reflect our thinking and suggestions about
how to conduct the class discussion and what aspects to emphasize.
To give students guidance on the case analysis and the analytical tools to utilize in preparing the “Rhino
Poaching in South Africa: Do National Parks Have Sufficient Resources to Fight Wildlife Crime?” case for class
discussion, we strongly recommend providing class members with a set of study questions and insisting that they
prepare good notes/answers to these questions in preparing for class discussion of the case.
To facilitate your use of study questions and making them available to students, we have posted a file of the
assignment questions contained in this teaching note for the case in the instructor’s resources center of the
Connect Library. (There is a set of study questions posted for each of the 31 cases included in the 21st edition.)
You may find it beneficial to have your class read the “Guide to Case Analysis” that follows Case 31 and is
posted in the instructor resources section of the Connect Library. Students will find the content of this Guide
particularly helpful if this is their first experience with cases and they are unsure about the mechanics of how to
prepare a case for class discussion, oral presentation, or written analysis.
Video for Use with the Rhino Poaching in South Africa: Do National Parks Have Suffcient
Resources to Fight Wildlife Crime? case. There is a 12:50-minute YouTube video from 2015 that examines
combatting rhino poaching in Africa with the use of drones. The video can be accessed at https://www.youtube.
com/watch?v=paSVWkOfSWQ. You may consider showing the video at the beginning of the class or having
students watch the video on their own prior to the beginning of class.
Suggested Assignment Questions for an Oral Team Presentation or Written Case Analysis. This
case functions well for students in an oral presentation, written analysis, or class discussion for your strategy
course. Our suggested assignment is the following:
Dr. Markus Hofmeyr has noted your skills in strategic management and has retained your services to help assess
Kruger National Park’s situation, and make recommendations for improving the park’s wildlife conservation
strategy, specifically protecting the endangered rhinos. How would you reduce poaching in the park? You have
been asked to provide Dr. Hofmeyr with a 4-6 page (double-spaced) report, along with charts and supporting
exhibits that you deem appropriate, that covers the following points:
1. An assessment of the competitive forces operating in the rhino horn sales industry.
2. A brief identification and evaluation of the forces driving change in this industry.
4. A concise discussion of the key success factors for competing in the rhino sales industry.
5. A SWOT analysis of Kruger National Park or South African National Park (a supporting exhibit containing
your bullet points would be appropriate).
6. The issues upon which you think Dr. Markus Hofmeyr and Kruger National Park should focus their attention.
7. A set of recommended actions addressing the strategic avenues for protection of the rhino herds that Kruger
National Park should pursue. Each recommendation should be accompanied by persuasive supporting
arguments.
You are expected to provide Kruger National Park and SANPark’s senior executives with a report that is thor–
ough and thoughtfully prepared, that reflects a strong grasp and application of the tools and concepts of industry
and competitive analysis, company situation analysis, and ethics, and that is professionally presented.
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Assignment Questions
1. What is the objective and mission of SANParks/Kruger National Park? Is selling rhino horn consistent with
their objective and vision? If not, then should it be? Defend your position.
2. Identify the price and the sources of demand and supply of rhino horn. What trends do you identify and what
are the likely effects of these trends on the long-term problem of poaching?
3. Identify solutions to the problem of Rhino poaching. What are the pros and cons of each?
4. How can NGOs and non-African governments help to reduce the rhino poaching problem?
5. Construct a five forces model for the rhino sales industry. What competitive threats are associated with the
rival sellers, suppliers, buyers, substitutes, and new entrants?
Teaching Outline and Analysis
1. What is the objective and mission of SANParks/Kruger National Park? Is selling rhino horn
consistent with their objective and vision? If not, then should it be? Defend your position.
The objective of the SANParks/Kruger National Park is to protect the fast-dwindling wildlife areas and
animals. The mission of SANParks/Kruger National Park is to plan and implement wildlife management
programs, monitor and manage wildlife disease, manage wildlife sales and the donation program, conduct
relevant wildlife research and provide wildlife research support, train operations and veterinary skills for the
wildlife industry, and manage the biobank for SANParks.
Even if the sale of rhino horn was legalized, selling rhino horn is inconsistent with the mission of the park.
2. Identify the price and the sources of demand and supply of rhino horn. What trends do
you identify and what are the likely eects of these trends on the long-term problem of
poaching?
The selling price given in the case for rhino horn was about $80,000/kg at the end user market, which was
greater than the price of gold, heroin (wholesale) and cocaine for comparable weight.
The sources of demand were global collectors of rhino horn carvings, and users of horn for recreational
and medicinal purposes. Ground rhino horn was used in various traditional medicines to cure disease. The
greatest demand for rhino horn was from China and Viet Nam. The Chinese used rhino horn to cure fever,
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and thus increase demand. Vietnam and China were both experiencing an increase in GDP, which suggested
3. Identify solutions to the problem of Rhino poaching. What are the pros and cons of each?
There are several nonexclusive solutions to the rhino poaching problem.
1. Kruger National Park could significantly increase the number of rangers and their ability (e.g., more
helicopters and airplanes) to intercept and destroy the poachers. If the park could increase the probability
2. The South African government could seriously disrupt the poaching industry with increased and vigorous
law enforcement, especially by tracking and seizing funds. The funds seized could be dedicated to
make the venture even riskier.
3. Trading in rhino horn could be legalized, which would make rhino farming, and thus protection of
captive rhino more attractive. If the rhino horn could be legally sold, the increased supply could decrease
price and thus reduce the profitability of poaching (assuming no increase in demand as a result of the
4. National governments and NGOs could theoretically reduce aggregate demand for rhino horn by linking
the illegal rhino horn trade to the reduction of the rhino population. Massive publicity campaigns
illustrating the shrinking rhino population and the impact of poaching could reduce the demand for rhino
5. Development of synthetic rhino horn, indistinguishable from wild horn, could reduce the demand for
wild horn as the aggregate supply of horn increased and the price went down. However, if the synthetic
6. Dehorning wild rhino could theoretically reduce the death of wild rhino by poachers. According to the
case, there are about 8,000 rhino in the 7,700 square mile Kruger National Park which would make
dehorning a time and cost prohibitive venture. The case states that dehorning would require “at least
and would not have the desired outcome.
7. Collaring rhino would be an expensive program and would only alert the monitors after the rhino was
dead or dying. If the Park had rapid response ranger groups located close to poaching activity, the
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8. An increased investment in intelligence could help reduce poaching by providing the rangers with
information needed to prevent kills rather than respond after a rhino has been killed. The crime
syndicates have been successful in penetrating the ranger service (see the epilogue to the case), and
undoubtedly the government. An aggressive intelligence operation to locate compromised rangers and
a high probability of success.
9. Investing in the villagers and increasing their engagement in the protection of the rhino is theoretically
possible; however, as stated in the case, due to the degree of poverty, the villagers minds are made up
to poach when offered the significant amount to kill a rhino (over 40 times the Mozambique per capita
income). The ability of the government to fund and administer programs of sufficient magnitude to offset
the opportunity to make about the equivalent of a life-time of work is in doubt. Also, like the majority
have a more significant impact.
10. South Africa and NGOs could attempt to enlist the aid of countries around the world to track and seize the
funds of criminals involved in rhino poaching. Although this sounds very attractive and if implemented,
would have a devastating effect on the poaching, gaining multi-country compliance would be difficult.
4. How can NGOs and non-African governments help to reduce the rhino poaching problem?
The South African government has proven to be very ineffective in combating the rhino poaching problem.
The greatest demand for rhino horn is from China and Viet Nam, and the governments of these countries
have provided no help with the problem. Part of the lack of response from the governments of Viet Nam and
China could be attributed to the deep cultural tradition of using rhino horn (and the governments are part of
that culture), and the difficulty of altering the culture.
NGOs (non-government organizations) and non-African governments may be the best weapons in the short-
term to address the poaching problem. NGOs can put very visible public pressure on the governments of
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5. Construct a five forces model for the rhino sales industry. What competitive threats are
associated with the rival sellers, suppliers, buyers, substitutes, and new entrants?
A Porter’s Five Forces model suggests that the competitive pressure in the rhino poaching industry is 1.4/5
(very low).
The components were rated on a 1–5 scale, with 1 as negligible, or little, competitive strength, and 5 as
intensely competitive.
1. Rivalry among competing sellers: Competitive Force — 1
There is nothing in the case to suggest any competition among sellers. The demand for rhino horn is
growing and the price continues to rise. From information provided in the case, there is more than
3. Competitive Pressure from Substitute Products: Competitive Force — 2
The uses for rhino horn are carvings, medicinal uses and representation of wealth. Although elephant
tusk and whale baleen are used for carvings, and there are numerous sources for medicinal substances,
5. Competitive Rivalry Among Existing Sellers: Competitive Force — 1
The rhino horn suppliers are a unique case due to the extreme risks, the illegality of the industry, and the
impoverished condition of the villagers around the Kruger National Park. The shooters’ pay ($25,000
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Epilogue
827 lost in 2015. The last census of Kruger’s rhino population, in 2015, showed the park was reaching a stage
where the mortality rate was almost equal to the birth rate. Funda says that when the number of rhinos killed
exceeds the birth rate, the park will need to look at other methods, such as removing rhinos’ horns.
The South African Integrated Strategic Management of Rhinoceros Approach (passed in 2014) was being