No suppliers in India - Sample Essay
Credit Suisse Asset Management company wants to enter the Indian market to expand its market share, but before starting with that the company needs a deep analysis of the market in which it wants to operate. It will start from the Porter’s 5 forces to analyze the market and then build on that analysis a precise strategy. The first force is the customer. The elements on which we focused are mainly three.
The products supplied by the company are very unique; this let the customer not have a very big choice, especially considering that Credit Suisse is one of the best companies in the world supplying financial products; the customers are decided, or better assigned, by the government, so they are forced to request the products in specific areas and only to some specific companies; the market, for the moment, is not very big, and we can see it especially considering the potential it has and the fact that a lot of people do not even need this kind of products because they don’t have enough money.
We can conclude that their power is Medium/Low. Suppliers also have a very low or absent power, in fact we can say that there are no suppliers in India. Competition, instead, is high, because not a lot of areas are open to foreign companies for the moment and government, moreover, helps heavily local companies with subsidies and other forms of aids. Substitute products have a low power because, as said earlier, these are very unique products.
Finally new entrants, that for the moment are just starting to enter India for the particular sector. For this reason we classify their power as Medium/High, recommending to never underestimating them. Joint Ventures are a useful tool for the actual Indian market conditions, and even if the company is not really willing to use this it, this can be a very powerful weapon to enter the market with a sort of “Indian government approval”. The company need to follows all the rules and regulation which prescribed by government of India and SEBI.
CSR is corporate social responsibility, it implies besides making profit and taking responsibilities to the shareholders, an enterprise also needs to take up for workers, consumers, the environment, community and other stakeholders responsibilities. The core is to protect the legitimate rights and interests of labors, including extensive discrimination, the use of child labor, non-use of forced labor, healthy and safety work environment and systems. The Importance of CSR:
Corporate social responsibilities help to ease the gap between rich and poor, eliminate the hidden danger. On one hand, large and medium-sized enterprises can gather their capital advantage, superior management and human resource advantages of the poverty-stricken areas to develop resources that can expand their production and business, new growth points, and also can compensate for the lack of the funding in poor areas, solve the local labor and idle resources.
On the other hand, the enterprise also can help through charities of the people of the backward areas of the development of education, social security and health and medical community, the local government will not only solve the financial difficulties due to the inability to invest, also help the progressive development of the backward areas of social undertakings. What is more important, it also can achieve the unparalleled advertising to enhance the image and consumer recognition, and increase the market share.
CSR to be done by Credit Suisse in INDIA: Credit Suisse can get itself a very good image in front of the society by following CSR practices in India`. Credit Suisse can get it done in 4 different ways i. e. Internal, External, corporate citizenship and accountability. The external aspects could include the company’s fair trade policies, committing to the society, steps for complaining by stakeholders. The corporate citizenship would include educational facilities for the underprivileged people in the country.
CSR can also be done by planting trees and creating AIDS Awareness. They can also donate charity for orphans. In India they can also help in organizing movements which are of a social concern like Women Empowerment and it can also start a program such as “Credit Suisse Rising Stars” where they could take 20-25 students from colleges all over India and train them in financial market. Accountability refers to dedication of the company to report on its CSR activities.