Strategic responses to industry environment by The CIC Insurance group Ltd

Abstract

ABSTRACT The research was meant to find out the strategic responses to industry environment by CIC Insurance Group Ltd. The research took the approach of a case study. The environment is very dynamic and every now and then things change calling for development of strategies which will help the company survive in the battle of the fittest. There were various changes in the remote and industry environment that were identified posing challenge to CIC Insurance Group Ltd. These were summarized into Political, Economic, Social and technological for remote environment. Then there were also other changes that posed challenges in the industry environment and they were discussed under porters five forces framework which were classified under entry barriers, supplier power, buyer power, substitute availability, competitive rivalry, and finally government as the sixth force. The responses included compliance with the guidelines of IRA, cost leadership strategies, differentiation strategies, focus strategies, branch network strategies, adopting to technology, research and development, adoption of modern technology, proper claims payment, building trust with Diaspora market, easy payment modes which are flexible, marketing through the internet and also social media sites, corporate social responsibility (CSR), I am a cooperator campaign, increase of share capital, restructuring to split the company in to a group of companies, increase in sales and marketing force, market segmentation, development of need based products through research and developments, following right channels and lobbying where necessary. vi The study indicated that there is still need for more strategic actions by CIC Insurance Group Ltd to enable the insurance firm to fully match the environment in which it operates. These include executing with speed and certainty, developing and motivating its employees through training. Strategies are not static (they change with time), it means that in future there will be need for another study to identify strategies that will have been adopted in future since the current ones will have been out dated.