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.
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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.
Publisher
University of Nairobi School of Business