Professional Documents
Culture Documents
BUSINESS POLICY
STRATEGIC ANALYSIS
“RELIGARE SECURITIES
LIMITED”
VISION
To build Religare as a globally trusted brand in the financial services domain and present
it as the ‘Investment Gateway of India’
MISSION
Providing financial care driven by the core values of diligence and transparency.
BRAND ESSENCE
BRAND IDENTITY
Name
Religare is a Latin word that translates as 'to bind together'. This name has been chosen to
reflect the integrated nature of the financial services the company offers.
Symbol
The Religare name is paired with the symbol of a four-leaf clover. Traditionally, it is
considered good fortune to find a four-leaf clover, as there is only one four-leaf clover for
every 10,000 three-leaf clovers found. Each leaf of the clover has a special meaning. It is
a symbol of Hope, Trust, Care and Good Fortune.
CORPORATE OBJECTIVES:
3. To conduct the business of sale, purchases, distribution and transfer of shares, debts,
instruments and hybrid financial instruments and to perform all related, incidental,
ancillary and allied services.
5. To receive funds, deposits and investments from the public, Government agencies,
financial institutions and Corporate bodies; grant advances and loans; conduct
advisory services related to banking activities, project financing, funding of mergers
and acquisition activities; fund management and activities related to money market
operations.
7. To carry on the business of financing; provide lease and hire purchase services; to
provide consultancy in the area of lease and hire purchase financing.
8. To operate mutual funds; receive funds from investors; equity or debt instrument
research activity instrument in debt and/or equity instruments.
SWOT ANALYSIS
STRENGTHS
5. Competition from banks - Most of the banks due to good branding have the faith of
the customers of their banking database. So they enjoy the liberty of huge database
and customers find it more reliable to trade there rather than with a unknown broker.
Also banks like HDFC Bank and ICICI Bank have the advantage of linking the
trading accounts of their customers to saving accounts. This makes trading easier,
and at the same time a trader withdraws exactly as much money from his account as
is needed to complete the trade. Similarly sales proceeds are credited directly to
saving account.
OPPORTUNITIES
1. Additional centers will increase the clientele base and in-turn will increase
revenue
2. Retail sector is expected to grow due to reduction in interest rate and opting for
new opportunities in equity and related instruments
3. Rapid penetration of Internet and computers will be instrumental in increasing
e-broking business
4. Ever-increasing market
5. Improving Technology
6. Unfulfilled needs of the customers - With so many competitors offering their
products in the market but no one is able to completely satisfy the customers.
Some have the problem of lack of information or some were scared of volatility of
the stock markets.
THREATS
Strengths are the strong areas or attribute of the company, which are used to overcome
weakness and capitalize to take advantage of the external opportunities available in the
industry. Weakness are painful for the company means these are the weak factors which
needs to be improve in future otherwise if they exposed to the competitors they can take
the advantage of it.
INTERNAL WEAKNESSES
Low investment on Advertisement 0.1 2 0.2
Customers not satisfied 0.1 1 0.1
Low Investment on employees training 0.15 1 0.15
TOTAL 1 2.87
Opportunities are the chances exist in the external environment, it depends firm whether
the firm is willing to exploit the opportunities or may be they ignore the opportunities due
to lack of resources. Threats are always evil for the firm, minimum no of threats in the
external environment open many doors for the firm. Maximum number of threats for the
firm reduce with their power in the industry.
EXTERNAL OPPORTUNITIES
EXTERNAL THREATS
TOTAL 1 2.8
Critical success factors are extracted after deep analysis of external and internal
environment of the firm. Obviously there are some good and some bad for the company
in the external environment and internal environment. The higher rating show that firm
strategy is doing well to support this critical success factors and lower rating means firm
strategy is lacking to support the factor.
SPACE MATRIX
(STRATEGIC POSITION & ACTION EVALUATION)
Opportunities
Market growth is picking up 0.1 4 0.4 4 0.4
Government contracts 0.1 2 0.2 4 0.4
Threats
Increasing competitors 0.12 4 0.48 1 0.12
Increasing cost of human
capital 0.08 2 0.16 2 0.16
0.7 0.36
Strengths
Innovation 0.11 4 0.44 4 0.44
Large Employee Base 0.07 3 0.21 2 0.14
Good service quality 0.1 3 0.3 3 0.3
Financial stability 0.1 4 0.4 3 0.3
Strategic alliances 0.09 4 0.36 4 0.36
Weakness
Not yet internationalized 0.09 2 0.18 1 0.09
Smaller branch network 0.09 1 0.09 2 0.18
1.15 1.17
PORTER’S FIVE FORCES MODEL FOR
COMPETITORS ANALYSIS
Our goal here is to address the most important dimensions of each of the five forces, for
they will be incorporated in the knowledge base (e.g. in the form of business rules) of the
proposed expert system. A number of important economic and technical characteristics
are critical to the strength of each competitive force.
1. Entry barrier
Past low entry-barrier: Since the early ‘80s Indian policy makers and politicians have
placed tremendous faith in the public equity market. Partly as a result of lack of state
resources, partly because of pressure from various segments to ‘develop’ the Indian
capital markets, businessmen have been encouraged to tap the public savings directly by
issuing equity. The encouragement primarily came in the form of low entry barrier. As
long as you could hire a good merchant banker and as long as the equity market was
buoyant, even small companies could get listed. The result has been a huge surge of listed
companies.
Current Entry-barrier: In 1995-96 the entry barrier was effectively raised to Rs 10 crore
of post issue-listing. At one stroke this eliminated a lot of companies from accessing the
public market. How many have a Rs 10 crore capital - among those who have not already
gone public during the free-for-all till 1995? Not many. As the security industry is highly
depends on capital market, so entry barrier of the industry is also decreasing.
Threat of Entry:
Factors that determine the threat of entry include capital requirements, economies of
scale, switching costs, and brand value and uncertainty about future.Brand identity is
important in the share broking sector, and benefits larger firms. Major broking firms
allocate considerable resources to marketing efforts. Frequent introductions of new
schemes and services and other incentives have been successful in enticing investors or
clients to trade with certain firms. These factors can often be strong enough to cause a
customer to choose one firm over another—even when the other firm offers a lower
brokerage charge.
• entry ease/barriers
• geographical factors
• incumbents resistance
• new entrant strategy
• rou
• alternatives price/quality
• market distribution changes
• fashion and trends
• legislative effects
CORPORATE STRATEGIES
KEY BUSINESS STRATEGIES
Their focus on the client has allowed Company and its subsidiaries to offer a range of
services that have changed the investing landscape and created a new model of financial
services that melds people and technology to provide an integrated human assisted
technology interface service for investors who range from self-directed full-time active
investor to those who prefer to deal with through a marketing associate in smaller towns
and cities.
1. Defend and maintain their differentiation as the firm that delivers ethical and useful
services.
2. Uncomplicated and not driven by commission.
3. Give clients’ new levels of choice tailored to their desire for help, tools for investing
their assets, their willingness
4. To pay for additional services and the level of business they can do with the company.
Provide clients with tools, relationship managers and choices that support their desired
investment outcomes. Religare has developed a client specific approach as a core element
of its business strategy and are constantly focusing on acquiring new clients and
expanding their customer base. They believe that the strong secular growth of the Indian
financial Markets, due to increased household penetration of financial assets; increasing
liquidity and market capitalization of Indian Markets, led by the listing of many public
sector entities; and the increasing affluence of Indian households and savers provides an
impetus to the growth perspective.
They believe that this diversification and growth strategy will continue to produce results
and allow Company and its subsidiaries to grow business at a rapid pace irrespective of
market conditions. In addition, management believes that the growth of the Indian
financial markets, due to increased household penetration of financial assets; increasing
liquidity and market capitalization of Indian markets, led by the listing of many
Public/Private sector entities; and the increasing affluence of Indian households and
savers, favors our long term growth outlook.
TOWS MATRIX
SO - Strategies WO - Strategies
ST - Strategies WT - Strategies
• Even the strong players in the market • To come up with flexible plans for
holds 6% of market share, so there is a investment.
good potential for growth. • To invest and develop technology.
• Improving on customer satisfaction.