1. CREDIT SUISSE GROUP AG:
STRATEGY
Strategic Management (STMT)
Prof. Mahesh Narayan Goutham K S
Term 3
2011-13 11214
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2. Headquarters Zurich, Switzerland
Year of 1856
foundation
Employees 49,700
Reach 405 offices in 55 countries
Listings SIX(Switzerland) and NYSE
Ratings Standard & Poor – A
Moody – Aa2
Fitch - A
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3. Our aspiration is to become one of the world's most
admired banks. We believe our ability to serve clients
globally with solutions tailored to their individual
Vision
needs is a strong competitive advantage.
We pursue a client-focused integrated bank
strategy, focusing on complex client needs and
value-adding businesses, leveraging the global Strategy
expertise of our three divisions, Private
Banking, Investment Banking and Asset
Management.
Building on the momentum we have established, we
aim to further grow our client business with gains in
market share and a strengthened geographic Priorities
footprint.
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4. Political Economical
Antipathy towards foreign • Recessionary phase
banks • Stringent economic policies
worldwide – Basel III
Social Technological
Emerging economies uses Leveraging of technology
non-banking financial services for banking solutions
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5. Strengths Weaknesses
• Part of ‘bulge bracket’
• Strong franchises in core • Poor publicity and brand
business visibility
• Sufficient liquidity and strong • Low performance in investment
capital base banking
• Wide global reach • Weak expense management
• Merger of private banking impacting margins
operations
SWOT
Opportunities Threats
• Growing forex market • Global economic
• Buoyant Asset management slowdown, especially Europe’s
• Expansion in emerging •Stringent economic policies over
economies the world
• Intense industry rivalry
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6. • Strong franchising can help in entering emerging
SO economies
• Strong capital base can aid in capturing growing forex
Strategy market and buoyant asset management
ST • Good position in liquidity and capital base can help pass
through recessionary phase
Strategy
WO • Better publicity can be used when entering new market
• Low performance of the company is in Investment Banking
Strategy but asset management and forex market is growing
WT • Recession and/or intense competition coupled with weaker
control cost should not drain away the revenues
Strategy
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7. - High for low brackets and low
Threat of for higher brackets.
- Many entrants after
Entrants
liberalization policies across
globe
High. Some of Low due to
the divisions of -Good sense of
Industry
banking are Suppliers Buyers brand loyalty
competitors
mainly based on - Quality
relationships conscious
Intense rivalry
impacting margins
High due to non- Threat of
banking finance Substitutes
companies offering
similar services
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8. Porter’s Diamond with context to India
Numerous public sector
Credit Suisse is located banks, and private sector
in India at Mumbai and Firm Strategy banks post liberalization
New Delhi and Rivalry
- Robust and - Rise of High net
stable market Factor Demand worth companies
- Antipathy of RBI conditions conditions and individuals
towards foreign - Unexplored
banks financial inclusion
services
Related and
supported Mature capital
industries market – BSE & NSE
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9. Lower Cost Uniqueness
Broad Position of
Target Credit Suisse
Generic Competitive
Scope
Strategy
Narrow
target
Competitive Advantage
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10. Size of the box is proportional to
significance level of function
Firm Infrastructure
Human Resource
Technology Development
Operations Marketing Service
& Sales
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11. Horizontal Strategy
1978 Strategic alliance with First Boston
1987 Acquisition of stockbrokers Buckmaster & Moore
1988 Controlling stake in First Boston
1990 Acquisition of Bank Leu
1993 Acquisition of Swiss Volksbank
1994 Strategic alliance with Swiss Re
1995 Strategic alliance with Winterthur group
1997 Merger with Winterthur group
2000 Acquisition of Donaldson, Lufkin & Jenrette
2006 Divests Winterthur and retires First Boston affiliation
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12. One Bank Model
What ? Investment Banking, Wealth management, Asset
Management and Private Banking all under one roof.
When ? Adopted in 2006
Why ? One stop solution for Ultra High Net worth (UHNW)
businesses
How ? Referrals from one division to another. e.g. Investment
banking division refers its client of M&A to private banking division
Risky ? Yes, especially during downturns. Probably only
successful company using this model. All its Competitors have
separate divisions.
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13. Branding
Advertising initiative was taken to shed its
poor visibility
2001-2005: Majority shareholder in Sauber F1 team
2006-2009: Active Sponsor of then BMW-Sauber
Sponsor of Switzerland national football team
Sponsor of Roger Federer
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14. References T
www.credit-suisse.com
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