The corporate social responsibility CSR is a program which shows the responsibility of the organizations in the society for the extension of the contributions for the social, economic as well as the environmental development of the society. It is also known as corporate responsibility, which is responsible for the self-regulation integrated within the business model. Furthermore, the corporate social responsibility consists of the right of stakeholder, rights of employee, community relations, and protection of environment, corruption as well as the transparency.

Competitive Advantage

On the other side, the competitive advantage is generally considered that the company holds trumps in the capacity, resources, as well as the value developed for the potential customers, for the market shares as well as the level of the profit and so on. Any current or potential competitors are not implementing a strategy for the value creation simultaneously to hold a competitive advantage. The low costs are comprised of the competitive advantages for the energy and the raw materials, efficient technological production as well as the locational advantages. There are some opportunities mention here for the competitive advantages which have been derived from the following implications, such as the information as well as the regulation.

The relationship between corporate social responsibility and Competitive Advantage

In a win-win situation, the enhanced competitiveness, as well as the objectives for the improvements of the environment, can be combined. There is no kind of agreement that can show the relationship of the competitive advantage as well as corporate social responsibility. But on the other side, the relationship is analyzed among the stakeholders and corporate social responsibility. A module of corporate social responsibility must participate in the competitive advantage that was formed. The study or discussion is all about what is corporate social responsibility as well as the competitive advantages, and what relationship of them is as well as how we can use corporate social responsibility to generate competitive advantages.

The link between the corporate strategy, social responsibility, as well as the competitive advantage, is that the information has been provided by some companies that use the companies for the development of the competitive advantage. Therefore, various factors exist which are very influential on this relationship like the relationship with the stakeholders, internal resources, the competitive context as well as the external environment, the values of the organization as well as the philosophies of the expectations of the community and top management. It future imperial studies, it should address this kind of factor for seeking to take a better understanding of the governing the strategic management influences of social responsibility.

A framework for the strategy of the corporate social responsibility was enlisted like a significance of the construction for main question, consideration of the basic value elements, the importance of the stakeholders as well as taking a better understanding of the links, and the analysis on the opportunities, skills as well as the internal resources within the industry structure and the external environment. While the competitive advantage which stops from social responsibility may be seen by using the influence directly on the resources, the formation, development an improvement in the image and the reputation, the value of aggregation, the motivation of the employee, the exceptional people’s retention as well as the better performance of economy are provided. The providers of these things are the innovative and the efficient projects, better social improvements and the performance, better environmental performance, the strategy for the corporation as well as the social responsibility which aligned with the strategy of the corporation in the corporate governance.

Moreover, the strategies of corporate social responsibility can resolve the existing rigidity among the profitability as well as the objectives of corporation or the organization. It is very significant for the organizations in the sense of the actions of the strategy of the social responsibility that can bring progressive results within both of the social terms as well as the economic terms. It should address further related things, such as the expansion of social responsibility with the intention. So, the researchers did show the presence of the linkage among the corporate social responsibility and the competitive advantage.

Question 2.

How powerful are the buyers, suppliers, and substitutes? How formidable are the barriers to entry and how intense is the rivalry among existing firms?

The chosen company from the Middle East is Saudi Telecom Company. I have applied porter’s five forces model on the company to see how powerful the buyers, suppliers and other substitutes. I have applied the porter’s five forces model on the company because it is the framework that was specially established to see the competition of any business in the market. The main tools of the model are the competitive rivalry, power of the suppliers, power of the buyers, threats from the new entrants as well as the threats of the substitutes.

In 2005, Saudi Arabia did become a member of WTO and established the market of Saudi Telecommunication Company to foreign competitors. The market of Saudi Telecom did become very competitive in the market. There are many competitors for Saudi Telecom Company and the names are Portugal Telecom, Chunghwa telecom, American Movil, mobile TeleSystems and so on.

The buyers, suppliers, and the substitutes are very powerful of Saudi Telecom Company. First of all I will make a discussion on the topic of the powerful buyers of the company and see how much power they are. The power of the buyers of the existing company is approximately 59.4% of the population of the Saudi company which is between 15 to 64, along with the capital GDP around $ 21,300. The customers of the company demand the services which are high in quality and very feasible in the price. The shifting costs on the services are negligible to zero as the power of the buyers is moderate that can go high. So the power of the customers will remain high.

Power of Suppliers.

The power of suppliers is the companies such as the network equipment providers that provide the network-related or communication related solution to the Saudi Telecom Company. You can understand it with the help this information, which tells that whenever a customer or buyer makes a call to communicate others, surfing the internet, joining a conference call through the internet protocol TV, the whole technology and services are provided by the network equipment providers. So the suppliers are very powerful in the market which effectively supplies their equipment and services to the existing company and other companies.

Power of Substitutes

The powerful substitutes of the company considered as the satellite phones. The satellite phones are considered the threatening factors which affect the mobile market. The satellite phones are more powerful because it is led by the innovation for more functionality in the satellite phones with the probable introduction on the satellite internet. So the satellite phone is very impactful on the market and especially on the Saudi Telecom Company in the sense of competitive scenario. It is very powerful in the market, which can grab the high market share as well as many customers of the existing company can lose the potential customers.

Which of the forces has the biggest impact on the firm? Why

There are some forces that have a very powerful impact on Saudi Telecom Company. By applying the porter’s five forces competition model, we have successfully analyzed the forces which are impacting the company as well as are very threatful for the company. After applying the porter five forces model, I have found most impactful force is the power of the suppliers. As mentioned above the network equipment providers are providing the services which are helpful to make online calls and internet surfing. If they stop or increase their service prices, the company will have to pay extra. In another scenario if the company stops the supplies then company will also have to buy the equipment services at any price or in the case of lack of resources, the existing company can face very difficulties to conduct its business. So the force such as the power of the supplier, in this case, is very impactful on the company. It is only reason which makes the power of suppliers more impactful.