I take pride in making people’s lives that little bit easier. I take pride in making people’s lives that little bit easier.

Slides:



Advertisements
Similar presentations
Company Analysis.
Advertisements

Industry Analysis – Firm performance is closely tied to industry performance – a firm’s profitability is circumscribed by industry profitability and the.
Team 5 Ashley Gonzenbach Diana Perkins Brian Byrne Amanda Long.
ranchless Banking First Direct : B ranchless Banking.
2 External Analysis: The Identification of Industry Opportunities and Threats.
Industry and Competitive Analysis
Presented By:- Dharm Jeeta Singh
COMPETITIVE STRATEGY - Dolly Dhamodiwala.
EVALUATING A COMPANY’S EXTERNAL ENVIRONMENT
Lecture 2 External Environment Analysis & Globalisation.
Porter’s Five Forces Model of Competition
Launching a New Product Dr. Carol Gwin Baylor University July 14, 2005.
Industry Analysis: The Mobile Phone Industry Strategy and International Business.
from Competitive Advantage: Creating and Sustaining
Competition. Direct Competitors - Firms likely to gain or lose a substantial share of customers from each other over time because they serve the same.
2 Chapter 2: External Analysis: The Identification of Industry Opportunities and Threats BA 469 Spring Term, 2005 Professor Dowling.
2 External Analysis: The Identification of Industry Opportunities and Threats.
1 Industry Analysis Business Plan Preparation Frank Moyes Leeds School of Business University of Colorado Boulder, Colorado.
Strategic Plan for Bank of America By L.Ray Executive Summary 19.6 million online customers Over 5000 branch locations Acquisition of MBNA.
1 Industry Analysis Business Plan Preparation Frank Moyes Leeds School of Business University of Colorado Boulder, Colorado.
Conducting an Industry Analysis. Seven Questions for Industry Analysis 1. What are the industry dominant economic traits? 2. What competitive forces are.
Presentation Presented By: Passion of Finance STRATEGIC GOALS OF COMPANY To be the best & quality brand. To build mutual trust with consumers, governmental.
Porter’s Five Forces Analysis
The Marketing Environment and Competitor Analysis
Strategic Management Process
Chapter 3 International Expansion Strategies. International development phases Phase 1: Initial market entry Phase 2: Local market expansion Phase 3:
Strategic Planning Chapters 8: Competition. The Marketing Plan Marketing Strategy Product Promotion Distribution Price Marketing Mix Business Mission.
3-1 © 2006 by Nelson, a division of Thomson Canada Limited 9/12/2015 Slides developed by: Peter Yannopoulos Chapter 3 Situational Analysis and Strategic.
IT Strategic Planning.
SUNY - UB – International Collaborations Presented by Group 3.
The Strategy Environment Session 2 Business Strategy.
Chapter 9 Designing Strategies Management 1e 9- 2 Management 1e 9- 2 Management 1e Learning Objectives  Explain how businesses use planning to.
SWOT ANALYSIS.
Chapter 2 --Market Imperfections and Value: Strategy Matters u Wealth creation is impossible in a perfect market u Porter’s five forces can be used to.
3. Competitive Forces Model Companies must contend with five competitive forces which you need to analyse (Figure 4-6) : 1Threat of new entrants 2Bargaining.
External Analysis Macro-Environment
Supply Chain and Competitive Advantage
Chapter 2 --Market Imperfections and Value: Strategy Matters u Conditions necessary for a perfectly competitive product market and resource market: u No.
Kelley Fall 2001 Marketing Management1 Questions to Structure Competitor Analysis Who are the competitors? Who are our most intense competitors? Who are.
PESTLE vs. SWOT In contrast to a SWOT, PESTLE encourages you to think about the wider environment and what might be happening now and in the.
Business Strategy and Policy
©2004 by South-Western/Thomson Learning 1 The External Environment: Opportunities, Threats, Industry Competition, and Competitor Analysis Robert E. Hoskisson.
ANALYSING THE BUSINESS ENVIRONMENT Failing to plan is planning to fail! The only constant in the modern world is change!
Question #3:   WHY IS IT NECESSARY TO PERFORM AN EXTERNAL AND INTERNAL ANALYSIS BEFORE THE FIRM CAN IDENTIFY ITS TRUE CORE COMPETENCIES? Group #2: M981Y207:
1 Chapter 5 Defining Service Strategies 1 Chapter 5 DEFINING SERVICE STRATEGIES McGraw-Hill/Irwin © 2003 The McGraw-Hill Companies, Inc., All Rights Reserved.
CH 2 STRATEGY ANALYSIS. Strategy Analysis Strategy analysis is an important starting point for the analysis of financial statements –Allows the analyst.
The Marketing Environment and Competitor Analysis
Chapter 6 Analyzing the Industry and Market. Copyright © Houghton Mifflin Company. All rights reserved.6 | 2 Learning Objectives Explain the industry.
THE EXTERNAL ENVIRONMENT Chapter 2. The Organization Owners & Directors Managers Employees The Task Environment Gov’t agencies Competitors Unions Suppliers.
Click to add text Principles of Marketing Fall 2013 Lecture Slides 3 Instructor : RAZA ILLAHE Lahore Leads University.
Theories on Strategy IT & Business Models Chp. 3.
COMPETITIVE ADVANTAGE UNIT – II. EXTERNAL ENVIRONMENT Any organization before they begin the work of strategy formulations, it must scan the external.
Michigan State University Global Online. The Structural Analysis of Industries Forces that Determine Industry Profitability Rivalry among current competitors.
STRATEGIC MANAGEMENT II Porter’s five forces module.
F Designed to give you knowledge and application of: Section B: Key environmental influences & constraints on business & accounting B1. Political.
Porter’s Competitive Forces
Porter's Five Forces A MODEL FOR INDUSTRY ANALYSIS
BUS662 SMALL BUSINESS CONCEPTUAL ISSUES. Learning Outcome: To conduct environmental analysis and thereby analyse requirements of a strategic Chapter 3:
Creating Business Advantage with IT
The external environment
The Marketing Environment and Competitor Analysis
YOUR LOGO YOUR COMPANY NAME COMPETITIVE ANALYSIS.
Strategic Management B O S.
The external environment
Janet Cookson, Eva Zaman, Faiza Ejaz, Grace Odom, & Jonathan Bryson
STRATEGIC ANALYIS OF BUSINESS
Industry and Market Analysis
11:00 am Miller Peaden, Richard Kelly, Andy Rogers, Bowie Wynne
Michael Porter’s Five Forces Model.
Strategic Analysis.
Presentation transcript:

I take pride in making people’s lives that little bit easier. I take pride in making people’s lives that little bit easier.

fd fd TM (First Direct) : Branchless Banking Group 2B FT 2005 Simone Huijs / Suraj Basnet / Ken Kodaka / Eugene Kolesnikov / Joan Moreau / Piercarlo Oddone Rotterdam School of Management Erasmus Graduate School of Business

Agenda 1.Case summary 2.Business model 3.Competitive advantages 4.Current Challenge (1996) 5.Strategic Recommendations 6.Case update

Case summary 1988 : Market trend : Downsizing and cost reduction Midland Bank was the 4 th largest bank in UK A significant proportion of customers were reluctant to visit branch offices, dissatisfied with banking hours 1989 : Starting of First Direct, usin g Midland network Telephone banking, opened 7/7, 24/24, Branchless Characteristics : No differentiation in products, but only in service Rivalry in B2C banking market 1989 – 1996 : Fast growth Fast consistent growth Trained experienced employees in telephone services High Quality and Reliable image

Business model PEST Analysis Political Deregulation in banking ↓ Many New entrantsEconomic Over capacity Downsizing ↓ Low profitability Social More wealthy people Increased mobility Increased demand for better servicesTechnology Improved computing Automation Personal computer Improved telecoms

Business model Distance direct banking Low cost 24/7 operation Staff & Technology Personalizedefficient friendly service 24/7remoteconvenienceAttractivebankingproducts Customers Company

Business model Sustainability More customers Investment in training Commitment culture Prominent reputation and brand Image Revenue growth Providing high quality service

Competitive advantages -> Value Services: Availability (anywhere / anytime) Personalized, friendly, and high quality Responsiveness - Less interface Products: Free or lower fees for financial products Customers Value Value Speed Company Competitors Cost Speed

Competitive advantages -> Cost By reducing process time New technology (ACD, Database) Competent staff (Training system) By office Low rental office fee Smart use of office space Sharing infra with HSBC Customers Value Speed Company Competitors Cost Cost Speed

Competitive advantages -> Speed First mover advantage Culture of continuous improvement Short time marketing of new products Customers Speed Value Speed Company Competitors Speed Cost Speed

Current challenges (1996) 5 forces analysis Bargaining power of buyers + Many banks offer remote services Threat of new entrants +Low capital requirements +No legal or patent barriers Threat of Substitutes + Internet Banking + Increased experiences in remote services Bargaining power of suppliers -Many IT providers -Market deregulation Industry rivalry +Many competing banks and other companies

Current challenges (1996) Segmentation analysis Age Social status High Low Big 4 Banks First Direct Potential Stretch Area

Current challenges (1996) SWOT analysis Strengths Brand image Experience and know-how Competent staff -Prominent training program Weaknesses Fast growth : Undermining company culture and consistency in services No diversification in its distribution channel Opportunities New remote technology – internet Additional financial products Improve advertising approach Potential to expand customer base Threats Increased competition New substitutes based on internet Competitors’ use of technology More sophisticated customers

Need for person to person communication remains There competitive advantage – strong brand image in telephone banking (Base Analysis: SWOT, Value-Speed-Cost Analysis) Maintain current business model and its superior service level Strategic recommendations

Increase service value for existing customers and attract new customers that use computers (Base Analysis: SWOT, 5forces) Introduce online banking

Strategic recommendations Potential 10 million customers in UK Existing infrastructure for economies of scale Proven services to attract conservative customers (Base Analysis: SWOT, Segmentation analysis, 5 forces) Aggressive customer acquisition in UK

Strategic recommendations For Students Offer student loans, health insurance, personal liability For elder people Saving funds for grandchildren, life insurance Expand range of financial products to attract new target customers

Case update FD today Grown by 56% to 1 Million of customers High customer satisfaction (85%) Additional channels – internet and mobile phone Increasing range of financial products 10,000 new customers every month

the more of our services you use, the more sorted you are. the more of our services you use, the more sorted you are. Any questions ? Any questions ?