EPGP - Corporate Strategy - 1
Final Project Report
BarclayCard - Business Unit Strategy
EPGP 06 – Section A: Group Details:
Aditya Mittal EPGP-06-005
Dhirendra Kumar EPGP-06-020
Pradeep Kumar Mishra EPGP-06-045
Ravi Agarwal EPGP-06-057
Table of Content:
1. Executive Summary
2. External Analysis
2.1. Porter 5 Forces
2.2. Pestle
3. Internal Analysis
3.1. SWOT Analysis
3.2. Industry Value Chain
3.3. Core Competence
3.4. US Market Position
3.5. UK Issuing Market Position
3.6. UK Acquiring Market Position
3.7. Commercial Payments Market Position
3.8. Barclaycard Financial Analysis
3.9. Ansoff Market Grid Analysis
4. Recommendations
4.1. Cost Leadership Strategy
4.2. New Market Development Strategy
4.3. New Product Development Strategy …show more content…
External Analysis:
2.1 Porter 5 Forces:
Supplier Power: The depositors stand as the direct suppliers to the bank. It offers premium services to the new customers, who have high bargaining power due to high value transactions. To remain attractive and competitive in the market, banks need to offer higher deposit rates to customers to remain attractive.
Buyer Power: When similar services are offered in the market by competitive firms, buyers get high bargaining power. Keeping the niche service offerings, Barclays captured the urban service offerings. It offers free credit-card along with e-banking and insurance to retain the customers.
New Entrants: Payment industry has immense potential for growth. There is a high competition among the product companies like Visa and MasterCard, there is a high risk of new entrants getting into the business and offer cost effective and more attractive services and offerings. On the other hand, this industry required huge investment for the new entrants.
Direct Competitors: The targeted segment for Barclaycard is providing niche and premium services to urban customers so they do not face direct rivalry with competitors. Otherwise, it would have faced direct rivalries in terms of price wars, innovations, advertisements and value added …show more content…
Following these standards is of utmost requirement in today’s world because of the financial scams that happened recently.
3. Internal Analysis:
3.1 SWOT Analysis:
Strengths • Pioneer in credit card industry
• Resource Leverage
• Boundary spanning – Mobile industry
• Global Brand and presence
• Financial Stability and profitable trend
Weaknesses • Lack of presence in emerging markets
• Due to recent scams / fines, brand image and reputation has damaged
• Lack of consistent customer satisfaction level
• Was focused only on the UK market for a long time initially
Opportunities • Scale of economy – IT Leverage
• US and Asia markets
Threats • Change in the consumer behavior
• Economic uncertainty – reduction in credit demand
• Rising unemployment – Increase in defaults
• Lack of systems to manage data and risks and frauds 3.2 Industry Value Chain:
The Barclaycard BU earns more than 70% of their income from interest charges. It even lends its own money to consumers and earn via interchange services and interest charges.
3.3 Core Competence:
It generates profit from 5 major areas:
Branded Cards In
Final Project Report
BarclayCard - Business Unit Strategy
EPGP 06 – Section A: Group Details:
Aditya Mittal EPGP-06-005
Dhirendra Kumar EPGP-06-020
Pradeep Kumar Mishra EPGP-06-045
Ravi Agarwal EPGP-06-057
Table of Content:
1. Executive Summary
2. External Analysis
2.1. Porter 5 Forces
2.2. Pestle
3. Internal Analysis
3.1. SWOT Analysis
3.2. Industry Value Chain
3.3. Core Competence
3.4. US Market Position
3.5. UK Issuing Market Position
3.6. UK Acquiring Market Position
3.7. Commercial Payments Market Position
3.8. Barclaycard Financial Analysis
3.9. Ansoff Market Grid Analysis
4. Recommendations
4.1. Cost Leadership Strategy
4.2. New Market Development Strategy
4.3. New Product Development Strategy …show more content…
External Analysis:
2.1 Porter 5 Forces:
Supplier Power: The depositors stand as the direct suppliers to the bank. It offers premium services to the new customers, who have high bargaining power due to high value transactions. To remain attractive and competitive in the market, banks need to offer higher deposit rates to customers to remain attractive.
Buyer Power: When similar services are offered in the market by competitive firms, buyers get high bargaining power. Keeping the niche service offerings, Barclays captured the urban service offerings. It offers free credit-card along with e-banking and insurance to retain the customers.
New Entrants: Payment industry has immense potential for growth. There is a high competition among the product companies like Visa and MasterCard, there is a high risk of new entrants getting into the business and offer cost effective and more attractive services and offerings. On the other hand, this industry required huge investment for the new entrants.
Direct Competitors: The targeted segment for Barclaycard is providing niche and premium services to urban customers so they do not face direct rivalry with competitors. Otherwise, it would have faced direct rivalries in terms of price wars, innovations, advertisements and value added …show more content…
Following these standards is of utmost requirement in today’s world because of the financial scams that happened recently.
3. Internal Analysis:
3.1 SWOT Analysis:
Strengths • Pioneer in credit card industry
• Resource Leverage
• Boundary spanning – Mobile industry
• Global Brand and presence
• Financial Stability and profitable trend
Weaknesses • Lack of presence in emerging markets
• Due to recent scams / fines, brand image and reputation has damaged
• Lack of consistent customer satisfaction level
• Was focused only on the UK market for a long time initially
Opportunities • Scale of economy – IT Leverage
• US and Asia markets
Threats • Change in the consumer behavior
• Economic uncertainty – reduction in credit demand
• Rising unemployment – Increase in defaults
• Lack of systems to manage data and risks and frauds 3.2 Industry Value Chain:
The Barclaycard BU earns more than 70% of their income from interest charges. It even lends its own money to consumers and earn via interchange services and interest charges.
3.3 Core Competence:
It generates profit from 5 major areas:
Branded Cards In