External Environment Analysis of Kiwibank Essay

2935 Words Jun 5th, 2013 12 Pages
1. Introduction In New Zealand, banks was established to serve the finacial need of people in the period of be settled by European. Nowadays, New Zealand is one of the most competitive and flexible banking industries in the world because of environment and banks’ strategic capabilities. In this assigment, the broad macro-environment that influences banking industry will be analysed through PESTEL framework and Porter’s five forces. There are large banks in New Zealand such as ANZ bank, BNZ bank, and Kiwibank; however, just Kiwibank are deeply analysed in this assignment. Moreover, through Porter’s five forces, there are identification and discussion of the relative importance for Kiwibank. Furthermore, the analysis of Kiwibank’s strategic …show more content…
Opportunities are to

help banks to develop their organization and simplify management. Threats are costly resources for trainning staff to approach new technologies and invest for changes of technologies. Moreover, those high-tech trends are key drivers of change. Banks catching up with those advanced technologies remain in this current competitive market. 2.1.5. Environmental New Zealand is a country of earthquakes because of being part of the Pacific Ring of Fire. This causes significant destruction to banks in New Zealand so banks have to look for effective solutions to reduce to minimum uncontrolled damages. This is the threat to banking industry, which is not easy to control because of coming from nature and not being predicted. However, because of earthquakes, people have tendency to made deposit to reserve their assets. If there are any damages, they still have reserve assets in bank. 2.1.6. Legal Banks in New Zealand have responsibility for pass all of the laws for banking industry such as the Reserve Bank of New Zealand Act, Companies Act, Commerce Act, Fair Trading Act, Credit Contracts Act, etc. All banks have to obtain licensed banks which are the type of financial institution. Moreover, to owe licensed banks, financial institutions have to meet high qualitative standard and simultaneously, they also accepted to be supervised by the Reserve Bank.


2.2. Porter’s five forces analysis 2.2.1. The threat of

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