Presidents Choice Financial Case Study Solution

Key Success Factors

The key success factors of the baking industry are essential to assure the future competitive success of the banking industry.

Technology:

In today’s technology and modern era; the banking industry could be benefited from the use of technology, which helps in lowering down the transaction cost and improving the product’s quality. It is considered a very significant element to support the sustainable growth of bank, and attracts the customers in the intense business competition.

Product Innovation:

As all the banks in the market have been offering similar sort of services to the customers; the differentiation and innovations are required for the future survival. It assures that the company would not lose its customer base and would most likely attract new customers towards them, with attractive product offerings.

Brand Image:

It plays a vital role in the selection of banks as the customers prefer to choose the bank with huge resources and increased market share. The brand awareness and market share is one of the major concerns for the customers within the banking industry.

Competitive Analysis:

Scotia bank:

Strengths:

• Subsidiary of ING group, which falls under the category of 10 largest financial service providers in the world.(Needham).
• Offers a business account service for its clients.
• Low operating cost as it has single office in Canada and no branches.
• Low expenses allows it to offer higher interest rate to their account holders as compare to competitors
• ABM networks are available at various places such as shell, 7-eleven, Cineplex cinemas and others.

Weakness:

• It doesn’t provide its services at stores as PC financials provides.
• Doesn’t provide the service of registered account, such as RESP, LIRA ETC.
• In 2008 it discontinued some of its operations.

Ally bank:

Strengths:

• Different product offering than their competitors.

Weakness:

• Offer low interest rate to their clients.
• Offering very few products as compared to other market competitors.

Club Sobeys:

• Offering high interest rate.
• Provide its services in both via store and ABM.
• Not offering a variety of services to its clients.

Strategic Alternatives

The set of strategic alternatives are suggested in accordance with the fierce market competition, changes in regulations and substitute’s service availability. The alternatives are suggested below;

Revamp Marketing Strategy:

PC could concentrate on its efforts in re-establishing the brand identity and build a relationship between brand to the customer, loyalty and trust. The pros and cons of re-establishing the brand identity are discussed below:

Pros

1. The company would be re-focus on motivation, brand loyalty associated with brand.
2. The company would feel that they have a desire to be a part of loyalty program.
3. It would promote loyalty, trust and relationship with the brand.
4. It would allow the company to segment customer & discover unprofitable and profitable customers.
5. It would help in retaining the existing customers.
6. Having an online platform would most likely elevate Loblaw and its sub-brands in modern era where the customer prefer to shop online than from physical store or outlet.

Cons

1. It demands extra efforts in setting up and maintaining it.
2. The company need to ensure that the loyalty programs are distinguishable and unique than that of competitors.
3. The discounts through loyalty programs could hurt the company’s bottom line.

E-Commerce Customer Services:

Focusing with concentration in meeting the former needs of the customers to deliver complete satisfaction with development of possibilities to regain the potential customers.

Pros

1. E-commerce customer services requires low cost of investment.
2. Potentially known to speed up the operational services saving time by providing services at their convenient time.
3. It significantly allows the organization to provide its services in new regions as it eliminates the excessive need of physical appearance.
4. An easy approach of retargeting customer base through coupons after check-out, providing sales and promotions through e-mail.

Cons

1. Creates a sense of lack of surety about the services provided by the firm in the minds of customers.
2. Lack of interaction with their potential customers with intensive growth of competition making it difficult for the organization to stand out.
3. Threat of security to customers regarding their personal information provided to bank for their efficient services such as name, address, contact number etc.

Public Relations:

The public relation helps in building the strong relationship with the customer base.The pros and cons of building public relation are provided below:

Pros

1. Positive influence on the organization by the audience as they are more likely to trust on new from objective source despite from paid-for advertisements.
2.  It is a low cost approach in comparison to other promotional strategies implemented by organization for improved awareness of their brand.
3. A campaign of public relation which is well-structured provides ease in targeting their potential market with increased opportunities of providing information.

Cons

1. It lacks control over how your information is being portrayed in the market, which might be against your expectations.
2. The measurement of the effectiveness of the outcome of public relation tends to be difficult.
3. Lacks no guarantee of the potential result, leading to poor performance and decreased return on investment.

Recommendation Actions and Implementations:

On the basis of above analysis and evaluation of all the alternatives the PC Financials is to recommend the select the first alternative strategy, which is revamping market strategy.According to the revamping of the market strategy; the company deals in so many products as compared to its competitors so it has to acknowledge its customers about its existing products and services, and should also provide each services under one roof. They have to run extensive branches in order to provide easy access to their customers and provide the more and more products and services.However it has some cons like managing their various products and services makes it difficult for the company to manage multitasks at some time and it also does increase the cost of doing business, which ultimately effects on their revenues. However the company can use the second strategy as a backup plan.

Appendices:

Appendix: 1

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