Assessment of Santander Consumer Finance’s Approach to Its International Strategy
Assessment of Santander Consumer Finance’s approach to its international strategy
In this report I provide a critical assessment of Santander Consumer Finance’s (SCF) approach to its international strategy. In the first part, I analyse SCF’s external environment by highlighting its history and business model and also by applying Porter’s five forces model. I follow by analysing SCF’s internal environment focusing on its structure and applying the resource based view model. I finish with a critical assessment of SCF’s strategy. In the second part, I evaluate SCF’s managerial implications by highlighting its strengths, weaknesses and potential solutions. Finally, I present some recommendations for SCF’s future strategy.
I. Introduction (Part A)
SCF is a subsidiary company of the Santander Group. This company started out as a small initiative that at the time of its creation was not expected to grow and transform into one of the most profitable units held by the group (Santander Consumer, n.d.). The company grew under the vision and leadership of its former Chief Executive Officer Juan Rodriguez Iniciarte and became the key player in the market for consumer finance. However, its journey to success is marked by the struggle against the market players and macroeconomic factors. A complete analysis of SCF’s international strategy can be broken down into three major portions:
- External analysis
- Internal analysis
- Critical assessment
II. Analysis of SCF’s strategy
A. External analysis
In order to evaluate SCF’s external strategy, let’s try first to understand SCF’s business model and look back at its history. Then, we will scan its external environment by using Porter’s five forces model which consists essentially in evaluating SCF’s ability to manage these forces, to overcome weaknesses exposed by these forces or to take advantage of opportunities offered by the alignment of these forces (B835 – Unit 2).
a. SCF’s history and business model
In this report I provide a critical assessment of Santander Consumer Finance’s (SCF) approach to its international strategy. In the first part, I analyse SCF’s external environment by highlighting its history and business model and also by applying Porter’s five forces model. I follow by analysing SCF’s internal environment focusing on its structure and applying the resource based view model. I finish with a critical assessment of SCF’s strategy. In the second part, I evaluate SCF’s managerial implications by highlighting its strengths, weaknesses and potential solutions. Finally, I present some recommendations for SCF’s future strategy.
I. Introduction (Part A)
SCF is a subsidiary company of the Santander Group. This company started out as a small initiative that at the time of its creation was not expected to grow and transform into one of the most profitable units held by the group (Santander Consumer, n.d.). The company grew under the vision and leadership of its former Chief Executive Officer Juan Rodriguez Iniciarte and became the key player in the market for consumer finance. However, its journey to success is marked by the struggle against the market players and macroeconomic factors. A complete analysis of SCF’s international strategy can be broken down into three major portions:
- External analysis
- Internal analysis
- Critical assessment
II. Analysis of SCF’s strategy
A. External analysis
In order to evaluate SCF’s external strategy, let’s try first to understand SCF’s business model and look back at its history. Then, we will scan its external environment by using Porter’s five forces model which consists essentially in evaluating SCF’s ability to manage these forces, to overcome weaknesses exposed by these forces or to take advantage of opportunities offered by the alignment of these forces (B835 – Unit 2).
a. SCF’s history and business model
References: (Accessed 15th November 2012). Reuters (2012/03/06), Bank of Beijing Co., Ltd., Banco Santander SA Partner On Consumer Financing [online], http://www.reuters.com/finance/stocks/601169.SS/key-developments/article/2496130 (Accessed 15th November 2012). The Open University (2012) B835 Strategy, Unit 2, ‘Understanding the industry environment’, Milton Keynes, The Open University The Open University (2012) B835 Strategy, Unit 3, ‘The evolution of the RBV’, Milton Keynes, The Open University. Trumbull, G., Corsi, E., Barron, A. (2010), Santander Consumer Finance, Harvard Business School, 13th December 2010 Santander Consumer (n.d.), Our History [online], http://www.santanderconsumer.com/ (Accessed 28th October 2012). (Accessed 28th October 2012).