Cash Connection
Cash Connection
Payday Loans
Strategy, Ethics and Forces
1. What is Cash Connections strategy? * Differentiate itself from competitors to gain the largest piece of the $40 billion dollars of paid lending that the United States industry has to offer, while adhering to government restrictions and meeting customer’s needs.
Reference: Thompson, Peteraf, Gamble, and Strickland. P. (2010). Crafting and Executing Strategy: The Quest For Competitive Advantage Concepts and Cases (18th ed.). Page, C-114.
Which of the five generic strategies discussed in Chapter 5 most closely fits the competitive approach that Cash Connections is taking? * I choose a broad differentiation strategy as a best fit. Allen Franks seeks to produce a competitive edge by incorporating attributes and features that set his payday loan company apart from rivals in ways that buyers consider his services more valuable. Successful differentiation will allow his firm to: * increase sales by increasing customer base and * increase brand awareness. Since the market is diverse, Cash Connections has the ability to broaden its horizons through the use of differentiation.
Reference: Thompson, Peteraf, Gamble, and Strickland. P. (2010). Crafting and Executing Strategy: The Quest For Competitive Advantage Concepts and Cases (18th ed.). Page, 136.
2. Is the company ethical or unethical - provide detailed evidence.
I feel there are arguments for both sides. “Rolling over Debt” and “Touch and Go” practices along with the insanely high interest rates and target market (low-middle class segments) makes me lean towards the unethical side. Why is it that these creditors do not check their customers’ credit history? Because the majority of payday borrowers have an income problem and usually have bad credit, no access to credit or have current credit that is “maxed out.” Like Spiderman’s spider sense my sense of morals tingles when I think about payday loans. I am all for
Payday Loans
Strategy, Ethics and Forces
1. What is Cash Connections strategy? * Differentiate itself from competitors to gain the largest piece of the $40 billion dollars of paid lending that the United States industry has to offer, while adhering to government restrictions and meeting customer’s needs.
Reference: Thompson, Peteraf, Gamble, and Strickland. P. (2010). Crafting and Executing Strategy: The Quest For Competitive Advantage Concepts and Cases (18th ed.). Page, C-114.
Which of the five generic strategies discussed in Chapter 5 most closely fits the competitive approach that Cash Connections is taking? * I choose a broad differentiation strategy as a best fit. Allen Franks seeks to produce a competitive edge by incorporating attributes and features that set his payday loan company apart from rivals in ways that buyers consider his services more valuable. Successful differentiation will allow his firm to: * increase sales by increasing customer base and * increase brand awareness. Since the market is diverse, Cash Connections has the ability to broaden its horizons through the use of differentiation.
Reference: Thompson, Peteraf, Gamble, and Strickland. P. (2010). Crafting and Executing Strategy: The Quest For Competitive Advantage Concepts and Cases (18th ed.). Page, 136.
2. Is the company ethical or unethical - provide detailed evidence.
I feel there are arguments for both sides. “Rolling over Debt” and “Touch and Go” practices along with the insanely high interest rates and target market (low-middle class segments) makes me lean towards the unethical side. Why is it that these creditors do not check their customers’ credit history? Because the majority of payday borrowers have an income problem and usually have bad credit, no access to credit or have current credit that is “maxed out.” Like Spiderman’s spider sense my sense of morals tingles when I think about payday loans. I am all for