Cash Connections current strategy is to distinguish themselves from other competitors. They want to gain the prime portion of the $40 billion dollars of paid lending that the US industry has to offer. To do this they must follow government restrictions and meet customer needs. One of their main targets is an unbanked/underbanked customer.
They problem is the company’s present strategy is not working that well. Over a three-year span, from 2007-2009 they have experienced a steady decline in net income. The have failed to distinguish themselves from their competitors. They have also failed to retain many exiting customers. SWOT ANALYSIS
High interest rates and roll over fees is a factor in the profitability of Cash Connection. They have the ability to offer short-term cash loans that banks’ cannot. They offer services to unbanked and/or underbanked individuals that are not a priority in banks’ business strategy. Two other important strengths are availability and convenience. A major weakness of Cash Connection is that it is hard for them to distinguish themselves in a major way from other pay day lending companies. An opportunity that may be out there is to expand its target market to include higher income consumers. Another potential opportunity is to expand and reach other potential cities. They also have an opportunity to expand their services and offer different things that other loans do not. The most apparent threat to Cash Connection is competitors increasing market share. Another external threat is current government regulations. Heavy regulations and bans on pay day lending have driven them into financial distress. A loyalty program would seek to produce a competitive edge by incorporating a feature that sets Cash Connection apart from its rivals, so that customers would consider his services more valuable. If the loyalty program increased their customer base it would then increase sales. Also by setting themselves apart from other payday loan...
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