Competitive Advantages Analysis of Kiwibank
Table of Contents INTRODUCTION 2 ENVIRONMENTAL ANALYSIS 2 PESTEL Framework Analysis 2 Michael Porter 5 forces analysis 4 Discussion further from the environmental analysis 7 STRATEGIC CAPABILITIES ANALYSIS 8 Strategic capabilities identification 8 Discussion from the Strategic Capabilities Analysis 11 Recommendation for long-term development 11 CONCLUSION 12 REFERENCES 13
INTRODUCTION
Banking industry in New Zealand is a developed industry and has a long time history of being dominated by foreign-owned firms. This assignment will provide an overview of banking industry via two analyses, which are PESTEL Framework Analysis and Michael Porter Five Forces Analysis. In particular, the case of Kiwibank within the competition with other banks will be provided. Strategic capabilities and reacting strategies of Kiwibank are also identified, assessed through VRIN criteria, and discussed their feasibility. Finally, recommendations for Kiwibank sustainable development are also suggested in this assignment.
ENVIRONMENTAL ANALYSIS
PESTEL Framework Analysis
PESTEL framework analysis provides an overview of the macroeconomics conditions that affecting the banking industry in New Zealand. Five main factors forming PESTEL diagram are Political, Economic, Socio-cultural, Technological, Environment and Legal ones. However, based on the provided information in the case study, just three of them will be clarified next.
Political
Since 1992, New Zealand government (National Party particularly) has followed a non-involvement strategy in banking. The advantage of this is that banks can be free from the interference of government in long-term plan or internal operation strategy. In some cases, there are no longer any nationalization activities from the government, both expropriation and confiscation. Nonetheless, the banking activities are not under control, being floated and small banks have no subsidies to recover their balance statement if there
INTRODUCTION
Banking industry in New Zealand is a developed industry and has a long time history of being dominated by foreign-owned firms. This assignment will provide an overview of banking industry via two analyses, which are PESTEL Framework Analysis and Michael Porter Five Forces Analysis. In particular, the case of Kiwibank within the competition with other banks will be provided. Strategic capabilities and reacting strategies of Kiwibank are also identified, assessed through VRIN criteria, and discussed their feasibility. Finally, recommendations for Kiwibank sustainable development are also suggested in this assignment.
ENVIRONMENTAL ANALYSIS
PESTEL Framework Analysis
PESTEL framework analysis provides an overview of the macroeconomics conditions that affecting the banking industry in New Zealand. Five main factors forming PESTEL diagram are Political, Economic, Socio-cultural, Technological, Environment and Legal ones. However, based on the provided information in the case study, just three of them will be clarified next.
Political
Since 1992, New Zealand government (National Party particularly) has followed a non-involvement strategy in banking. The advantage of this is that banks can be free from the interference of government in long-term plan or internal operation strategy. In some cases, there are no longer any nationalization activities from the government, both expropriation and confiscation. Nonetheless, the banking activities are not under control, being floated and small banks have no subsidies to recover their balance statement if there
References: Krupp, J. (2013, January 23). Insurance premium rises likely to ease up. Retrieved April 2013, from http://www.stuff.co.nz/business/money/8210092/Insurance-premium-rises-likely-to-ease-up Reserve Bank of New Zealand. (2008). Key information summaries of locally incorporated banks, December 2008. Retrieved April 2013, from Reserve Bank of New Zealand Homepage: http://rbnz.govt.nz/statistics/banksys/g1/data.html