Report on EGG PLC.: SWOT Analysis and Recommendations

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Abstract

This is a report into the Egg plc - an online financial services company. It focuses on SWOT analysis and gives recommendations in term of financial services marketing in order to improve performance of its business.

Contents

I. Introduction

II. SWOT analysis of Egg plc

III. Conclusion

IV. Theories

V. Recommendations

VI. References

I Introduction

Egg plc is an e-commerce company created by Prudential (the UK-based financial services company) and is one of Europe's leading digital financial services providers, offering banking, insurance, investments, mortgages and a shopping portal through its Internet site and other distribution channels. Furthermore, the Company is committed to expanding into any area where it feels it can offer a great service and real value for customers.

Launched in 1998 and has been listed on the London Stock Exchange by June of 2000, Egg has already gained 3 million customers and has over 2000 employees working from offices its call centres in Derby and Dudley, and offices in London, Paris and Tours. According to latest findings from Nielsen Net Ratings, the independent web audience monitoring company, Egg plc is the world's largest pure online bank, currently attracting more than 1 million unique visitors per month.

II SWOT analysis of Egg plc

Strengths

As the youngest of the Prudential brands and the pioneer of e-commerce in the UK financial services sector, Egg follows in the Prudential tradition of innovation in financial services. One of the company's greatest strengths is "branchless" banking services experience. Prudential Banking was set up in 1996 to provide retail banking services to customers via post and telephone. In 1998 Egg, a radical new direct banking service on the Internet was launched, as a response to rapid changes in technology. With the advantage of its "branchless" customers services over other high street retail banks attempting into the range of internet banking, Egg has been developing quickly and gained high brand name recognition. Within six months of launch Egg had reached its initial five year target of attracting £5 billion in deposits and 500,000 customers. In June 2000, an Initial Public Offering of just over a 20% share of Egg was made, enabling it to maximise the potential for growth both in the UK and internationally. Rapid customer growth has enabled Egg to fulfil its commitment to break into profitability by the end of 2001, and www.egg.com is now the busiest financial services website in the UK. Today, as a result, Egg card accounts for five percent market share of total card balances in the UK and eight percent of VISA balances, which is a striking achievement among the fiercely competitive financial services market.

Certainly, being of the originator of the internet banking concept in UK is also a key strength of Egg plc. Egg became a household name before any of its competitors ever arrived on the scene, and thus has become synonymous with the idea of the internet banking in the minds of many, if not most, consumers.

Another company's strength must be the customer care. The success of Egg indicates the correct anticipation of customers' need for the convenience of an internet financial services brand. Operating 24 hours a day, every day of the year, Egg accounts can be accessed and managed through the website, via a WAP enabled mobile, over the phone, or on digital TV. Egg recognizes that each person has a unique lifestyle and financial needs and aims to tailor its services to the client's requirements and offer solutions that meet his/her circumstances in the best possible way. All of Egg's products fully reflect its strong customer care: Egg Invest is the UK's first comprehensive online investment service with a selection of over 250 ISAable funds from 25 leading fund providers; Egg provides household, motor and travel insurance via Egg Insure; Egg Shop is the Company's shopping channel, providing a...
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