External Environment Analysis of Kiwibank

1. Introduction In New Zealand, banks was established to serve the finacial need of people in the period of be settled by European. Nowadays, New Zealand is one of the most competitive and flexible banking industries in the world because of environment and banks’ strategic capabilities. In this assigment, the broad macro-environment that influences banking industry will be analysed through PESTEL framework and Porter’s five forces. There are large banks in New Zealand such as ANZ bank, BNZ bank, and Kiwibank; however, just Kiwibank are deeply analysed in this assignment. Moreover, through Porter’s five forces, there are identification and discussion of the relative importance for Kiwibank. Furthermore, the analysis of Kiwibank’s strategic capabilities will be shown by resourced-based strategy and through VRIN framework. In particular, there are recommendations for Kiwibank to threats and opportunities of environment and strategic capabilites to be sustainable competitive advantage.

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2. Analysis of environment 2.1. PESTEL framework 2.1.1. Political Banks in New Zealand are supervised by the Reserve Bank of New Zealand (RBNZ) under the Reserve Bank of New Zealand Act. This Act gives the RBNZ the exercise of power to promote the efficiency of New Zealand’s finacial system, and to avoid considerable risks to financial system. All registerd banks in New Zealand have to follow a three pillars approach of RBNZ. The first pillar is self-regulation which is about the policies and structures force banks' boards of directors to govern well. The second pillar is market discipline which banks in New Zealand have repsonsibilities for making an extensive financial and cautious revelation to market. The third pillar is its regulatory and manageble requirements. Moreover, New Zealand has a stable politics and is one of the most peaceful countries in the world, which is an opportunity for banks to development. 2.1.2. Economic Economic is one of the most important influences

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