Nexity and the Us Banking Industry
Summary
Introduction of Nexity 3
I. External Analysis 3
A. Industry and Demand Analysis 3
B. PEST Analysis 6
II. INTERNAL ANALYSIS 9
A. Resources View Analysis. 9
B. Value chain analysis 10
III. Nexity Financial analysis 12
A. Nexity bank business model and strategies. 12
B. Nexity Financial Analysis. 13
IV. SWOT ANALYSIS 15
V. TOWS ANALYSIS 16
Conclusion 17
Introduction of Nexity
Nexity is an online bank, which was initially called the People State of Grand and it was opened in February 2000. Its headquarters are located in Birmingham, Alabama, USA. Currently, David Long is the President of Nexity and Greg Lee the CEO. The turnover represented an amount of $13,018 millions in 2003. Banking online is a very good opportunity for the banking industry, there was a projection of 67 million of American using it by 2007 compared to 38 millions by 2003.There were a lot of players in this competitive market but Nexity had a generic strategy of differentiation by spreading its geographic and demographic customer base throughout the US.
External Analysis
Industry and Demand Analysis
Historically, there was a rebound of the banking industry and rapid growth in this area after the Great Depression and World War II, with the hope to keep the industry from being highly concentrated. Indeed, the US banking industry was a fragmented and dispersed system but it changed in the 1980’s. These changes were due to financial legislation which wanted to lead to a more integrated financial system in US in terms of activities and products
The deregulation led to consolidation and consequently to new rivalry. Helped by the Gramm Leach Bliley’s Act offering extended banking but also by the changes in communication and information technologies, the US banking industry knew a merger mania and a lot of acquisitions were done. All had the same goal : to develop a more national brand
Introduction of Nexity 3
I. External Analysis 3
A. Industry and Demand Analysis 3
B. PEST Analysis 6
II. INTERNAL ANALYSIS 9
A. Resources View Analysis. 9
B. Value chain analysis 10
III. Nexity Financial analysis 12
A. Nexity bank business model and strategies. 12
B. Nexity Financial Analysis. 13
IV. SWOT ANALYSIS 15
V. TOWS ANALYSIS 16
Conclusion 17
Introduction of Nexity
Nexity is an online bank, which was initially called the People State of Grand and it was opened in February 2000. Its headquarters are located in Birmingham, Alabama, USA. Currently, David Long is the President of Nexity and Greg Lee the CEO. The turnover represented an amount of $13,018 millions in 2003. Banking online is a very good opportunity for the banking industry, there was a projection of 67 million of American using it by 2007 compared to 38 millions by 2003.There were a lot of players in this competitive market but Nexity had a generic strategy of differentiation by spreading its geographic and demographic customer base throughout the US.
External Analysis
Industry and Demand Analysis
Historically, there was a rebound of the banking industry and rapid growth in this area after the Great Depression and World War II, with the hope to keep the industry from being highly concentrated. Indeed, the US banking industry was a fragmented and dispersed system but it changed in the 1980’s. These changes were due to financial legislation which wanted to lead to a more integrated financial system in US in terms of activities and products
The deregulation led to consolidation and consequently to new rivalry. Helped by the Gramm Leach Bliley’s Act offering extended banking but also by the changes in communication and information technologies, the US banking industry knew a merger mania and a lot of acquisitions were done. All had the same goal : to develop a more national brand