ING Direct

Résumé du document

ING Direct is a financial company for retail customers at a global scale which provides a limited number of simple products which are delivered at low costs in order to offer the best rates on the market. The banking industry is an attractive industry from the point of view of new players because the profits of companies that operate in this industry are usually extraordinarily high. Another reason why this industry is attractive is it that it is growing incessantly. The demand for banking products is increasing steadily as a result of higher income and higher living standards of the population. The savings account was the largest revenue earner.

Extraits

[...] On the other hand, ING Direct would offer the wide range of products and gain some new customers; 3. To launch the existing products which are successful into existing markets where the products haven't been launched yet: e.g. to provide mortgages in France and Italy; 4. To open few branches in order to have better interaction and create closer relationship with customers. This would lead again increase of the operational cost, loss of competitive advantage of the lowest costs and decreasing of interest rate or profit loss. [...]

[...] The arisen loss of these competitors could be covered by profit from another products from their portfolio. Unless competitors decide to enter into price war with ING Direct, its competitive advantage will last. Another way to react is that traditional banks can create banking operations via electronic means. It is possible that customers ask to their bank for making banking operations by Internet like transfers and assignments. Today, clients have to go to the bank office to do them. It would be more efficient and quicker. [...]

[...] It would be a new free service for the customers which can be very useful. ING Direct's SWOT Analysis 3. Options Competitive advantage can be developed through: Costs 1. Outsourcing of providing of some products which are not very profitable such as payment accounts, ATM cards, insurance and to focus only on products which are the most profitable (savings account, mortgages, mutual funds); 2. Cooperate more with the ING Group companies; 3. To develop partnerships with other local companies (banks, insurance companies,) and cooperate with them e.g. [...]

[...] ING Direct offers gross today in France. But if you compare with the traditional bank's rate, it is not very different. It is more noticeable with the net rates. Differentiation 1. Internationalization: to enter new markets in Europe and in long-term aspect the markets in Asia and South America: Europe: the most efficient would be to enter the markets of EU including some new EU members first like Belgium, Luxembourg, Greece, Switzerland, Hungary, Poland, Czech Republic, Slovakia, Slovenia ; Asia, South America: there are only few countries which fulfill the above requirements, countries that are the most developed within this area and large countries like Japan, China, India, countries in SE Asia (Singapore, Taiwan, Korea, Hong Kong, Indonesia, Thailand), Mexico, Brasilia, Chile; 2. [...]

[...] Bibliography Dynamic SWOT Analysis - Ring-bound avril 1994) par T.Richard Dealtry SWOT Decision Making par C.J. [...]