BNZ Situational Analysis Essays

BNZ Situational Analysis Essays BNZ Situational Analysis Essay BNZ Situational Analysis Essay There are 4. 42 million people living in New Zealand, and over 470,000 enterprises operating in New Zealand, which means their potential market size is very large. Competitive Environment The main competitors of the BENZ are Kickback, Western, ANZA and ASP. There are other smaller banks in New Zealand but these are their main competition. Kickback is 100% New Zealand owned and operated, while the BENZ is part of the National Australia Bank group. Customers may feel more comfortable banking with an entirely New Zealand owned business. Western offers free workshops on managing money to their customers. Customers who do not have good skills in managing their money may be more inclined to bank with Western because they offer this service. ANZA offers bonus bonds, which give New Slanderer a unique way to save and a chance to win cash prizes. Macro-Environment (PEST) Technological Environment: Technology is constantly evolving. This gives BENZ the opportunity to gain competitive advantages over their opposition by developing and expanding their services. Due to the increased ownership of smartness and tablets, consumers have become more reliant on Internet banking and mobile banking APS. Political Environment: The BENZ is registered as a bank under the Reserve Bank of New Zealand Act 1989. The Act gives the URBAN the powers to register and supervise banks for the purpose of promoting the maintenance of a sound efficient financial system and: avoiding significant damage to the financial system that could result from the failure of a registered bank. This means they can legally operate as a bank in New Zealand. Economic Environment: The Reserve Bank of New Zealand has put restrictions on lending to customers who have a Loan to Volume Ratio (LIVER) of over 80%. This means homebuilders with a deposit of less than 20% will find it difficult to get loan. TOWS Analysis Threats Competitors. There are other large banks operating within New Zealand. These other banks are constantly competing to attract customers by offering them the best deals and other products that may set them apart from the BENZ. Restrictions on LIVER. Due to a recent change in law, banks are only allowed to have a certain percentage of their loans on a high LIVER which could lead to a reduction in home loans as due to rising house prices many people cannot afford a large deposit on a home. A deduction in home loans could potentially lower the banks profit. Opportunities Technological Advances. Technology is evolving quickly and people are becoming more reliant on it. The BENZ have one of the top Internet banking systems and mobile phone banking APS, Younger. Technological advances give the BENZ the opportunity to build on these products and look into developing new, innovative banking APS which could potentially give them an advantage over their competitors and attract more technology as. N. Y customers. An ever-increasing labor force. The growing labor force provides a greater potential customer base. Weaknesses The BENZ are not 100% New Zealand owned and operated . The BENZ is part of the National Australia Bank Group. Customers may feel hesitant about banking with a bank that is not entirely New Zealand owned. Strengths They are a trusted NZ bank with a large customer base . The BENZ have a large number of loyal customers who can potentially attract more customers to the BENZ; parents who are customers may open up an account for their children or tell other family members or friends about their positive experience banking with BENZ. They have an advanced and easy to use Internet banking system. The BENZ has recently created Younger, an Internet banking programmer that works like your brain does. This gives them an edge over their competitors, and is likely to attract students, workers and other people who rely on Internet banking. They are an environmentally friendly business. The BENZ places a large focus on the sustainability of their business and pride themselves in being environmentally conscious. For example, their newest buildings are constructed with sustainability in mind and have all attained a green star rating. This may attract customers who value environmentally friendly businesses. Bans target market is NZ businesses and individuals who are aged 18 years and over. However, they target businesses and individuals who are aged 25 and over more strongly. This is evident from their website homepage which feature advertisements on home loans, travel insurance and their Asian business team. It is important the BENZ continues to embrace the constant advances in technology in order to maintain upper hand over competitors in the technological environment. They can do this by being the first to invent state-of-the-art ways to bank such as using creating a way for smartness to be used to pay for things. To overcome the weakness of not being 100% NZ owned and operated, the BENZ should advertise to customers that although they are a subsidiary of The National Australia Bank Group, a fully empowered New Zealand Board of Directors governs the BENZ locally. This should reassure customers and make them less hesitant about banking with the BENZ due to them being Australian owned. The BENZ targets businesses and people aged 25 and over very successfully, although, it would be beneficial for them to expand their target market and place a greater emphasis on the younger generations. Younger generations are becoming more educated with a rising proportion of young people entering the workforce with tertiary qualifications. For the BENZ, this means a vast potential customer base of educated individuals. They have begun to target this generation by offering students, graduates and apprentices discounts on products such as Younger and also discounted interest rates. Another way they could target this younger market links back to utilizing technological advances since generation Y is more technically adept than any other generation.