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Assessment of Santander Consumer Finance's approach to their international technique
Through this report I actually provide a critical assessment of Santander Consumer Finance's (SCF) approach to the international strategy. In the 1st part, My spouse and i analyse SCF's external environment by showcasing its background business model and also by applying Porter's five pushes model. I like to use by analysing SCF's interior environment concentrating on its framework and applying the reference based look at model. I finish having a critical assessment of SCF's strategy. Inside the second component, I evaluate SCF's managerial implications by highlighting their strengths, weaknesses and potential solutions. Finally, I present some tips for SCF's upcoming strategy.
I. Advantages (Part A)
SCF is actually a subsidiary organization of the Santander Group. This business started out like a small project that during the time of its creation was not supposed to grow and transform into one of the most lucrative units kept by the group (Santander Customer, n. m. ). The organization grew underneath the vision and leadership of its previous Chief Executive Officer Juan Rodriguez Iniciarte and became the key player in the market for consumer finance. However , their journey to success is definitely marked by struggle resistant to the market players and macroeconomic factors. A whole analysis of SCF's international strategy may be broken down into three main portions: -External analysis
II. Research of SCF's strategy
A. External evaluation
In order to assess SCF's exterior strategy, discussing try initial to understand SCF's business model and show back in its history. Then, we will scan its external environment by using Porter's five makes model which consists essentially in analyzing SCF's ability to manage these kinds of forces, to overcome weaknesses exposed by these makes or to take advantage of opportunities made available from the conjunction of these pushes (B835 вЂ“ Unit 2).
a. SCF's background business model
SCF was create and designed in the Western european markets. Over time, it has extended its area to additional markets just like America, Russia etc . Significant portion of SCF's business is concentrated in the auto-finance sector. SCF employed roundabout sales strategies to function in this sector. During the start of its businesses, SCF needed to give a lots of incentives to dealers as a result of presence of strong competitors and other marketplace forces (Harvard Business University, 2012). European Economies in those days were not integrated and nationwide interest rates enjoyed a major part in determining the ingestion trends inside the population. Furthermore, the interest rates varied tremendously from one region to the additional. This is why SCF could not follow a uniform policy in Europe (Harvard Business School, 2012). The industry intended for consumer financing was still pretty much in hand of enormous manufacturing units (e. g. car manufacturers) that presented the customer an alternative of funding the product. However , SCF's significant revenue came from indirect product sales. In a way, the trend set was unfavourable pertaining to the company, however the marketing strategy with the company did well to counter this trend collection and make space to get SCF on the market. SCF dedicated to converting its indirect revenue into immediate ones. SCF was directly in competition with nationwide banks in the European countries, car manufacturers and large commercial financial institutions (Harvard Organization School, 2012). b. Porter's five makes applied to SCF
The model below reveals the five forces that play major role in deciding the competitive intensity of any market. If the business and the market in which this operates are analysed, then it enable to gauge this industry for depth and competition (B835, Product 2).
The threat of substitute product will not play such an important role with this industry. It is because this is only something product as well as the only issue that can differ are the interest levels being charged. As well,...
References: (Accessed 15th Nov 2012).
Reuters (2012/03/06), Bank of Beijing Co., Limited., Banco Santander SA Spouse On Buyer Financing [online],
(Accessed 15th November 2012).
The Available University (2012) B835 Strategy, Unit 2, вЂUnderstanding the industry environment', Milton Keynes, The Open University
The Open School (2012) B835 Strategy, Unit 3, вЂThe evolution with the RBV', Milton Keynes, The Open College or university.
Trumbull, G., Corsi, At the., Barron, A. (2010), Santander Consumer Financing, Harvard Organization School, 13th December 2010
Santander Customer (n. d. ), Each of our History [online],
(Accessed 30th October 2012).
(Accessed 30th October 2012).