Case Study-Barclays

3244 WordsJan 4, 201213 Pages
BARCLAYS: MATT BARRETT’S JOURNEY – WINNING HEARTS AND MINDS I. DISCUSSION QUESTIONS, CASE INTRODUCTION AND KEY POINTS Introduction The case covers the introduction of Matt Barrett as CEO of Barclays and the changes he introduced to the organization to maintain its competitive position within the retail financial services industry. In an increasingly competitive environment, Barclays is losing ground due to its lack of data-driven actions and small global presence. The case outlines the actions taken by Barrett to transform some of the key characteristics of Barclays’ corporate structure, and concludes by presenting the challenge he will face in getting management buy-in in order to implement his vision. The key challenges that Barclays…show more content…
2. 3. 4. 5. Threat of New Entrants (or barriers to entry) Supplier Power Threat of Product Substitutes Buyer Power Intensity of Rivalry Discussion Question 2: Use Porter’s Five Forces Model to analyze the retail financial services industry in the UK. Given this analysis, is the industry attractive or unattractive? The below Porter’s 5 forces analysis shows that the retail financial services industry in the UK is a potentially attractive industry due to low threat of new entrants, supplier power, and substitutes. On the other hand, medium buyer power and high rivalry within the industry could inhibit return possibilities. Threat of New Entrants (or barriers to entry): Low   High infrastructure costs Barclays has high brand recognition within the UK, less so in its other markets BARCLAYS |3 BARCLAYS: MATT BARRETT’S JOURNEY – WINNING HEARTS AND MINDS   Regulatory and security issues make market entry complicated for smaller players NOTE: Mergers of existing banks, if considered ‘new entrants’, must be addressed given the consolidation trend existing in the market. Smaller regional banks could pull customers away from Barclays if they were to merge and offer more extensive services but retain local roots and connections. Supplier Power: Low  Switching costs among IT suppliers low in a fragmented industry Threat of Product Substitutes: Low  Traditional, paper based, systems have become outdated and are no longer feasible. Asset
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