Virgin Money Canada

1977 WordsFeb 25, 20128 Pages
Assignment #1 1. What are some of the issues that Branson should consider in order to ensure that Virgin Money will be a success in Canada? One issue Branson definitely has to consider is the loyalty and strong confidence of Canadians in their banks. This confidence is shown in a recent survey where 85% of Canadians expressed confidence in their banking system, 92% agreed that the strength of the large Canadian banks is critical to the health of the overall economy, and 91% are confident that their deposits are secure. Therefore, Virgin has to come up with a good overall package to convince the Canadians to commit their money to Virgin. Additionally, the Canadian banking system is the soundest in the world since 2008, with…show more content…
Additionally, the competition is likely to lead to erosion of margins and market share. Therefore, Virgin has to be sure that they can cope with the competition and take over some of the market share from the established banks. Nevertheless, besides these threats, there are also opportunities in the industry, which could be exploited by Virgin. These opportunities are that the aging population is likely to increase demand for retirement services in Canada, the fast growing online banking demand and the positive outlook for Canada 's economic prospects. 3. Who might Virgin 's closest competitors be? As mentioned in the previous questions, the major Canadian banks as well as the foreign banks offer services online. This makes it difficult to determine the main competitors. After my research in some forums, I found that nearly all banks were recommended and had satisfactory online banking. Nevertheless, as Virgin Money will be a branchless bank in Canada solely operating online, the main competitor will be ING Direct Canada. 4. What niche might Virgin occupy? Due to the fact that there is no really unoccupied niche anymore in the Canadian banking industry, Virgin Money will offer more or less what they offer in their subsidiaries in Australia and South Africa. Namely online banking services, including saving accounts, credit cards,
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