STRATEGIC POSITIONING

Strategic Positioning Of Santander Bank



Strategic Positioning Of Santander Bank

Introduction

In this report we have analyzed the strategic positioning of Santander Bank based on current issues, emerging trends and their implications using; Porters five forces and PEST analysis tools. From these analyses, we were able to conclude that the nature of competition is fierce despite the present economic downturn.

PESTLE Analysis

All banks including Santander bank can be affected to a lesser or greater extent by macro forces, i.e. political forces - legal, economic, technological and social, whenever companies occasionally try to influence legislation or through R & D pioneering new technology or changes to strengthen its strategic position or to discover new opportunities. Macro forces generally are not under the direct control of companies, therefore, the purpose of the strategic direction is to enable the organization to act effectively to threats and environmental constraints and opportunities emanating from the same (Kotler, Philip, et al, 2009, p. 36). To meet this objective, strategic leaders must identify and analyze how expression of these macro-forces in relation to the company.

Political and legal Forces

Usually trends are given by laws, regulations, government regulations etc, example is the set of laws and regulations of the United States government against our country.

Economic Forces

Economic force have a significant impact on company operations this include the gross domestic product. Refers to the total annual value of production of goods and services a nation. Sustained moderate growth of gross domestic product generally produces a healthy economy in which businesses are a growing demand for its products due to the growth of consumer spending, opportunities abound for both established businesses, and the new, and a decrease of gross domestic product usually reflects the reduction in consumer spending and therefore low demand for the productions (Schuermann, 2008, p. 54). When the gross domestic product declines in two consecutive quarters is considered the national economy into recession. During these periods increases dramatically competition, profitability and business suffers lost growth rates, although for some companies these situations offer opportunities.

Interest rates short and long terms significantly affect the demand for products or services. Interest rates short terms, for example, are beneficial to the dealers of credit, while for other businesses long-term loans are beneficial. The levels of interest rates greatly affect strategic decisions. Normally high rates discourage business plans to obtain loans in order to make technological changes, while low interest rates are more tax for capital spending on mergers and acquisitions, although some companies and entire countries are serious threats of them.

Moreover, the high inflation rates usually are restrictions for businesses they stimulate the change in business costs. Rising inflation will restrict business growth plans. Of course, inflation can provide opportunities for some companies, such as oil companies' benefit during periods of inflation if prices rise faster than the cost of exploration.

Social Forces

Social forces include the traditions, values, social trends, consumer psychology and social expectations that have endured for decades and even centuries. The values are relative concepts that society holds in high ...