Industry life cycle
- The banking industry in Canada is very stable and can be considered to be a saturated industry. This means that the industry is usually in the maturity stage of the life cycle. \
- That makes it stable, very well developed and highly concentrated, with the five largest financial institutions controlling more than 85% of the sector’s total assets, resulting in an oligopoly in the market (Claudio Eggert).
- The strategic implications of the life cycle means that these big five companies will continue to push for growth and many have turned to emerging market economies, such as an international strategy (Reddy, Cognizant Research Center).
Assessment of Industry:
- The Canadian financial system consists of 14 domestic
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- The largest contributor to earnings is the Canadian Banking arm. 10 million clients (individuals and businesses) are provided with financial services which provides financial services through a large network of branches. (Royal Bank of Canada, 2012)
- RBC International strategy is mainly focused on the US, providing financial products and services to customers, including brokerage services, insurance and investment banking services through a number of divisions. However, RBC has now shifted from focusing on international revenues to focusing on their domestic strategy (Claudio Egger).
We can conclude that RBC is strong in leading the market position in Canada and has solid financial fundamentals. They have a great reputation in the industry and are known to be the most trusted bank in Canada. RBC’s strategy shift in 2010 from leading in the US to focusing on the domestic market (because of the ongoing weakness in the US economy) to mostly generating revenues in Canada, resulted in higher market share and profits. Their strategy has not changed much over the past decade, but they continue to reach a wide range of client. Also, as the Canadian economy is showing some strength, GDP is likely to increase to 2.1% in 2018 (RBC Economics), which should show some growing profits. RBC’s competitive advantages
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In Canada, RBC enjoys being the leading organization in the industry and having an advantage of being the most valuable and trusted brand, as reported by Report on Business (2011). Since RBC has shifted its strategy to focus on its domestic market and generating strong financial fundamentals domestically, they have become able to provide better services and value to customers. This is connected to RBC’s strategic goal of being the undisputed leader in financial services in Canada.
RBC’s strategy in the US has shifted to being the preferred partner to corporate, institutional and high net worth clients and their businesses. This is because RBC was not able to lead in the international market as it does in Canada. Over the past few years, RBC sold the majority of its US retail and commercial operations, however they managed to keep their wealth management and capital markets operating. (Claudio Egger). Since RBC shifted their focus on wealth and capital markets and other financial services domestically and internationally, net income increased by 4% from 2015 to the end of 2016 (Royal Bank of Canada, 2017). Overall, even though net income has not been increasing rapidly, RBC have been meeting their strategies and have been able to excel in such a saturated
Its trading volume increased to over 17.7 million contracts, up 21 per cent from the previous year. This significant growth is largely due to strong growth in interest-rate and index derivatives products, which increased 40 per cent and 15 per cent respectively. In addition, the underlying value of contracts traded averaged more than $30 billion (currency is of Canadian Dollars) on a daily basis, compared to $20 billion in 2002.Though the Montreal Exchange was doing fine on its own joining together with the Toronto Exchange has made the
National Bank of Canada ("NBC" or "the Bank") is tasked with the decision to review Dawson Lumber Company Limited's ("Dawson") request for an increase in its line of credit up to the amount of $10.8mm. Dawson intends to finance inventory and receivables with the line of credit. NBC must remain cognizant of the competitive landscape of the lumber industry and assess whether a focus on the retail segment is beneficial to Dawson's strategic plan. Given that Dawson is one of the region's largest borrowers, NBC must be careful in how it manages this relationship. The Bank cannot afford to turn away NBC's business. However, extending Dawson additional credit may increase Dawson's default risk and jeopardize the potential for NBC to retrieve the $4.2mm term loan it is already owed.
Target’s first foreign store investment was in Canada; American stores look to Canada as their first foreign investment because the differences between the two countries are relatively minor. Other stores that have expanded to Canada include Wal-Mart, and Sears, each of these companies proved to be prosperous in Canada. Canada is one of the wealthiest countries in the world and is dominated by the service industry, Wawa would have no trouble fitting into the culture Canada has and dominating the market as they do here, in the United States. After reading about Canada and Wawa, we have realized this move could only benefit Wawa and help their reputation and build their company.
A positive to expanding to Canada is that Canadian shoppers are similar to American shoppers, ideally making this a good target market for growth (Fiorletta, 2015). In an interview regarding expansion in Canada, CO-CEO Walter Rob said, “Our efforts in Canada are part of the effort to grow.” “We think the opportunity for fresh, healthy foods is larger now that it’s ever been”. “And we intend to grow as fast as we have ever grown — 40 new stores next year, 42-44 for the following year.” “That’s 10% square footage growth on top of 15 million square feet of retail we already have.” “People have said maybe we should stop our growth.” “I said, no, we are not going to do that because our strategy is working.” “There’s no reason to stop.” “There’s every reason to keep going.” (Vieira,
Canadian Tire’s positioning is adapting to the needs of customers and approaching new ideas. It’s also a very well know and establish organization in Canada.
...han a mercantile operation. This is evident through the rise of competition in the market, which prompted HBC to change to a corporative framework to carry out its operations. Furthermore, decreasing demand and supply of fur was weakening HBC. Focusing on other goods, rather than fur indicated that the company was reforming from its mercantile philosophy and exploiting other markets through a corporative framework. Lastly, the mercantile management was another declining factor to HBC’s operations. Leaders like George Simpson advocated a corporate management style so that it does not contradict with current Canadian economic environment. On the whole, it was important for HBC to transition to a complex corporate framework in order to survive through the transition. This transition initially progressed Canada towards the confederation and made its own stand globally.
Target, a high-end discount department store, hoped to continue expanding and adding to the company’s 1,752 stores, by purchasing 200 Zellers stores, located in Canada. One of Target’s, longtime goals was to expand into Canada , and after a decade, the company took a jump across the border (Shaw, 2011). Because many thousand Canadians hold a Red Card, Target’s reward card, Target assumed this would be a successful expansion, increasing the amount of US brands that encompass Canada’s market. Target spent a year converting the Zeller stores, altering and renovating them to transform them into Target Canada, a subsidiary of Target (Shaw, 2011). They opened 124 stores in locations all over Canada, hiring back only one percent of the former Zellers employees, desiring to make a fresh start for the department store chain (Target Refused Zellers Workers).
Rogers has invested billions of dollars purchasing successful businesses such as magazines like Macleans, radio stations (680 & CFRB), sports facilities (Rogers Centre) as well as investing in sporting organizations. On December 9th, 2011 Rogers along with Bell bought a majority stake (79.53%) in Maple Leaf Sports & Entertainment Ltd. (MLSE) which is a Canadian professional sports business that owns the Leafs, the Raptors, Toronto FC, and the Marlies. They are also property owners of the Air Canada Centre which is the Leafs and the Raptors home arena. It’s clear they want to reach e...
The Canadians and Target both lost out on opportunities that could have excelled them both in distinct ways. For the Canadians, Targets poor attempt at going global costs Canadians their jobs when the retailer had to close its stores. The retailer also is looked upon negatively for having expectations of going global that were well beyond their reach and executed poorly.
The literature reviewed to produce this report consisted of different online trusted sources, and official data from Loblaw Canada Limited website. Tangible and intangible assets have been taken into consideration, as well as the company’s stated goals, vision, mission and an overall structural review of the company. In order to properly conduct the analysis of Loblaw Canada Ltd., some well recognized tools were used, such as Porter’s Five Forces, SWOT analysis and PEST. Online journals, additional publications, and Loblaw’s annual reports were consulted throughout the report producing
Owing to the fact that HBC is a parent company, which owns and operates Zellers, Home Outfitters, Lord & Taylor, Designer Depot and Sportarena, it has been challenging in order to manage all to be profitable. In 2013, Baker added one more company to its list, that HBC bought an American fashion apparel retailer Saks Fifth Avenue(Saks), and it is successfully opened in Toronto in 2016. Moreover, it is noticeable that HBC’s new CEO and management team seeks for a growth. According to company’s official goal, which is more commonly known as a mission statement, it states, “HBC targets $1.5 billion in incremental sales and revenue” (“About HBC”), that one of HBC’s main values is Growth-oriented. “We have a 900,000-square-foot store in downtown Toronto,” Baker told the Financial Post after buying HBC in 2008 from American investor Jerry Zucker. “It’s not productive. Instead of having anemic sales in this building that’s too big, why not do something truly exciting?” (Shaw, Financial Post). Additionally, and luckily, Torontonians want Toronto to be more modernized, wherein 2016 John Tory a Mayor of City of Toronto has announced details of a plan to modernize Toronto, (Draaisma, "Tory announces the plan to improve service, save money"). Thus, HBC’s decision of buying and bringing Saks Fifth Avenue to Toronto, a modernized mall with an elegant atmosphere was a rewarding decision and
Canada Post is one of the largest Crown Corporations. In this report, we have to determine the organization structure and objectives of the Canada Post followed by the audience and market segment being targeted by the organization along with identifying the key success factors and the type of dealings the organization has with the government. With the worldwide growth of Ecommerce Sales, the demand for residential delivery is also increasing thus, Canada Post is operating as primary postal operator all over Canada headquarter in Ontario offering a full range of delivery and fulfillment services to customers. This paper will emphasis on the current environment and capabilities of Canada Post necessary to evaluate its position
The purpose of this presentation is to provide a comparative analysis of business activities of two well-known representatives of the US retail industry, Target and Walmart. My research is focused on a business strategy of these largest and most experienced American merchandising companies; particularly, on their activities in Canada. Based on the data collected from the various sources, I would like to detect, analyze, and demonstrate the obvious causes that have lead to a catastrophic failure of Target in its unsuccessful attempt to win a Canadian market.
Growing globally- Air Canada have the opportunity to grow globally by building their network with different countries and this relationship should be long lasting for more growth.
The study is primarily designed to find out the continuous issue of the banking system in