Northern Rock SWOT Analysis, USP & Competitors

Posted in Banking & Financial Services, Total Reads: 627
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SWOT Analysis of Northern Rock with USP, Competition, STP (Segmentation, Targeting, Positioning) - Marketing Analysis

Northern Rock

Parent Company

Virgin Money

Category

Bank

Sector

Banking and Financial Services

Tagline/ Slogan

-

USP

Top mortgage lender in UK

STP

Segment

Private and commercial banking

Target Group

Upper middle and High end individuals

Positioning

As one of the top mortgage lenders

SWOT Analysis

Strengths

1. One of the top five mortgage lenders in UK in terms of gross lending
2. The company focused on developing its own staff and most appointments including the Chief executive were made internally
3. The bank sponsored many local sports clubs and events and also donated substantial amounts to its own independent charity, the Northern Rock Foundation

4. It had a good capable employee strength with 6400 staff in number

Weaknesses

1. Supply of credit had more restrictions than others because its way of expanding its fund base was risky: Securitization
2.Bank was nationalized after the 2008 financial crisis as it was unable to replay taxpayer’s money
3. Many purchases were made at wrong times like the purchase of home ground of Newcastle Falcons Rugby Club for 15m pound which was done three weeks before the bank had to appeal to Bank of England for emergency loan

Opportunities

1. Sold to Virgin Money in 2012 and hence confidence among people was restored
2. Bank of England stepped into to give the bank an emergency loan giving it an opportunity to restore confidence among its customers

Threats

1. Shares of the bank fell after it approached for help to the Bank of England
2.Northern bank was built around mortgage business and hence it was very risky
3.Slow-down in the UK housing market as a result of financial troubles

Competition

Competitors

1.Bank of England
2.Allied Irish Bank
3.Halifax Bank



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