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1. The dominant economic characteristics affecting the payday lending are: government regulations and restrictions, competitor saturation, and the current recession.

2. The competition in the payday lending industry is strong. Approximately 22,000 payday advance are located in the U.S. and 9,500 banks are spread throughout the company. Stephen Inc. predicted that the payday loan market will encompasses 10% of U.S. households. During the 1980’s the federal restrictions were relaxed, which made the competition fierce.

The substitute products (i.e. checking account, credit cards, credit unions, pawn shops) are strong.

Power of supplies (i.e. Emergency loans are popular among payday lenders) are moderate.

Competition among rivals (i.e. possibility for large profits) is strong.

Power of buyers (i.e. multiple options for quick cash) is moderate.

Threat of new entrants (i.e. high barriers to entry) is moderate.

3. The Driving forces that currently affecting the payday lending industry are:

- Federal Regulation Restrictions.

- Companies within the industry favorably depended on a company’s cost structure and services related to other lending companies.

- Difficulties facing new companies was purchasing loans from third parties & generating their own loan-servicing portfolios.

- Demand on consumer lending and the quality of lending portfolios had a major effect on the equity market.

4. The Key success factors that affect industry members’ ability to prosper in the marketplace are:

- Breadth of product line and product selection.

- A well-known and respected brand name.

- Courteous, personalized customer service.

- Customer guarantees and warranties.

- Clever advertising.

- Distribution capabilities.

- Product innovation capabilities.

- Short delivery time.

- Supply chain management capabilities.

- Strong e-commerce capabilities.

5. Cash connections for competing in the financial services are to provide...