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Date Submitted: 06/02/2012 06:15 PM

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Business Policy

BUSI 4400

William DaCosta

Student ID: D0527296

Mount Saint Vincent University

Assignment 2

Cash Connections

Cash Connections Strategy & Generic Strategy

Cash Connections strategy is outcompeting rivals on the basis of differentiating features, such as high quality, wider product selection, added performance, value added service, more attractive styling, and technological superiority.

I feel that Cash Connections is following this strategy because the company is the company was facing declining sales, increased government regulation, and the increasing difficulty of differentiation the company in a very saturated market. The government was implementing a “financial czar” (C112) which meant a more heavily regulated market by the federal government. The federal government has a substantial impact on the operations of all financial intuitions. Allen Franks knew this would lead to more audits. In addition, the cost associated with these audits and increased regulation would take away his company’s ability to compete.

To create a wider product selection, added performance, value added service, Franks decided to add cheque-cashing services in cities that did not have them, bill payment, prepaid phone cards, and money orders. Cash Connections also served as a Western Union agent by transferring funds. Franks main goal, which strengthens the strategy, chosen, was to outcompete the company’s rivals through a wider product selection, added performance, and value added service. He was trying to differentiate his company through unique drivers.

With regards to Cash Connections’ Generic Strategy, I feel the company is using the Broad Differentiation strategy. Allen Franks is seeking to create a competitive advantage by encompassing features that set the company apart from its rivals. Allen Franks, the company owner, knew his company was struggling because the company’s net income between 2007 to 2009 saw a significant decline. This was mainly...