Republic of Ireland market SWOT analysis for Barclaycard

NB: We do not resell your papers. Upon ordering, we do an original paper exclusively for you.

NB: All your data is kept safe from the public.

Introduction

The essay is in-depth examination of a strength, weaknesses, opportunity and threats of the republic of Ireland markets for Barclaycard. SWOT analysis has been thought of as a strategic planning mechanism that aims at evaluating strengths, weaknesses, opportunities and threats that are involved in projects or business activities. Generally speaking the whole activity entails coming up with factors that are either internal or external which can either be favorable or unfavorable to attaining a given objective or business initiative.

Barclaycard is a globally known organization that offers loan and credit card. It is owned but Barclays plc a United Kingdom company. It was the first card that came to limelight in England and was operational back in 1966. In UK alone the firm has 10.4 million customers as well as 10.8 million customers outside the U.K. (Barclays PLC., 2004)

With its marketing strategy, the firms has in the recent past seen to have widen its international market, however entrance of new firm dealing with the same products and services have posed a threat to Barclaycard (Hill & Westbrook, 1997). To address the uncertainty that may be associated with venturing into Ireland, the firm needs to analyze the market so that it can be in a position to maximize its capabilities by utilizing the opportunities and minimize threats identified.

Strengths

A strong economy of Ireland is a major strength the market has. With a stronger economy and higher rates of income, individuals do have a higher purchasing power. This will provide the firm with an opportunity to increase their sales volume. The low corporation tax which stands at 12.5% encourages economic growth thus Barclaycard as a foreign investment stands a chance of growing too.

As suggested by O’Hagan, 1995 Ireland has one of the stable political statuses since the end of conflicts in Northern Ireland. Such an environment is a boost to the firm’s quest to enter the market. It is no doubt that the there are evidences of high level of investments.

The ability of the country to attract foreign direct investment will definitely propel the firm to greater height. It is worth noting that the market is made up of well educated workforces who are inexpensive and capable of speaking English. This will make the firm comfortably do business. The government is also less bureaucratic.

Weaknesses

The country has one of the worst infrastructural developments. This will hinder transportation as well as movement of goods and services. There is need for the state to improve internal transportation to facilitate movement of human, goods and services. The foreign direct investment policy that favor foreign firms to invest in the county will flood the market with firms that provide similar services like those offered by Barclaycard watering down the market.

According to Hill & Westbrook, 1997 the older population of Irish people are not adequately educated; having in mind that they are the ones having various investments and money they may not be in a position to embrace use o credit cards. Additionally, the country heavily depend on foreign firms which is very risky if there will be reduced international trade negatively affecting domestic industries.

Similarly, the location of the country makes it to be in a remote region compared to other European population. This is a serious disadvantage to Barclaycard as it will have a limited market size or scale. There is a higher rate of inflation in Dublin area and this will make it expensive to do business. There is need to rebalance economic growth of this region.

Opportunities

The government has given room for her respective department to change laws that seem to hinder international trade, there are chances the firm can possibly merge and at the same time acquire other firms to produce a desired synergy that will rock the market (Barclays PLC. 2004). On the same note, there are a growing number of young individuals who are ‘techo-philic’ and will embrace the use of credit cards.

Threats

Economic crunch or crisis is one serious threat that faces entirely all business entities Barclaycard not being an exception. There are chances of the firm facing vey stiff competition from organizations that provide similar services to the public (O’Hagan, 1995).

References

Barclays PLC. 2004. Annual Report. Barclays PLC, London, The United Kingdom

Hill, T. & Westbrook, R., 1997. ‘SWOT analysis: It’s time for a product recall’, Long Range Planning, vol.30, no. 1, pp. 46–52.

O’Hagan, W., 1995. The economy of Ireland: Policy and performance of small European countries. New York: St. Martin’s Press.

Click Here To Order Now!