Impact of Prudent Management Decision-Making on Credit Unions

The assignment content discusses the financial services offered by Collabria Financial, a company that has been offering its services for a long period of time. The company has opportunities to offer new and innovative financial services, such as credit card facilities, to its credit union clients in Canada. However, it also faces threats from macro-environmental factors and competition from other financial service providers. To address these issues, the company needs to conduct an analysis of its strengths, weaknesses, opportunities, and threats (SWOT analysis) and develop a strategic plan to launch its credit card services.

Running Head: E-Commerce & Marketing
Collabria Financial Credit Cards - A Market Entry Strategy-Part 1

2
E-Commerce & Marketing
Table of Contents
Executive Summary...................................................................................................................3
1. Situation Analysis..............................................................................................................3
Introduction............................................................................................................................3
Market Situation.....................................................................................................................3
Macro-environment................................................................................................................4
Demographics....................................................................................................................4
Economics..........................................................................................................................4
Political-Legal....................................................................................................................4
Ecological...........................................................................................................................5
Socio-Cultural....................................................................................................................5
Technological.....................................................................................................................5
Competitive Situation.............................................................................................................6
Distribution Situation.............................................................................................................6
2. Opportunities and Issues Analysis.....................................................................................6
Strengths and Weaknesses.....................................................................................................6
Opportunities and Threats......................................................................................................7
Issues Analysis.......................................................................................................................7
3. Target Market.....................................................................................................................8
Segmentation..........................................................................................................................8
Positioning..............................................................................................................................8
4. Objectives...........................................................................................................................8
Financial.................................................................................................................................8
Marketing...............................................................................................................................8
Societal...................................................................................................................................9
5. References........................................................................................................................10

3
E-Commerce & Marketing
Executive Summary
This report elicits the market analysis and the market entry strategy for Collabria Financial
Services Inc. With it’s recently proposed launching of credit card facilities for its credit union
members. The Canadian Credit Unions are a form of a financial cooperative in Canada where
the members are the creators, as well as the stakeholders, borrowers, and depositors of funds
in this establishment. The credit unions operate as nonprofit establishments offering several
financial services such as banking, consumer and commercial loans, time deposits,
guarantees, etc. Collabria Financial Services is now planning to launch the credit card
facilities for its credit union members. Therefore, critical analysis has been conducted on the
market situation and the several factors playing in the Canadian credit union industry along
with the determination of the strengths, weaknesses, opportunities, and threats of the
organization in relation to its proposed credit card services. The report also contains a
reflection of the target market segment and the objectives that the company wishes to achieve
through its proposed credit card services for the credit union members.
1. Situation Analysis
Introduction
Collabria Financial Services Inc. is an organization offering customized payment solutions to
the credit unions in Canada for a long period of time. The company has been able to develop
effective partnerships and collaborations through dedicated and responsive services to the
credit unions in the domain of payment solutions (Collabria Financial Services Inc., 2019).
The professionals working within the organization are dedicated to designing solutions based
on the needs of the credit unions and their members. The company using its strong network
offers a worthwhile consumer experience to the credit union members. Recently, the
management of Collabria has proposed launching of credit card facilities for its credit union
members (Canadian Credit Union Association, 2019).
Market Situation
The Canadian credit unions have been functioning under challenging conditions due to the
low-interest environment along with the slower GDP growth, high levels of household debt
and a considerable degree of unemployment within the economy. This had a negative
influence on the business situation in Canada. The most challenging phase of the credit union
industry in Canada was in 2016 when the Bank of Canada reduced the overnight rate for
stimulating the economy as an ensuing result of commodity price collapses. But after 2016,

4
E-Commerce & Marketing
there has been considerable consolidation of the credit union industry in Canada, as
increasing external competition from commercial banks and the desire to achieve economies
of scale have influenced the credit unions to offer services almost at par with the banks and
other competitors in the industry. The revenue generated in the Canadian credit union
industry has been around $17 billion in 2018, with an annual growth of 1.5%. The industry
currently employs around 65,866 employees across 712 business establishments in this sector
(IBISWorld, 2018).
Macro-environment
The macro-environmental factors impacting the credit union industry in Canada are
enumerated as follows:
Demographics
The market demographics of the credit union establishments in Canada consist of the
members that are the owners as well as stakeholders of the various credit unions in Canada.
the financial services organizations such as Collabria offers several financial services to the
credit union organizations, where the members belong to a wide range of demographic
characteristics such as age, gender, annual income, nationality, ethnicity, social group, etc.
for Collabria, the demographic segment consists of the members of the credit unions to which
the organization offers comprehensive payment solutions through customized payment
systems for each of the credit unions within the country (American City Business Journals,
2015).
Economics
The economic factors within Canada play a major role in determining the services of the
credit unions along with the financial organizations such as Collabria which offer several
payment solutions to these credit union organizations (RASTOGI & TRIVEDI, 2016). In
2016, the economic condition of Canada was in a turmoil, but after that, the economy has
consolidated and it can be said that the market looks promising for the credit union industry
which is a positive factor for Collabria.
Political-Legal
The progress of the credit union industry in Canada is impacted by political and legal factors.
This is because the political and legal regulations and protocols were undertaken by the
government of Canada impact the economy and control the flow of capital and money, which
impacts the business scenario within the country. Hence, the credit unions are impacted by

5
E-Commerce & Marketing
such decisions. Financial service companies such as Collabria are naturally impacted by such
political and legal factors playing their parts within the economy of the country as they serve
the several credit unions within the country.
Ecological
The ecological factors within Canada play a significant role in determining the growth and
future prospects of an industry such as the credit union industry. It is essential for an
organization such as Collabria to take care of the ecological and the environmental aspects of
conducting business ethically within the country. The Government of Canada is strict on
ecological issues and it has issued some strict principles and protocols that need to be
observed by the financial service providers within the economy. Hence, the ecological factors
will impact the future strategic decisions of the company and as such, responsibility towards
the ecology and environment should be abided by the organization within the credit union
industry.
Socio-Cultural
The socio-cultural factors have a major role to play on the functioning of any industry within
Canada. As such these factors will impact the current and future business strategies of
Collabria as it continues to offer financial services and solutions to the credit unions in the
country. The socio-cultural factors refer to the values, morals, cultures, traditions of the
consumers within the target segment in respect of Collabria. It refers to the members of the
credit unions whose tastes and preferences will impact the current and future business
strategies of the financial services organization in the industry (PESTLE Analysis, 2018).
Technological
The technological factors are important considerations for any industry operating within a
country. As such for Collabria, which offers customized payment solutions to the credit
unions in Canada, the technological infrastructure and facilities available are important
considerations because the financial services sector is developing fast based on innovative
digital communication and information technology infrastructure which has a major role to
play in the Canadian economy in the years to come. Hence, the company will have to
undertake continuous technological innovation to be able to remain competitive in the
industry and keep serving the credit unions with customized financial solutions such as the
newly proposed launching of credit card services for its members (Greedy Rates, 2019).

6
E-Commerce & Marketing
Competitive Situation
The major competitors for Collabria consist of the several financial service organizations
which provide credit card facilities to retail consumers as well as corporate establishments
such as Scotiabank, Visa, MasterCard, American Express, MBNA, TD Canada Trust and
other commercial lending institutions in Canada, which offer various financial services and
credit facilities to the individual consumers as well as corporate establishments like the credit
unions in Canada (CreditWalk Canada, 2013).
Distribution Situation
The distribution of such financial services to the individual and corporate customers by the
several banking, financial and lending corporations in Canada takes place mainly through the
wholesale and retail banking services to the corporate as well as retail consumers in this
sector. For companies such as Collabria, which offers customized financial solutions to the
credit unions in Canada, the distribution occurs through a retail format. The marketing
executives from the company visit the credit union members and promote their financial
products and services such as the credit card facility as planned by Collabria to be launched
for the credit union members (Collabria, 2019).
2. Opportunities and Issues Analysis
The opportunities and issues to be faced by Collabria with its proposed marketing strategies
in the credit union industry in Canada are discussed as follows:
Strengths and Weaknesses
Strengths
 The company is operating in the
financial services sector of Canada for
a considerable period of time and
offers high quality of financial
products and services to corporate
clients such as the credit unions
within the country.
 The products and services are unique
such as customized payment solutions
for the credit unions in Canada, which
gives the company a competitive edge
Weaknesses
 There are often problems in
negotiation with the corporate clients
such as the credit unions due to the
lack of prudent management decision-
making.
 The products and services offered are
old and are being offered since a long
period of time which limits the
variety of the financial services
offered to the corporate clients by the

7
E-Commerce & Marketing
over the rival financial service
corporations.
company.
Opportunities and Threats
Opportunities
 The company has the opportunity to
offer new and innovative financial
services and products to the credit
unions and their members, such as the
newly proposed credit card facilities
to the credit union clients within
Canada.
 The company has the opportunity to
serve the individual retail customers
with lucrative financial products and
services because of the significant
growth and development in the retail
banking and financial services sector
of Canada.
Threats
 The threats to the company can be the
several macro-environmental factors
such as the political, legal, economic,
ecological, technological,
environmental and social factors that
might change at any moment
impacting the financial policies of
Canada.
 Threats might also emerge from the
several new financial service
companies as well as the existing
banks and financial service operators,
such as the lending institutions which
might come up with similar financial
services like credit card facilities for
the credit union organizations and
their members.
Issues Analysis
The analysis of the several strengths, weaknesses opportunities and threats to the organization
has revealed some of the critical issues that the management of the company should consider
before implementing the proposed launch of the credit card services for the credit union
members within the country. These issues are related to the analysis of the several
environmental factors and the contemporary scenario of the banking and financial services

8
E-Commerce & Marketing
sector within the country. Based on all these analyses, effective strategic planning is to be
undertaken by the management with the view of launching the credit card services for the
clients (CNW Group Ltd, 2015).
3. Target Market
The details of the target market for Collabria Financial are discussed under the following
sections:
Segmentation
The segmentation process refers to segregating the target customers of a brand on the basis of
various criteria such as demographic, psychographic, behavioral and geographic
segmentation (Gichuru & Limiri, 2017). In the case of Collabria, the demographic
segmentation consists of the credit union members within the banking and financial services
sector of Canada to which the company offers a variety of customized payment solutions.
The management has recently planned to launch the credit card services for the members of
the credit union organizations that are the clients of the company.
Positioning
The positioning strategy of a brand refers to the unique techniques and methods that are
undertaken by the marketing department in order to position the brand in a unique way in the
minds of the target consumers (Ridal, 2018). Positioning enables the consumers to think of a
brand whenever they contemplate about buying a particular product or undertaking a
particular service. The positioning for Collabria with respect to its proposed credit card
services will be as follows “Think credit, think Collabria.”
4. Objectives
The objectives that Collabria Financial endeavors to achieve with its proposed credit card
services to the credit union members in Canada are discussed under the following categories:
Financial
The financial objectives of the company consist of achieving an increase in revenue by
around 10-15% and enhancing profitability by around 5-7% in the first year of offering the
credit card services to the clients.

9
E-Commerce & Marketing
Marketing
The marketing objectives of the organization consist of the strategies which will help to
enhance the current customer base by around 22-30% with effective retention of around 40-
50% off the clients.
Societal
The societal objectives relate to the aims and targets that an organization wishes to achieve in
the domain of corporate social responsibility adherence and also being accountable to the
environmental concerns, with a view towards sustainable living and development of the
community. In this aspect, the objective of the organization is to be able to remain transparent
in all its services towards all the stakeholders, in undertaking ethical and honest business
policies in order to stick to the corporate social responsibility norms and remaining concerned
towards the environment. The objective is to achieve long-term sustainable development of
the nation.

10
E-Commerce & Marketing
5. References
American City Business Journals. (2015). Collabria Financial Services enters market to offer
unique payment solutions for Canadian credit unions, partners with DUCA Credit
Union as first client. Retrieved from
https://www.bizjournals.com/prnewswire/press_releases/2015/05/01/C8206
Canadian Credit Union Association. (2019). Facts and Figures. Retrieved from
https://www.ccua.com/about/facts_and_figures
CNW Group Ltd. (2015). Collabria Financial Services enters market to offer unique payment
solutions for Canadian credit unions, partners with DUCA Credit Union as first
client. Retrieved from https://www.newswire.ca/news-releases/collabria-financial-
services-enters-market-to-offer-unique-payment-solutions-for-canadian-credit-unions-
partners-with-duca-credit-union-as-first-client-517669941.html
Collabria. (2019). Collabria's Story. Retrieved from https://www.collabriafinancial.ca/about-
us/
Collabria Financial Services Inc. (2019). Home. Retrieved from
https://www.collabriacreditcards.ca/
CreditWalk Canada. (2013). Top 5 Best Credit Cards in Canada. Retrieved from
https://www.creditwalk.ca/best-credit-card-canada/
Gichuru, M. J., & Limiri, E. K. (2017). MARKET SEGMENTATION AS A STRATEGY
FOR CUSTOMER SATISFACTION AND RETENTION. International Journal of
Economics, Commerce and Management; Vol. V, Issue 12, 544-553.
Greedy Rates. (2019). Best Credit Cards in Canada 2019. Retrieved from
https://www.greedyrates.ca/blog/best-credit-cards-canada-2017/
IBISWorld. (2018). Credit Unions - Canada Market Research Report. Retrieved from
https://www.ibisworld.ca/industry-trends/market-research-reports/finance-insurance/
credit-unions.html
PESTLE Analysis. (2018). What is PESTLE Analysis? A Tool for Business Analysis.
Retrieved from https://pestleanalysis.com/what-is-pestle-analysis/

11
E-Commerce & Marketing
RASTOGI, N., & TRIVEDI, D. .. (2016). PESTLE TECHNIQUE – A TOOL TO IDENTIFY
EXTERNAL RISKS IN CONSTRUCTION PROJECTS. International Research
Journal of Engineering and Technology; Volume: 03 Issue: 01, 384-388.
Ridal, M. (2018). The Power of Niche Positioning. Retrieved from
https://maltaprofile.info/article/industry-and-manufacturing