Competitor Analysis of Westpac Bank

This essay analyzes the competitors of Westpac Bank and their impact on the market. It identifies direct and indirect competitors and discusses their strategies. The major competitors include Commonwealth Bank, National Australia Bank, Australia and New Zealand Banking Group, Citi, Coles, and Wesfarmers.

Running head: MARKETING
Marketing
Name of the Student
Name of the University
Author note

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Introduction
In the current business environment, there is high level of competition present in the
market and due to which it affects the growth of the companies in contrast to the competitors.
The main purpose of the competitor analysis is to analyze the strengths as well as weaknesses
of the different competitors within the market along with identification of the strategies
which will be providing the company with distinct competitive advantage. Moreover, the
barriers can be developed for preventing competition in entering in market and the
weaknesses can be exploited. The main purpose of essay is to identify the different
competitors present in market and analyze their impact on Westpac Bank.
Overview of Westpac Bank
Westpac Banking Corporation is one of the Australian banks as well as financial
services provider which is headquartered at Sydney, Australia. The company was
incorporated in year 1817 and the areas served by them is worldwide. The key people
involved in the processing of the different activities in bank includes Brian Hartzer (CEO),
Lindsay Maxsted (Chairman) and Peter King (CFO) of Westpac Bank. There has been
increase in the revenue of the company of A$ 22 billion till the year 2018 and the number of
employees employed at Westpac Bank is 35029 (Westpac.com.au, 2019).
Identification of Competitors of Westpac Bank
As per the different surveys, it can be seen that the major competitors of Westpac
Bank include Commonwealth Bank, National Australia Bank and Australia and New
Zealand Banking Group. As per the analysis of percentage of market share in the Australian
economy, it can be seen that the market share of Commonwealth Bank amounts to 2,600.5
crores AUD till the year 2018, Westpac Bank has 2,200 crores AUD of revenues till the year
2018, National Australia Bank’s share in the market amounts to 1,910.1 crores AUD till the

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year 2018 and Australia and New Zealand Banking Group’s revenue in the market is 2,107.1
crores AUD till 2018.
Analysis of Ways to Find Competitors
For competing in the market, it is essential to analyze and identify the level of
competition that can affect the growth and effectiveness in the market. There are different
ways through which the competitors can be identified which will be playing a suitable role in
understanding their position in market and it can be advantageous in cultivating their
efficacy.
Direct Competitors- It is considered to be the situation in which there are two or more
businesses which offer the similar kind of services which are essentially same in nature and
such businesses are competing in the similar market which is potential (Wu & Li, 2018). The
direct competitors can be identified from different online social media communities, feedback
from the different customer as well as market related research.
Indirect Competitors- It is considered to be the conflict between the various vendors
or the different services are not similar, however it helps in satisfying the same needs of the
customers. It is of huge contrast with the direct competition wherein the different businesses
are selling products or services which are essentially proved to be the same (Patrutiu-Baltes,
2016). The indirect competitors are identified by analyzing the Search Engine Optimization
Results Page along with search through keywords which assists the customers in
understanding the different competitors.
Listing and Ranking Five Direct and Indirect Competitors
Commonwealth Bank- It is the first major competitor of Westpac Bank as the bank
owes different brands such as Bankwest, Commonwealth Securities and Commonwealth
Insurance Limited. There are different products and services offered by the company which

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includes Mortgages, Credit Cards, Investment Management along with Corporate Banking.
The revenue or the market share of the Commonwealth Bank is higher than Westpac Bank
which attracts a greater number of customers in the market (Commbank.com.au, 2019).
National Australia Bank - It is the second main competitor of Westpac Bank as it is
one of the leading financial players with diverse range of products and services and it is
considered to be the Australia’s largest business in terms of assets (Nab.com.au, 2019). The
respective bank offers the customers with different kinds of services that includes
diversification of the portfolios for the different customers which makes them unique in terms
of providing services.
Australia and New Zealand Banking Group- It is the other competitor of Westpac
Bank which is largest business in terms of market capitalization and it helps them in
improving the growth of the same in the market of Australia that encourages them to improve
the market share and attract more investors in comparison to Westpac Banking Corporation
(Australia and New Zealand Banking Group, 2019).
Citi- Citi is one of the indirect competitors of Westpac Bank as the main aim of the
company is to provide affluent services to customers and deliver the different lifestyle related
benefits. There are different kinds of offers and discounts available for the different
customers that enhances the growth of the company in comparison to other competitors
(Citigroup.com, 2019).
Coles and Wesfarmers- These are the two other major indirect competitors of
Westpac Bank that are suitable in offering the customers with no annual fee credit cards and
rewards credit card and the credit cards which are suitable for different kinds of shoppers
(Wesfarmers.com.au, 2019).
Competitor Analysis Grid

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Competitors Company
Related
Information
Data of
Products as
well as Services
Data of
Customers
Foundations of
Competitive
Advantage
Commonwealth
Bank Australia
It is the
multinational
corporation of
Australia with
their business
across Asia,
New Zealand
and United
States and the
company was
incorporated in
the year 1911
The products
and services
offered by
Commonwealth
Bank includes
finance and
insurance, credit
cards, loans and
mortgages
along with
corporate and
customer
banking
It serves more
than 15.9
million
customers
which includes
corporate and
individual
clients
The product
leadership is the
main aspect of
gaining
competitive
advantage in
comparison to
the other
competitors and
it helps them in
becoming the
top and largest
leaders in
Australian
banking sector
National
Australia Bank
It is the fourth
largest financial
institutions in
Australian
market for the
capitalization of
market and
The different
products and
services which
are served by
the company
includes the
wholesale
Individual
Clients are
considered to be
the major
customer of
NAB and it
helps them in
The customer
satisfaction
plays a vital
role in
managing the
effectiveness of
the company

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earnings along
with customers
and NAB has
“AA” long term
issuer that has
been rated by
Standards &
Poor’s
banking,
insurance along
with business
banking that
impacts the
expanding of
the business
suitably that is
essential for the
company’s
effectiveness
improving their
growth
prospects in an
efficient manner
and through
which it has
enhanced their
effectiveness in
delivering
appropriate
services to the
customers in
comparison to
the other
competitors
such as Westpac
or
Commonwealth
Bank
Australia and
New Zealand
Banking Group
It is considered
to be the
Australian
multinational
company along
with financial
services
company and
the largest
company in
The core
products and
services which
are delivered by
Australia and
New Zealand
Banking Group
includes the
issuing of credit
cards and
The main
clients of the
company
include the
corporate
clients along
with private
clients which is
inclusive of free
tradesmen or
The bank gains
competitive
advantage in the
market through
offering the
customers with
premium
services and the
price advantage
and the bank

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terms of the
market
capitalization
private banking
aspects along
with corporate
banking that
makes them
efficient in
fulfilling the
different needs
of customers
suitably
professionals
that will be
suitable for
expanding their
business
could be
suitable in
developing
unique process
related to
operating which
makes them
efficient
Citi Group Inc It is considered
to be the
American
multinational
investment bank
along with
financial
services which
offers the
customers with
the different
kinds of
products and
services such as
offering credit
The main
products
include the
different credit
or debit cards to
the different
customers that
helps them in
financial
analysis in a
suitable manner.
Major
customers of
Citi group Inc
in Australian
market include
the different
shoppers and
the others which
includes
corporate
clients for
offering the
employees with
various benefits
related to credit
The competitive
advantage is the
internet banking
along with
providing
customers with
similar banking
services at a
lower interest
rate

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cards to the
customers
cards
Coles and
Wesfarmers
These are the
two major credit
card companies
in Australian
economy and
the main aspect
of the
companies is to
provide the
customers all
the credit and
debit card
facilities within
a span of very
less time
The different
products and
services include
the different
kinds of
offering of
credit cards and
different debit
cards which is
suitable for all
types of
shoppers that
helps them
effectively to
improve their
growth
prospects
The main
customer base
includes the
various
shoppers of
different
income groups
The competitive
advantage is the
offering of
credit cards to
the different
customers at no
annual fee
Assessment of Current and Future Objectives and Strategies of Competitors
Current and Future Objectives of Commonwealth Bank
 To incorporate artificial intelligence aspect which will be attracting different group of
customers (Palmatier, 2018)

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 To provide the long-term capital to the different members for the reconstruction of
economy (Morgan et al., 2019)
Strategies of Commonwealth Bank
Target Market
The main target customers of Commonwealth Bank include the majority of the
customers who are tech savvy along with young individuals who are more inclined towards
products which are persuaded towards technology. However, in future, the company will be
including the different customers form various income groups which will be suitable for
increasing their revenues and sales with less interest rates (Kotler et al., 2015).
Marketing Mix
Product- It includes the premium services along with retail banking services provided
to the different customers and become effective.
Price- Aggressive pricing policy is followed by them and it has become most
competitive, however in the future, the company will be trying to adopt the less aggressive
strategy which can be suitable for attracting a greater number of customers (Key &
Czaplewski, 2017).
Place- The company has worldwide presence and it will be continuing in the future
(Jackson & Ahuja, 2016)
Promotion- The different promotional advertisements during cricket shows help them
in making their presence effective.
Marketing Aspects

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Commonwealth Bank needs to incorporate the less interest rates on fixed deposits that
will be suitable for them in attracting different group of customers which will be effective in
managing their growth and improve their efficacy suitably.
Current and Future Objectives of National Australia Bank
 To provide proper guarantee on private loans or the capital investment
 To provide loans for the different productive activities on considerable conditions
(Išoraitė, 2016)
Strategies of National Australia Bank
Target Market
The major target market of National Australia Bank includes the differentiated
targeting aspect for the majority of the services.
Marketing Mix
Product- It includes the different insurance or wealth management prospects which
helps in attracting customers.
Price- It includes the clear-cut pricing policy that is suitable for them in dealing in the
competitive business environment and it enhances their growth prospects in the market.
Place- The company has their presence in different parts of the world and the place
acts as the distribution channel for the different banking facilities (Fan, Lau & Zhao, 2015).
Promotion- There is indirect and direct competition which helps the company in
lending benefits to customers (Datta, Ailawadi & Van Heerde, 2017).
Marketing Aspects

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The main focus areas of marketing include the development of products on rural areas
along with innovations on the product promotions which will be suitable for growth of the
company.
Current and Future Objectives of Australia and New Zealand Banking Group
 To promote the different capital type of investments in different member countries by
providing proper guarantee on private type of loans
 To ensure and provide the different long-term capital kind of investments for assuring
the BOP kind of equilibrium (Cacciolatti & Lee, 2016)
Strategies of Australia and New Zealand Banking Group
Target Market
The major target market or customers of the respective bank includes the young and
middle-aged customers who are tech savvy which will be suitable for them in improving the
growth prospects of company (Australia and New Zealand Banking Group, 2019).
Marketing Mix
Product- It includes the different kinds of banking facilities for the different corporate
and individual clients.
Price- It uses the undifferentiated kind of pricing policy that is suitable for them in
managing growth of company.
Place- The company has their presence in different parts of the world and it includes
the Australian economy.
Promotion- It includes the different direct competitive policies that will be suitable for
them in managing effectiveness (Australia and New Zealand Banking Group, 2019).

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Marketing Aspects
The main marketing aspects include the different kinds of effort to drive out of
competition and the aggressive pricing policy can be adopted for the development of product.
Current and Future Objectives of Citi and Coles and Wesfarmers
 To provide the different group of customers varying in income with the different
credit and debit card facilities without any kind of annual fee
Strategies of Citi
Target Market
The major target customers of these two credit card companies or indirect competitors
of Westpac includes the different age group customers with various income groups that will
be improving their growth objectives.
Marketing Mix
Product- It includes credit and debit card facilities that is suitable in improving
effectiveness
Price- The pricing policy includes the competitive pricing aspects which differentiates
them from other competitors
Place- The place includes the overall world wherein the customers will be gained
through such aspects
Promotion- There can be promotional events such as through social media that can be
helpful for growth of companies.
Marketing Aspects

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The product promotions are the crucial element which needs to be incorporated by the
companies as it will be helpful in making the different customers know regarding the services
provided by them.
Conclusion
From the overall analysis, it can be inferred that the competition analysis of Westpac
has been helpful in understanding the major competitors that could have affected the growth
of the company. The major competitor such as Commonwealth Bank is trying to attract large
group of customers along with indirect competitor such as Coles and Wesfarmers who are
offering credit and debit cards to the customers of different income groups without any kind
of annual fee which helps them in improving their effectiveness. In such scenario, the
different recommendations such as understanding the market can be beneficial in improving
their effectiveness and growth prospects in the market.

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