MKT8055: Royal Bank of Canada Marketing Industry Analysis Report

This report presents a marketing analysis of the Royal Bank of Canada (RBC), examining its company profile, key facts, and a detailed SWOT analysis. The analysis includes an assessment of RBC's core competency, sustainability initiatives, and a comprehensive industry analysis, including demographic, economic, political, environmental, socio-cultural, and technological factors. It further explores competitor information using Porter's five forces model and provides strategic recommendations for the company's future success. The report concludes with a summary of findings and a list of references.

RUNNING HEAD: MARKETING 0
MARKETING
ROYAL BANK OF CANADA

MARKETING 1
Table of Contents
Introduction.................................................................................................................................................2
Company Profile..........................................................................................................................................2
Company overview..................................................................................................................................2
Key facts..................................................................................................................................................2
SWOT analysis........................................................................................................................................2
Strengths..............................................................................................................................................2
Weaknesses.........................................................................................................................................2
Opportunities.......................................................................................................................................3
Threats.................................................................................................................................................3
Core Competency....................................................................................................................................3
Sustainability Image....................................................................................................................................3
Industry analysis..........................................................................................................................................3
External Environment scanning...............................................................................................................3
Demographic factors............................................................................................................................3
Economic factors.................................................................................................................................4
Political factors....................................................................................................................................4
Environmental factors..........................................................................................................................4
Socio-cultural factors...........................................................................................................................4
Technological factors...........................................................................................................................4
Competitor Information...........................................................................................................................4
Porter’s five model..............................................................................................................................4
Recommendations.......................................................................................................................................5
Conclusion...................................................................................................................................................6
References...................................................................................................................................................7

MARKETING 2
Introduction
Marketing refers to investigate as well as manage the exchange of relationship.
Marketing is considered the procedure of business, which deals in making the relationships by
the consumers which is satisfied (Bryson, 2017). In this report, Royal Bank of Canada is
selected. In this the SWOT analysis, Core Competency, Sustainability image, Industry analysis
of the company is discussed.
Company Profile
Company overview
The Royal Bank of Canada provides financial services to the customers; it is leading
bank of Canada, due to its market capitalization. The company serves more than 16 million
clients as well as has 80,000 staff members globally, it was found in the year 1864. The
corporate headquarters of the company is situated in Toronto, Ontario (Royal Bank of Canada,
Annual Report, 2018).
Key facts
In the year 2017, Royal Bank of Canada was considered Canada’s leading bank, with
about 1.28 trillion dollars of Canadian into the whole assets.
Royal Bank of Canada has extremely well-established brand, mainly in Canada.
However, it is one of the largest important banking brands since 2017. It is due to reason with
12.66 billion dollars of US in the branding value (Badour & Shah, 2018).
SWOT analysis
Strengths
Royal Bank of Canada serves 17 million customers as well as also has more than 80,100
staff members globally. The operations of the company are expanded worldwide that is in
Canada, US as well as other 51 nations. The company has diversity of workforce that is company
provides employment up to 68,480 employees (Royal Bank of Canada, Annual Report, 2018).

MARKETING 3
Weaknesses
The company has lower popularity in comparison to other banks that is the company is
popular mainly in Canada and US. Royal Bank of Canada also has various controversies which
includes biasness problem in United States, oil financing etc (Bakir, 2019).
Opportunities
The company can expand their business through the partnerships, mergers. Royal Bank of
Canada can set up the business in South-east Asia so that it can leverage the raising economies.
Threats
Royal Bank of Canada is influenced by the changing regulatory as well as legal rules in
different countries. The company can also face high competition from Canadian Imperial Bank
of Commerce, The Bank of Nova Scotia.
Core Competency
The core competency of the company leads the values under which the company operates
that are Client first, Collaboration, Accountability as well as Diversity and Inclusion. The
resource based view of the company which helps in gaining the competitive advantage is
trustworthiness, supportive human resource of RBC (Bryson, 2017).
Sustainability Image
Royal Bank of Canada makes the investment to reduce the water pollution, the
investment was up to $7.8 million, and it also supports their consumers by providing them
various opportunities. The company added about $100 million globally, this is done to provide
the support up to 6,700 communities through the diversity as well as inclusivity (Grant, Beed, &
Manuel, 2018). In the year 2018, the company grant up to $2.5 million in NGO’s globally
(Bakir, 2019).

MARKETING 4
Industry analysis
External Environment scanning
Demographic factors
The company main target is the consumer between the age group of 18-35 in Canada; the
company also believes that some of the young costumers are considered profitable for the
company.
Economic factors
The lower rate of the growth in Canada, which is in 2018 it, was 0.4%, which influences
Royal Bank of Canada, because this results in lower demand. In 2018, the interest rate is
increased that is in 2019, the interest rate is 1.75% (Wood & McConney, 2018).
Political factors
The increase in the tax rate that is in 2019, for income up to $47,630 to $95,259 the tax
rate will be 20.5%, this affect the company to earn profits. The regulations in Canada, which is
mainly for banking that is Bank Act, impose the requirements of ownership which leads that Act
prohibited a individual to being a shareholder with the equity of $12 billion (Grant, Beed, &
Manuel, 2018).
Environmental factors
In the year 2018, the government introduced various laws which are followed by the
Bank that is Canadian Environmental protection Act 1999. However, company takes various
initiatives to protect environment, this leads in increasing the revenue in 2018, which was
$12,431 million (Wood & McConney, 2018).
Socio-cultural factors
In Canada the rate of population rise , which was in the year 2018 it was 528,421 and the
new migration rate was 425,245, this influence Royal Bank of Canada positively (Nyström,
Barnes, & Tremblay, 2018).
Technological factors
In 2019, the strategy of the company is to focus on adopting the AI-powered algorithms
to search the higher data as well as helps in Royal Bank of Canada to enhance the financial lives
on daily basis (Royal Bank of Canada, Annual Report, 2018).

MARKETING 5
Competitor Information
Porter’s five model
New entry threats
Threats of new entry are high because Bank can bring the new innovation as well as new
methods of performing work, this influence Royal Bank of Canada.
Suppliers bargaining power
The supplier bargaining power is low, because the industry of money center bank
purchases the raw materials by the various suppliers (Thakar, 2019).
Buyers bargaining power
The bargaining power of the buyers are high because they have numerous options, they
will purchase better offering which is available by giving lower prices (Lim, Olanrewaju, Tan, &
Lee, 2018).
Substitute threats
The threats of substitute is high because of majority of the banks, such as Canadian
Imperial Bank of Commerce, The Bank of Nova Scotia offer same services.
Existing Competitors Rivalry
The main competitor of the company is Canadian Imperial Bank of Commerce, which
holds $48.73 billion market capitalization, the main strength of the company is having more
talented and competent employees, that is in the year 2018 it has 44,220 employees (Nyström,
Barnes, & Tremblay, 2018). The weakness of the bank is that it lags behind from four leading
Canadian banks in conditions of retail clients. In 2018, the company provided the financing of
$1.5 billion for the projects of renewable power (Shah, Wu, & Korotkov, 2019). The company
operates in three business lines that are Retail and Business Banking, managing Wealth
Management as well as Wholesale Banking. The new approach of the bank is providing wide
services on the mobile devices.

MARKETING 6
Recommendations
The key success factors to making success in the industry are to invest more on
sustainability, innovation like adopting beacon technology. In future the industry will be highly
profitable because many banks take the initiatives in satisfying the customer at higher level. The
sustainability is the current industry player in the industry because it helps the company to
operate under the regulations, leads in increasing the customer value as well as profits of the
company.
Conclusion
From the above it is conclude that, Royal Bank of Canada is the leading bank of Canada,
the company has various opportunities to operate their business in South-east Asia. It takes
various initiatives for the sustainability such as reducing water pollution etc. The company is
operating in highly competitive environment and can invest more on sustainability and
innovation.

MARKETING 7
References
Badour, A., & Shah, S. (2018). Cryptocurrency Regulation in Canada. Includes Chapter News ,
31 (1), 35.
Bakir, C. (2019). How do mega-bank merger policy and regulations contribute to financial
stability? Evidence from Australia and Canada. Journal of Economic Policy Reform , 22
(1), 1-15.
Bryson, J. M. (2017). Strategic Planning for Public and Nonprofit Organizations: A Guide to
Strengthening and Sustaining Organizational Achievement. Hoboken: John Wiley &
Sons.
Grant, J. L., Beed, T., & Manuel, P. M. (2018). Integrated community sustainability planning in
Atlantic Canada: Green-washing an infrastructure agenda. Journal of Planning Education
and Research , 38 (1), 54-66.
Lim, X. Y., Olanrewaju, A. L., Tan, S. Y., & Lee, J. E. (2018). Factors determining the demand
for affordable housin. Planning Malaysia Journal , 16 (6).
Nyström, C. D., Barnes, J. D., & Tremblay, M. S. (2018). An exploratory analysis of missing
data from the Royal Bank of Canada (RBC) Learn to Play–Canadian Assessment of
Physical Literacy (CAPL) project. BMC public health , 18 (2).
Royal Bank of Canada, Annual Report. (2018). Retrieved 9 20, 2019, from Annual Report:
https://annualreports.rbc.com/ar2018/
Shah, A. A., Wu, D., & Korotkov, V. (2019). Are sustainable banks efficient and productive? A
data envelopment analysis and the Malmquist productivity index analysis. Sustainability ,
11 (8).
Thakar, S. H. (2019). INTERNET OF THINGS AND BANKING INDUSTRIES: CHANGING
CUSTOMER SERVICE EXPERIENCE IN CANADA. LIBRARIANSHIP
DEVELOPMENT THROUGH INTERNET OF THINGS AND CUSTOMER SERVICE ,
82.

MARKETING 8
Wood, A., & McConney, S. (2018). THE IMPACT OF RISK FACTORS ON THE FINANCIAL
PERFORMANCE OF THE COMMERCIAL BANKING SECTOR IN BARBADOS.
Journal of Governance and Regulation/Volume , 7 (1).