Barclays Bank Marketing Plan Essay

Barclays Bank Marketing Plan Essay

The confirmation considers Barclays‟ resilient performance throughout the crisis, its sizable
global investment banking franchise, which has become a more significant contributor tooverall results following the 2008 acquisition of various businesses of Lehman Brothers, and
the Bank‟s strong market positions in other key businesses. Today‟s action also considersBarclays‟ improved capitalisation, its sound liquidity profile, and its ability t
o generatecapital organically thanks to its considerable earnings capacity. Indeed, these are all key
factors underpinning the rating. In revising the trend to Stable, DBRS recognises Barclays‟
stable, and in some cases, improving trends across its key businesses despite the difficult
operating environment of the past two years. The uncertainty surrounding the Bank‟s ability
to generate acceptable levels of earnings in the face of a slowing global economy was a keyfactor considered in the now former Negative trend.Profitability & future growth potential: For 2010, Barclays reported profit before tax of avery solid GBP 6.1 billion on income of GBP 31.4 billion. Compared to 2009 and excludingthe gain on the sale of Barclays Global Investors (BGI), profit before tax increased 32%while income was 8% higher as compared to 2009. Earnings benefited from much lowerimpairment charges. By segment, Bar Cap was the largest contributor, generating profitbefore tax (excluding own-credit) of GBP 4.4 billion in 2010, a 2% increase year-on-year.
SWOT ANALYSIS (Strengths and weaknesses, opportunities and threats)Strengths

Barclays has a widespread global presence, allowing it to spread risk and enjoyeconomies of scale.

The Barclays brand is well-established historically and continually promoted, forexample through sponsorship of remier League football.

Barclays is particularly associated with innovation. It brought out the first credit cardin 1966, and has continued to develop cards, most recently the One Pulse cardcombing Oyster, cashless and credit functions for London-based customers.

The opening of several new flagship branches along with a refurbishment programmecan be seen as an attempt to refocus on customer demands for a strong presence onthe high street (see threats).
Weaknesses

Services provided in Zimbabwe to individuals connected with Zanu PF have
generated controversy and raised questions about Barclays‟ ethical position: investors
are increasingly concerned about ethics.

Large bonuses for Directors have attracted unwanted attention from commentators,
and it has been speculated that the bank‟s reluctance to take financing from the UK
government is because that would end its autonomy with regard to bonuses.

Plans to expand in Asia were limited when Barclays were outbid for ABN Amro in2006, and alternative expansion plans have had to be adopted.

The bank does not plan to pay dividends on its shares until the second half of 2009,making them less attractive to investors.
Opportunities

Barclays was keen to acquire some of Lehman‟s assets prior to its collapse: after the
collapse, they have been able to negotiate a better deal with liquidators which alsoallowed them to be very selective in which parts of the business they acquired

The b
ank‟s strategy is to offer a full portfolio of services worldwide, providing a
wide range of cross selling opportunities.
Asia is still considered an opportunity for Barclays‟ expansion, and operations are
being set up in a number of locations.
Welfare provision has decreased in many countries because of the cost togovernments, and Barclays sees self-provision as an increasing trend that it canutilize.
The court recently found that Barclays banking charges, which had been challengedlegally, were enforceable, thus repayment is not necessary and charges can continueto be enforced.
Threats

If the economic downturn is prolonged, acquisition of Lehman‟s assets could prove
to be a mistake.

Barclays has been accused of moving loss-making investments associated with thesub-prime market from its accounts to those of other investors, and there is a risk itmay be sued.

While offering a wide range of services provides opportunities, there is also the threatthat customers may prefer to go to suppliers who present a more specialized approach.

Barclays acquired a reputation for closing branches because of a high incidence of this in 2000, and competitors have been able to position themselves as moreconsumer-friendly through a strategy of keeping branches open.

The Asia expansion is seen as risky given that Barclays are in a less strong positionthan banking industry leaders regarding capitalization, and this may detract investors.
Competitors
Barclays Bank is the fourth largest bank in UK. Its main competitors are

Bank of Ireland

Deutsche Bank AG

HSBC Ho…………………..