1. The SWOT analysis can be applied to this case as it can be applied with most companies around the world. First of all Cash Connections catered to a segment of the market that found it difficult to get money approved to borrow. It also served people who did not deal with banks (unbanked) and (under banked) individuals. They also offer easy repayment plans that could be re-negotiated if the customer could not come up with the repayment. They also expanded their business and were able to open many more locations to serve a wider population.
The mentioned about points would be the strengths of the company which also exhibited weaknesses as well. Porter’s five forces are also applicable to Cash Connections because Cash connections has to be aware that their substitutes in their market that are much bigger and have that competitive advantage. Buyers who are their customers also have power because they will not come to Cash Connections if the rates are too high and there are others offering lower rates. New entrants are also a factor because that means increased competition and potential loss of market share.
On the macro environment side of Porter’s five Forces, economic conditions play a big if not most important role. This is because based on the economic conditions it will dictate how much people will be willing to use their services. Legislation is also very important because if the government steps in and puts regulations and limitation to where and how they can operate it will affect their business. Population and demographics also impacts their industry because they need to be in region that people are willing to use their services. . The Strongest of Porter’s Five Forces that is acting on Cash Connection would have to be Rival Firms. In North America the banks are the hardest to compete with and that is exactly who Cash Connection are going up against. They also have to deal with other fast cash providers that can provide lower interest rates and better repayment plans than they can. Also when their rivals are dissatisfied with their current market position they will be more aggressive which Cash Connection has to keep up with as well.
With the market so saturated and many companies like Cash Connections, market share will be hard to get and maintain as Cash Connections has seen. It is difficult to stay innovative and unique when there are so many others in the industry trying to do the same service and gain market share. Also with the economy in the state that it is, customers will be very hesitant to go into further debt and may take other, more attractive offers from rival firms.