Situational Analysis
Introduction:
IDS Financial Services ope valuate in the consumer fiscal serve well industry. After the acquisition by American Express in 1984 the company went through tremendous growth for three neat years in terms of revenue (average 30%), monetary plan fees (174%) and its sales force (annual rate11%). The company was facing naked as a jaybird challenges as to how to maintain this 30 percent growth rate in the market place where the competition was increasing twenty-four hour period by day. The consumer pecuniary industry is growing very refrain which creates new opportunities to be exploited. With this the competition is also growing as the competitors are becoming more and more aggressive in marketing and selling their products. Now the company is pondering on what should be the strategy in future so that it will come out as a winner. In station to get a comprehensive picture of the situation, the analysis is shared out into four sections, Customer, Compititor, Company and Context as follows.
Customer:
The target customers were to begin with those people who had annual income of more than $25000. There were mainly both types of consumers as confident investor and advisor-dependent. As far as financial plan was concerned, there was less chance in movement of confident investors as these people were more educated and had the susceptibility to manage their own financial needs.
The real opportunity lies in targeting the advisor-dependent investor as they dont have time or interest in self financial management. People generally go for financial plan when they require long term investment for just about future benefit like career advancement, approach of retirement, corrupt of house, inherited wealth etc. There is huge possible of income from financial plan as 9.17 ((42 million* 84%)* 26%) million people are ready to go for a financial plan within next 12 months as per a market survey.
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