Lloyds Bank Strategy Case Study
Key Learning Outcomes
- Analyse the UK banking industry and how the five forces have affected Lloyds bank, as well as domestic rivals and the impact on industry structure, attractiveness, and profitability.
- Understand how Lloyds bank manages to defend against intense competition from fellow Big 4 rivals such Barclays, HSBC etc, and the strategies it uses to create 'blue oceans' that are defensible, helping it capture and maintain top position.
- Analyse the various strategic business units in Lloyds bank's portfolio and assess which ones are the stars and cash cows generating the most value, or the question marks, and dogs that may need further investment or divesting to achieve a balanced portfolio.
- To apply strategy business models and frameworks such as Porters five forces, BCG matrix etc. to real company cases.
1.0 INTRODUCTION
The banking and insurance industry in UK is highly competitive with four major players namely Barclays, HSBC, Lloyds and the Royal bank of Scotland. Lloyds bank is also the second biggest bank in UK according to assets, having over 0.81trillion GBP in 2017 with major competitors HSBC, and RBS having 1.89trillion GBP and 0.75trillion GBP respectively (Statista 2018).