Previously, we evaluated one of the leading global financial institutions, Wells Fargo. This time we will look at the SWOT analysis of ING in-depth.
ING – International Netherlands Group is one of the Netherlands leading brands in the banking & financial services sector. Just like HDFC, one of the most successful banks in India, ING maintains its prominent position in the market by great strategies. That’s why we are going to conduct a SWOT analysis of ING.
One of the reasons why ING organization grew so large and maintained its position in this highly competitive sector is its marketing efforts. Marketing is evolving as the world moves online, so if you want to learn more about marketing and its digital aspect, check out IIDE Free Digital Marketing Masterclass by Karan Shah the founder and CEO of IIDE.
Before we perform a detailed SWOT analysis of ING for you in this blog, let’s first have a brief understanding of the ING – International Netherlands Group.
The ING (International Netherlands Group) is a Dutch multinational banking and financial services corporation headquartered in Amsterdam. Its Chairman and CEO, Steven Van Rijswijk, currently has an approval rating of 66%.
It is one of the world’s largest banks, consistently ranking among the top 30 largest banks worldwide. The International Netherlands Group was formed in 1991 by the combination of Dutch insurance company Nationale-Nederlanden and national postal bank NMB Postbank Group.
Do you know what does the lion stands for in their ING Logo? ING’s orange lion goes back to its Dutch roots. Netherlands national colour is Orange and the lion is the country’s national symbol.
(Source: Google Images)
Quick Stats About ING
|Founder||NN Group, NMB Postbank|
|No. of Employees||55,901 (2020)|
|Market Cap||$57.92 Billion (2021)|
|Annual Revenue||€17.637 Billion (2020)|
|Net Income/ Profit||€2.485 Billion (2020)|
Services by ING
ING provides its products and services to individuals, small, medium-sized enterprises, and mid-corporates serves more than 34 million customers. Its services include:
- Retail & Wholesale banking
- Private banking
- Investment banking
- Commercial banking
- Asset & Insurance management
Competitors of ING
As the financial sector is one of the leading competitive sectors, ING faces competition from various businesses such as:
- Wells Fargo
- ABN AMRO.
Now that we understand the organization’s midst business, let’s dig into the SWOT Analysis of ING.
SWOT Analysis of ING
(An ING Bank in Nieuw-Vennep, the Netherlands)
SWOT analysis is a crucial strategic planning tool that helps in evaluating the existing Strengths (S), Weaknesses (W), Opportunities (O) & Threats (T). It enables the managers to do the situational analysis of the firm.
Let’s dive into the SWOT analysis of ING to make things clearer for you.
Strengths of ING
A strength is a resource or capacity the organization can use effectively to achieve its objectives. ING (Banking) has numerous strengths that enable it to thrive in the marketplace.
- Good Returns on Capital Expenditure: ING is relatively successful at the execution of new projects and has achieved good returns on investment by creating new sources of income.
- Skilled Labor force: Successful training and learning programs have resulted in a highly competent workforce. ING invests heavily in employee training and development, resulting in a workforce that is not just highly skilled but also driven to achieve more.
- Strong Free Cash Flow: ING has strong free cash flows that provide the company with resources to expand into new projects.
- Social Media: Huge organisations are leveraging such tools to stay relevant and are seeking specialists for the same, so if you are interested in the field, check out our social media marketing course to get started.
- Distribution and Reach: ING has a huge number of outlets in practically every state, backed up by a strong distribution network that ensures its services are easily accessible to a large number of consumers on time.
- Financial Position: ING Banking has a good financial position, with five years of continuous earnings and profit reserves that can be utilized to finance future capital expenditures.
- Cost Structure: The low-cost structure of ING enables it to produce at a low cost and offer its products at a cheap price, making it affordable to its clients.
Weaknesses of ING
Weaknesses are the areas in which a company can improve itself through SWOT analysis and use its competitive advantage and strategic positioning. The areas in which ING can improve upon are:
- Research and Development: Despite spending more than the industry average on research & development, ING spends far less than preferred industry companies who have gained a major edge as a result of their unique products.
- Integration: ING’s current structure and culture have failed concerning various mergers aimed at vertical integration.
- Organization structure: Organization structure is only compatible with the present business model thus limiting expansion in adjacent product segments.
- Low work morale: The performance appraisal is not in a systematic manner. People are usually not evaluated for their performance. Employee morale suffers as a result, as do growth opportunities.
- Low Liquidity: The company has low levels of current assets compared to current liabilities, and this can create liquidity problems for it in operations.
- Rented Property: ING has a considerable amount of property that is rented rather than purchased. It needs to pay a lot of rent on these, which adds to its expenses.
Opportunities of ING
Opportunities are external factors that can provide an organization with a competitive advantage. Some opportunities that ING can use for further expansion are :
- Developments in Artificial Intelligence: ING can use developments in artificial intelligence to better predict consumer demand, cater to niche segments, and make better recommendation engines.
- Internet: The number of people who use the internet has increased all over the world. And ING has started taking advantage of this opportunity to expand its online presence by interacting with its customers via e-commerce. So, if you also want to learn, check out our e-commerce management course & create your e-commerce website.
- Globalization: ING Banking is not limited to its own country as a result of increased globalization. It can expand its operations to other countries, allowing it to enter these markets and take advantage of the opportunities that exist.
- Population: The population has been increasing and will continue to do so in the coming years. This is beneficial to ING since it increases the number of potential consumers it can target.
- Tax Policy and Subsidy: The governments’ reduction in tax rate and subsidy announcement on the sale of environmentally friendly goods is beneficial for ING as a lower amount would be expensed out as a tax and can focus on these environmentally friendly products to make use of this opportunity.
Threats of ING
Threats are macro-environment factors and developments that can hinder the business model. Some of the threats which can derail ING Group are :
- Suppliers: Supplier bargaining power has increased over time as the number of suppliers has decreased. This implies that ING’s input costs could rise.
- New Entrants: There have been numerous players who have entered the market and are gaining market share by acquiring the market share of existing companies. This poses a risk to ING because it may lose customers to these new entrants.
- Technological developments by competitors: Customers attracted to new inventions by a few competitors within the industry constitute a threat to ING, as customers drawn to this new technology may be lost to competitors, reducing ING’s overall market share.
- Exchange Rate: The exchange rate is constantly fluctuating, which affects a company like ING, which has international sales but local suppliers.
- Volatile Market: Consumer tastes are shifting, putting pressure on businesses to constantly adapt their products to meet the needs of these customers.
This ends our elaborated SWOT analysis of ING. Let us conclude our learnings below.
ING is a Dutch international financial institution that provides a wide range of banking services.
Meanwhile, ING underwent a decade of tremendous growth, primarily by autonomous expansion, while important overseas acquisitions were also made.
We can see from the SWOT analysis of ING unique selling proposition (USP) is that it is one of the largest banks in the world and one of the top ten largest European companies by revenue.
Also, with an increase in users’ online presence, the company can take advantage of digital marketing opportunities to grow and stand out in this massive market. In a changing landscape where digital marketing is of utmost importance, being well versed in the field is a must for all marketing enthusiasts. If you are interested in learning more and upskilling, check out IIDE’s 3 Month Advanced Online Digital Marketing Course to know more.
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