Royal Bank of Canada Case Study

Introduction of Royal Bank of Canada Case Study

Royal Bank of Canada is a multinational company that is situated in Canada. It is the largest bank in Canada and it is achieved by market capitalization. The company is founded in Halifax, Nova Scotia in 1864. The corporate headquarter of the Royal Bank of India is situated in Toronto and the head office of the company is in Montreal. In 2017, the Royal Bank of Canada secured a place in the Financial Stability Board's list of global systemically important banks. Royal Bank of Canada is one of the largest banks in Canada. In addition, it is the largest bank in the world based on the capitalization of the market (RBC, 2022a). Royal Bank of Canada applies the strategies, performance and commitments to Environmental, social and Governance topics. Royal Bank of Canada offers various roles that are beneficial for the goals, backgrounds and talents of the person. Another major contribution of the company in the community is helping the clients to survive in the community and assist the community to develop via delivering strategic initiatives. The advantages of these efforts are measurable impacts on society, the economy and the environment. In addition, the Royal Bank of Canada has developed various programs and provides support that will assist the young generation to realize their full potential. Royal Bank of Canada is building sustainable and inclusive economies. The company is looking for opportunities to support the communities and initiate various initiatives and programs.

Vision and Mission Statement of Royal Bank of Canada

The Mission Statement of the Royal Bank of Canada is "Helping clients thrive and communities prosper." The Vision Statement of the company is "To be among the world's most trusted and successful financial institutions." In today's digital world, the expectations of the client are shifting continuously. Therefore, to meet the demands of the clients, the Royal Bank of Canada is focusing on the journey to transform the facilities of the bank. The strategy of the Royal Bank of Canada is inventing new technologies and creating an exceptional digital experience for clients. RCB believe that they have to reconstruct the role they play in the lives of the clients that will assist them to stay connected with the customers and maintain relevance. To accomplish the mission and vision of the company, the Royal Bank of Canada focuses on a strong values-driven culture (RBC 2022b). The strategies of RBC make this company become the first choice of the client. Royal Bank of Canada collaborates with other members of society to deliver the best service to the people in society. RBC takes ownership of collective and personal high performance. Royal Bank of Canada motivates the diversity that is essential for growth and innovation. RBC believes in integrity which assists the company to hold to the highest standards necessary for building trust. There are various goals of the company. In Canada, RCB become the undisputed leader in financial services. In the US, the goal of the company is to become the preferred partner to institutional, corporate and clients and their businesses.

Royal Bank of Canada Situation Analysis

RBC is the largest bank in the world based on a share in the market and capitalization. The company is one of the leading diversified financial service companies in North America. The business segment of the company is meant to deliver commercial and personal banking, delivery services that are related to the management of wealth, insurance, investment banking, and transaction processing services. To achieve this, the company has employed around 79000 full and part-time employees (RBC 2022c). The responsibilities of the employee are to deliver to personal, public sector, businesses, and institutional clients which is approximately 18 million in Canada, the US and other countries. The global expansion strategy of the Royal Bank of Canada will deliver new opportunities to diversify the revenue streams, grow its earning base, and improve the wealth management and capital market businesses. To deliver value to the clients, the company is sustaining a high-performance, high-employee engagement culture. Royal Bank of Canada is committed to the path of environmental sustainability. It is achieved by decreasing the environmental footprint, promoting business activities that are environmentally responsible offering products and services that are environmentally responsible. Royal Bank of Canada has been the leader in environmental management for several years.

Industry structure and Economic Feature

Like other industries, the Royal Bank of Canada deliver returns to the shareholders, create employment, pay taxes, and purchase goods and services. As RBC is a financial service company, therefore, it delivers loans, information, advice and services to clients. RBC supports small businesses, innovation, development of the community and entrepreneurship. Royal Bank of Canada believes that it is the responsibility of the company to simulate and grow the economy responsibly and sustainably. The approach of the company is supporting the small business sectors that include products, services and expertise. It is investing in community economic development initiatives that generate environmental and social benefits along with financial return. An example of financial return is services and programs that assist the aboriginals and newcomers in the industry. Royal Bank of Canada is investing in the development of the infrastructure project via municipal finance and private-public partnerships. RCB supports entrepreneurship and innovation via investing in knowledge-based companies and funding programs (RBC 2022b). The outcome is the promotion of new ideas and commercialization of the products. The company supports the economic think tank that is renowned for its research and share knowledge. RBC provide access to banking services and the capital is necessary to assist create wealth and economic sustainability in Aboriginal communities. The initiatives will assist in the economic development of Aboriginal communities, support newcomers to Canada, deliver infrastructure development projects, assist in US municipal markets, and role in the public-private partnership.

Royal Bank of Canada's strategic

Business level strategies

The commercial and Personal banking operations in Canada are branded as the Royal Bank of Canada Royal Bank in English and Royal Bank of Canada Banque Royale in French. There are approximately 1209 branches of the company and it serves around 10 million companies. The Royal Bank of Canada is a US banking subsidiary that was operated approximately 439 branches in the southeastern US (IIDE 2022a). The company provides cross-border banking services to Canadian visitors. Royal Bank of Canada Capital Markets is Royal Bank of Canada's global investment and corporate banking subsidiary. On the other hand, Royal Bank of Canada Dominion Securities is an investment brokerage firm. Investment banking services are also available.

Corporate level strategies

The audience of the Royal Bank of Canada has a wide range of interests. The Royal Bank of Canada delivers support that is more focused on the customers. The personas of the Royal Bank of Canada are majorly Mainstays, Female Millennials, and younger Gen Z persona. Royal Bank of Canada delivers products and services that have social components to a certain group of people. These people are Aboriginal communities, clients with low socioeconomic conditions, seniors, newcomers, disabled persons, youths and students, women entrepreneurs and others (IIDE 2022a). Royal Bank of Canada supports various initiatives and programs that will provide advantages to underserved groups and communities. An emphasis on the client, accountability, diversity and inclusion, and integrity is the summary of the key values of the company that will guide, unite and inspire the employees of the Royal Bank of Canada to attain a record. The focus of the company is setting the banking fees for the service packages that will permit the company t deliver value to the clients of the company.

Competitive analysis and advantage in the industry

The major competitive advantage of the company is the business mix, focus on client segmentation, marketing and cross-selling, sales, and risk management and information technology.

SWOT analysis

Strengths

The strengths of the Royal Bank of Canada are its extensive network where the bank has more than 83000 employees and deliver a wide range of services and products; it has a wide range of portfolio where if one of the product fails, the company gets to benefit from other products and services; the bank is the best investment bank in Canada (IIDE 2022b). Other strengths of the company are automation of the banking activities that are supported by the well-developed IT structure and infrastructure that will improve the efficiency of the company. Royal Bank of Canada has a strong Digital Marketing Strategy.

Weaknesses

The weaknesses of RCB are environmental criticism by environmental activists for financing oil sand extractions that have negative impacts on the status of the environment and the health of humans. Other weaknesses are poor customer management, the absence of proper monetary planning that is related to cash flow, and poor investment in technology (IIDE 2022b).

Opportunities

Opportunities for the Royal Bank of Canada are new clients from the online channels, moderate growth rate in the businesses, increased expansion of the company to other global markets, advancement in the technologies, and low rate of inflation (IIDE 2022b).

Threats

The threats to the Royal Bank of Canada are the volatile political climate in a variety of industries; lack of skilled staff, increased number of promotional messages of the competitors, cyber security and increasing controversies (IIDE 2022b).

PESTLE analysis

Factors	Descriptions
Political	The geopolitical uncertainties impact the global growth prospects of the company.
Economical	The economic conditions that have impacted the Royal Bank of Canada are deteriorating global economic conditions, fluctuating rates f interest, and fluctuation of the rate of the non-trading foreign exchange.
Social	The social factors are confidence in elderly Canadian women about finances during their retirement (Fern Fort University 2022).
Technological	The company deliver solutions that are digital via advanced technological updates. The company will promote the innovation ecosystem and partnerships.
Legal	The legal factors having impacts on the company are Canadian legislation and Policies that will promote a healthy housing market; committed to protecting the data of the consumers.
Environmental	RBC supports the ideas and partnerships that will solve the challenges of the environment and sustainable finance that represents the opportunities for growth for clients and businesses.

Target Market Analysis of Royal Bank of Canada

Demographic characteristics of the market

The demographic characteristics of the market companies are 62% male and 38% female.

Psychological characteristics of the market

The psychological characteristics of the market of the company are providing support to the builders and customers aged 35 to 50 who are at their peak earning years, delivering support to the accumulators who are aged 50 to 60 and worried about their investment and retirement, providing support to the customers of the age group 60 and over who want to increase the retirement income to maintain a preferred outcome.

Behaviours of the target market

The behaviour segmentation of the target market of the company is assisting the company to focus on the key features. This will help the company is higher satisfaction of customers and a high net promoter score.

Strategies appealing to the market

The influencers put up informational videos regarding the different products of the company and how the products will help people to manage their funds effectively. Different audio-visual messages are delivered to provide financial literacy (IIDE 2022a).

Marketing Mix of Royal Bank of Canada

Product strategy: The product strategy of the company is delivering personal and commercial banking, wealth management, insurance, capital market products, and investor services. The range of financial services that are offered by RBC is saving accounts personal loans, credit cards, mortgages, car loans, investments like bonds, mutual funds and others (IIDE 2022b).

Pricing strategy: They sell insurance at low premiums. Different prices are arranged for various services. The mortgage rate is calculated by the weighting of mortgage balances and adjusting for property values that are based on the Teranet.

Promotional plan: Influencer marketing, mobile app to view the details of accounts

Royal Bank of Canada competitive analysis

4P’s comparison with the competitors: This will assist the Royal Bank of Canada to position itself competitively in the market and achieve its goals and objectives.

Product: In the capital market, the Royal Bank of Canada offers various services to governments and institutional investors in the capital market segment. In wealth management, the provided services are investment, credits and others.

Price: The price of the services of the company is such that it becomes easily accessible to all the people.

Place: There are various bank branches and automated banking machines to improve the status of the company in the competitive market. There are personal and banking services, and online and telephone banking networks. Insurance is sold via proprietary distribution channels. Via online mode, customers get access to their savings balance, credit card, loan and other information (RBC 2022c).

Promotion: Influencer marketing and e-commerce strategies will make the company accessible.

Strength comparison with the competitors: The strengths are the strong reputation of the company, it's spreading across the globe, and its diverse workforce.

Weaknesses’ comparison with the competitors: limited global popularity, volatile financial market, various issues like discrimination issue, oil sand bitumen extraction and others.

Organization’s competitive advantage: Geographical expansion of the company, larger base of customers.