The strategy of Cash connection lies in characterizing oneself apart from the other competitors for gaining major lending industry share, while it also engaging to meet the needs of the customers and following guidance from government as well as following their supervision. Broad differentiation strategy is the strategy out of the five generic strategies of competition that fits most closely to the Cash connection competitive approach. The company has looked at creation of a competitive benefit through attributes incorporation as well as features which buyers regard as highly valuable in nature. Differentiation of successful nature has allowed the company to enhance its sales as well as enhance its awareness of brand in all terms. The payday lending industry competitiveness as per the strength ratings is quiet strong. The strength rating reveal a strong competitiveness being existing. The competitive forces order from strong to the one that is the weakest within the model of Porter’s five forces is inclusive of potential entrants, substitutes, rivalry in the industry, buyers and then suppliers. From the perspective of this case study, it is believed that new entrants potentially help in liquidation of the market of pay day which influences the demand for driving down within stores. The barrier entries are lower at an extreme level for those as start-up businesses. This is followed through substitution such as Providence being offered over credit cards.
These are the ones that can be marketed towards customers of unbanked nature. Individual locations for pay day are also influences through current rivalry within the industry. There are several driving forces affecting the industry of pay day lending. The economic features are the GDP contribution to a nation inclusive of labor income, employment as well as generated revenues of tax. The industry of payday lending is also characterized by these features. It is affected through the economic standing of the customers and their stability in terms of finances as this in turn reflects over the possibility of lending to be allocated. The industry is also affected by short term economics as the price rates for rollovers have a tendency of increasing with renewal of transactions. Potential of new entrants is the strongest of the competitive force affecting the industry. This driver in turn helps in liquidating the market which can lead towards lowering individual stores demand. In brief, the driving forces include increased bounded checks cost and over-drafting the fees for protection, the increased late bill penalties of payment and cost along with traditional finance institution exiting from smaller denominations and smaller market credit.