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This week’s analysis explores Freedom Financial using Porter’s Five Forces and Value Chain principles. Join the discussion!
This week we continue analyzing Freedom Financial through the lens of Porter’s Five Forces, while also completing a Value Chain Analysis via these principles. Happy reading and I look forward to your comments, questions, and dialogue. Cheers!
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Hi Zane,
I kind of struggled with this assignment. I think that it was following the model and trying to create my own which was difficult for me. At first, I thought the information was too similar to the information contained in some of the other documents because I was using the same company. It was difficult grasps the exact talking points talking points that I could have utilized until after watching your presentation. The whole assignment makes more sense now, and I was able to see how you devloped all of them from watching the SME interview. Again, great job!
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Tonya,
Thanks for watching! It was indeed a challenging assignment, though that was one of the reasons I chose a hypothetical business, as I want to ensure I am creating this planning from the ground up and not relying on someone else’s assessment of an existing business. That said, both have their advantages and that was simply my goal. I understand your challenges regarding the reuse of information, though I would encourage you to simply think very specifically. If “you” were operating said business, what would you consider the value chain to look like and how do the competitive forces align in your eyes? Transparently, we all tend to think these forces are finite and fixed, but the reality is they may actually be different for different founders based on experience, education, attitudes, etc. I have full confidence you’ve got this and will offer up an awesome presentation!
Cheers,
Zane Breeding
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Zane,
Thank you for sharing your value chain analysis for Freedom Financial. Your presentation was both educational and insightful. I appreciate the breadth of explaining an FMO, as the term is new to me. You’ve explained how Freedom Financial has differentiated itself from the traditional FMO and how to continue boosting differentiation, which I think works to your advantage. Quality, quality, and quality! Great job. You clearly have the experience and background required to move forward with Freedom Financial when you and your wife choose to pursue it.
It will be interesting to see how the increasing government regulations evolve and what the overall long-term effect will be on the financial consulting market. Hopefully, the changes will be advantageous to both business and customer. As you pointed out, low-quality providers will get phased out. Maybe regulations will also prevent them from entering the market. Thanks again for the wonderful presentation.
Kindly,
Shawn
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Shawn,
Thank you for the kind words and you are correct, we are very much a quality venture. Luckily, the financial market has shown a hunger for this type of representation when it comes to marketing support. The industry regulation is the predominant threat to our business model, hands down. Transparently, fixed rate annuity sales have long been pocketed to the side without nearly as much regulation and fee capping as other forms of investment, though that is beginning to come under scrutiny. Should those caps come into play for clients, we will very likely start seeing what you reference, which is the lower quality competition beginning to leave the market and less new competition entering the market. Thus, its very important for us to gain a foothold in the market in advance of any large scale legislation that stands to impact stability.
Cheers,
Zane Breeding
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