Cash Connection: Are Its Payday

CASE 8

Lender Strategy and Its Business

Model Ethical?

Assignment Questions
1. What is Cash Connections strategy? Which of the five generic competitive strategies discussed in Chapter
5 most closely fits the competitive approach that Cash Connection is taking?

2. What evidence suggests that Cash Connections strategy and business model are ethical and beneficial to
customers and to society at large? What evidence suggests the companys strategy and business model
are neither ethical nor beneficial to customers and that the entire payday lending industry has few if any
redeeming qualities?

3. What are the dominant economic characteristics affecting the payday lending industry?

4. What are the strength ratings on each force that makes up Porters Five Forces Model? What do these
strength ratings reveal about the overall attractiveness of the payday lending industry?

5. What are the Driving Forces that are currently affecting the payday lending industry?

6. What are the prevalent Key Success Factors that most affect industry members ability to prosper in the
marketplace?