Analysis of the development strategy of Société Générale in Europe

Type :

Case study

Pages :

8 pages

Format :

.doc

Published date :

08/21/2006

Category :

Business & market

Sub category :

Business strategy

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Summary :

The European banking market.
The development strategy of société générale in Europe.
1. In detail banking, the central and eastern European choice.
2. Czech Republic: Komercni Banca (bought in 2001).
3. Slovenia.
4. Romania.
5. Bulgaria :SG Expressbank (1999).
6. Greece: general bank of Greece (bought in 2004).
7. Serbia and Montenegro:SG Yugoslav bank.
8. Croatia.
9. Russia :SG Vostok (2003).
In Western Europe, societe generale focus on specialized financial services
1. Household financial services.
Conclusion
References

Abstract

Achieving an integrated market for banks and financial conglomerates is a core component of the European policy in the area of financial services. Even if the banking market seems to remains mainly national, the free movement of capital, the adoption of the euro and the progressive harmonization of rules impel banks to achieve a critical size not only in their domestic market but also at the European level. If this expected movement of consolidation was actually limited until 2003, the realization of major M&As since 2004, permitted by europe's economic recovery, tends to prove that consolidation has now really begun. While some banks like BNP-Paribas decided to take up the challenge of achieving a European critical size, société générale still prefers standing alone, developing a strong organic growth and making only very targeted acquisitions. After having analyzed the banking consolidation in europe, we will focus on the development strategy of société générale and in particular on the difference between its detail banking and financial services international strategies. Finally, we will conclude about the risk of société générale's "standing alone" strategy in the long run.