A strategic analysis of FIH Erhvervsbank

Pernille Orthmann

Student thesis: Master thesis


The purpose of this Master’s Thesis is to evaluate the challenges that FIH Erhvervsbank is facing and to find out how FIH’s business model can be improved by dealing with these issues. The challenges are identified to be internal problems, a ownership issue and a general business model setup which does not take the environmental influences into account. The project examines the subject by incurring an extensive evaluation of the links between the business model and the stated strategic challenges by approaching it from an internal, an external and a systemic point of view. The main findings in the internal analysis are that FIH is losing its profit foundation because it is failing in managing the business elements that makes it special. From the external point of view, FIH’s problems are related to the competitive changes which have evolved during the past years and have been accelerated due to the Financial Crisis. The conclusion is that FIH’s niche position in the market is diminishing – it is no longer a unique market player and is therefore, in the range of being weakened by further losses of market shares. Also, the impacts from the surrounding systemic environment – that being both in economical, political and technological terms – are significant because they are determining for how FIH can exist in the market. The solution which is being proposed is that FIH should redefine its business strategy. Basically, it should develop its brand, expand its position in terms of products and markets and last, but not least, it should develop a sustainable funding model based on an expansion of its current e-bank platform. In conclusion, what FIH needs to do is to initiate a new offensive strategy which gives potential for cost advantages and increases its earnings.

EducationsMSc in Finance and Strategic Management, (Graduate Programme) Final Thesis
Publication date2010
Number of pages105