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Deregulation and the Pied Piper approach to diversification
Author(s) -
Boyle E.
Publication year - 1997
Publication title -
strategic change
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.527
H-Index - 16
eISSN - 1099-1697
pISSN - 1086-1718
DOI - 10.1002/(sici)1099-1697(199703)6:2<63::aid-jsc283>3.0.co;2-r
Subject(s) - deregulation , boom , diversification (marketing strategy) , real estate , financial services , finance , estate , business , financial system , rivalry , economics , agency (philosophy) , market economy , economy , engineering , macroeconomics , philosophy , epistemology , marketing , environmental engineering
Deregulation of the financial services sector over the past quarter of a century has caused radical change in both the structure of the industry and the strategies of its institutions. Between 1980 and 1986 the deregulation of the mortgage market intensified the competitive rivalry between different types of financial institutions. In response to this Lloyds Bank took the lead and diversified into estate agency in 1982. Between then and now, many other financial institutions, particularly insurance companies and building societies followed Lloyds example. In the 1980s this diversification was further encouraged by the boom in the housing market. In 1989 the boom collapsed. Some financial institutions—the Prudential Insurance Co., Abbey National and the Nationwide Building Society pulled out of estate agency altogether. Others reduced the size of the operations. Despite this in 1993 90 per cent of the UK estate agents were still in the hands of financial institutions. © 1997 John Wiley & Sons, Ltd.