Business Analysis of Western Union

 Analyze Historical Performance, Strategic Priorities, And Business Improvement Opportunities of Western Union

WESTERN UNION

Business Overview

The Western Union Company provides money movement and payment services worldwide. The company operates in three segments: Consumer-to-Consumer, Consumer-to-Business, and Business Solutions. The Consumer-to-Consumer segment facilitates money transfers between two consumers, primarily through a network of third-party agents. This segment offers international cross-border transfers and intra-country transfers, as well as money transfer transactions through Websites and mobile devices. The Consumer-to-Business segment facilitates bill payments from consumers to businesses and other organizations, including utilities, auto finance companies, mortgage servicers, financial service providers, and government agencies. The Business Solutions segment provides payment and foreign exchange solutions, primarily cross-border and cross-currency transactions for small and medium size enterprises, other organizations, and individuals. The company serves primarily through a network of agents. The Western Union Company was incorporated in 2006 and is headquartered in Englewood, Colorado.

Western Union

Western Union


R&P Rank: 482
Sector: Retail
Industry:Specialized Consumer Services
H.Q Location:Colorado
Website: www.westernunion.com
Company Address:
12500 EAST BELFORD AVENUE, ENGLEWOOD CO 80112
Ph:720-332-3361

Business Analysis of Western Union

The Retail Sector is witnessing a major shakeup, new age business models in the industry are transforming both customers and businesses. Faced with this uncertainity, companies are investing resources to transform their business. An in-depth business analysis is a valuable resource to identify and articulate the need for a business model change. At R&P Research we believe, the starting point for a business analysis is Benchmarking. Business benchmarking can be done at various levels: 1) Industry Benchmarking 2) Peer Benchmarking 3) Disruptors Benchmarking. In this report, we share the snapshot of how Western Union compares against the industry on the major performance indicators. This analysis, along with peer group/disruptors benchmarking and revenue model understanding can help identify growth and cost optimization opportunities to maximize the value delivered by Western Union to its stakeholders. R&P Research Industry Intelligence Platform provides historical data for last 15 years with an easy to use benchmarking interface for an in-depth comparative business analysis.

Here is the performance snapshot of Western Union with an interactive chart.

  1. Revenue Growth: Western Union reported a revenue growth of -1.1% year-on-year during 2016. Specialized Consumer Services Industry grew at 9.7% in the same period
  2. COGS share of Revenues: As a percentage of revenue, Western Union spent 60.3% of its total revenues on COGS. Specialized Consumer Services industry average (COGS share of revenue) in the same period was 57.3%
  3. R&D share of Revenues: Western Union R&D share of Revenues details are not available because either company does not share the data or we do not have it
  4. SG&A share of Revenues: As a percentage of revenue, Western Union spent 30.8% of its total revenues on Sales, Marketing, and General Administration (SG&A). Specialized Consumer Services industry average SG&A spending in the same period was 22.9%
  5. Inventory share of Revenues: Western Union Inventory share of Revenues details are not available because either company does not share the data or we do not have it
  6. Accounts Payable share of Revenues: As a percentage of revenue, Western Union invested 90.0% of its total revenues on Accounts Payable (A/P) Specialized Consumer Services industry average Accounts Payable investment in the same period was 17.3%
  7. Accounts Receivable share of Revenues: As a percentage of revenue, Western Union invested 69.1% of its total revenues on Accounts Receivable (A/R). Specialized Consumer Services industry average Accounts Receivable investment in the same period was 26.5%
  8. PP&E share of Revenues: As a percentage of revenue, Western Union invested 4.1% of its total revenues on Property, Plants, and Equipments (PP&E). Specialized Consumer Services industry average PPE investment in the same period was 25.5%
  9. Intangibles share of Revenues: As a percentage of revenue, Western Union invested 70.6% of its total revenues on Intangibles. Specialized Consumer Services industry average Intangibles investment in the same period was 58.2%
  10. Net Margins: Western Union Net Margins in the year 2016 were 4.7%. Specialized Consumer Services industry average Net Margins in the same period were 7.0%

Sector and Industry Association of Western Union

For the purpose of performance benchmarking of a company with a sector or industry average, R&P Research associates every company with one sector and one industry. An industry consists of companies with related/similar business models. A sector comprises of a group of related/similar industries.

Western Union is associated with Retail Sector and Specialized Consumer Services Industry.

Retail sector is comprised of the following industries: Broadline Retail; Grocery Retail; Specialty Retail; Apparel Retail; Home Improvement Retail; Specialized Consumer Services. The definitions for each of the industries is as follows:

  • Broadline Retail industry includes retail outlets and wholesalers offering a wide variety of products including both hard goods and soft goods.
  • Grocery Retail industry includes retail stores that primarily offer non-perishable food that is packaged in cans, bottles and boxes, with some also having fresh produce, butchers, delis, and bakeries
  • Specialty Retail industry includes retailers and wholesalers concentrating on a Single Class of Goods, such as electronics, books, automotive parts or closeouts. It also includes automobile dealerships, video rental stores, dollar stores, duty-free shops and automotive fuel stations not owned by oil companies.
  • Apparel Retail industry consists of retailers and wholesalers specializing mainly in Clothing, Shoes, Jewelry, Sunglasses and Other accessories.
  • Home Improvement Retail industry includes retailers and wholesalers concentrating on the sale of home improvement products, including Garden Equipment, Carpets, Wallpaper, Paint, Home Furniture, Blinds and Curtains, and Building materials.
  • Specialized Consumer Services industry includes providers of consumer services such as Auction Houses, Day-care Centers, Dry Cleaners, Schools, Consumer Rental Companies, Veterinary Clinics, Hair Salons and providers of Funeral, Lawn-maintenance, Consumer-storage, Heating and Cooling installation and Plumbing services.

Industry Ranking of Western Union

With $5.4 billion revenues, Western Union ranked number 2 of all the companies in the US Specialized Consumer Services industry. There were a total of 32 public companies in the US Specialized Consumer Services industry that had revenues greater than $50 million during 2016.

The top-10 companies in the US Specialized Consumer Services industry by revenues during 2016 were:

  1. Olin ($5.6 billion)
  2. Western Union ($5.4 billion)
  3. Sally Beauty Holdings ($4 billion)
  4. Ulta Beauty ($3.9 billion)
  5. KAR Auction Services ($3.2 billion)
  6. H&R Block ($3 billion)
  7. Service Corporation International ($3 billion)
  8. ServiceMaster Global Holdings ($2.7 billion)
  9. Toro ($2.4 billion)
  10. Vista Outdoor ($2.3 billion)

Business Model Analysis (BMA) Framework

We use the following framework to assess the business model of a company. Business Model Analysis framework can be used by organizations to articulate growth strategies and identify cost optimization opportunities. Technology and consulting companies can use this framework to identify the value drivers and pain points of their targeted customers. Entrepreneurs can use this framework to understand the language of business and identify promising business opportunities. This framework can be used by any professional aspiring to take up a leadership role to better understand the businesses challenges, articulate growth strategy, and monitor the business improvement requirements for the organization.

Next Steps

  • Conduct a holistic benchmarking; to identify and target additional sources of value
  • Get in touch with us to learn more about Business Model Analysis Framework
  • Get free data, charts, and analysis of Western Unionand its peers on select key performance indicators by clicking the reports provided below

Industry Peers and Competitors of western-union

Olin (OLN) Business Analysis – Analyze Historical Performance, Strategic Priorities, And...

Olin Corp with $6 billion revenues in the year 2016 was the number 1 Specialized Consumer Services company. Read this report to know the top competitors of Olin and identify growth and cost optimization opportunities of Olin

Sally Beauty Holdings (SBH) Business Analysis – Analyze Historical Performance, Strategic...

Sally Beauty Holdings, Inc. with $4 billion revenues in the year 2016 was the number 3 Specialized Consumer Services company. Read this report to know the top competitors of Sally Beauty Holdings and identify growth and cost optimization opportunities of Sally Beauty Holdings

Ulta Beauty (ULTA) Business Analysis – Analyze Historical Performance, Strategic Priorities,...

Ulta Salon, Cosmetics & Fragrance, Inc. with $4 billion revenues in the year 2016 was the number 4 Specialized Consumer Services company. Read this report to know the top competitors of Ulta Beauty and identify growth and cost optimization opportunities of Ulta Beauty

KAR Auction Services (KAR) Business Analysis – Analyze Historical Performance, Strategic...

KAR Auction Services, Inc. with $3 billion revenues in the year 2016 was the number 5 Specialized Consumer Services company. Read this report to know the top competitors of KAR Auction Services and identify growth and cost optimization opportunities of KAR Auction Services

H&R Block (HRB) Business Analysis – Analyze Historical Performance, Strategic Priorities,...

H&R Block Inc with $3 billion revenues in the year 2016 was the number 6 Specialized Consumer Services company. Read this report to know the top competitors of H&R Block and identify growth and cost optimization opportunities of H&R Block

Service Corporation International (SCI) Business Analysis – Analyze Historical Performance, Strategic...

Service Corporation International with $3 billion revenues in the year 2016 was the number 7 Specialized Consumer Services company. Read this report to know the top competitors of Service Corporation International and identify growth and cost optimization opportunities of Service Corporation International

Revenues Analysis

Western Union (WU) Revenues And Revenue Growth From 2012 To 2016

This report provides the last five years revenues and revenue growth of Western Union Co (WU) from 2012 to 2016. Western Union generated a total of $5.4 billion revenues during 2016. Western Union reported a revenue growth of -1.1% year-over-year during 2016. The revenues and the revenue growth correspond to the fiscal year ending in December.

Western Union (WU) Revenues And Revenue Growth From 2003 To 2016

This report provides the last fourteen years revenues and revenue growth of Western Union Co (WU) from 2003 to 2016. Western Union generated a total of $5.4 billion revenues during 2016. Western Union reported a revenue growth of -1.1% year-over-year during 2016. The revenues and the revenue growth correspond to the fiscal year ending in December.

Western Union (WU) Revenue Growth Comparison With Industry Growth From 2012...

This report provides a comparison of Western Union Co (WU) revenue growth with Specialized Consumer Services industry growth during the last five years from 2012 to 2016. Western Union reported a revenue growth of -1.1% year-over-year during 2016. The Specialized Consumer Services industry growth was 9.7% year-over-year during 2016. Western Union growth was slower than the industry during 2016.

Profit Analysis