Strategic Management Assignment : 20tweny Case Study
Question 1 :
In order to gain competitive advantage in the banking industry, 20twenty applied the following Functional and Business-Level Strategies :
Functional – Level Strategies :
1. Efficiency through great Marketing Strategy :
• Aggressive Pricing Strategy (Flat Fee of R50 per month) attracted 9,720 new customers in 2 weeks, and 40,000 in 6 months - compared to Bluebean.com that signed up 12,000 in a year. Customers perceive banks to be expensive and are thus attracted to low banking fees.
• Differentiated Product (one account vs many traditional accounts) and Services are personalized and service levels are high – attracts customers, as they perceive banks to have low service levels.
• Aggressive Promotional Strategy communicated frequent, short, punchy slogans communicating brand values through all media (Print, Outdoor, TV & Radio,ect) to their target market. Guerrilla marketing efforts conveyed their passion, “converting” consumers.
• Convenient channels means that consumers can now bank 24/7 through the on-line offering or the call center and not have to stand in long queues, limited to bank trading hours.
2. Efficiency through great HR Strategy :
• Hired bright, well-educated, lively and customer oriented individuals that could take initiative on behalf of the customer.
• Individuals were passionate and full converts of the offering.
• Created powerful ideologies and strong company culture that made employees different and special.
3. Efficiency through great IT System :
• On-line offering through efficient web-site
4. Superior Innovation Strategy :
• New, fresh and innovative approach to banking no-one has ever thought of allows leverage over boring, conservative traditional banking.
5. Superior Responsiveness to Customers Strategy :
• Value for money offering – low cost, high service is exactly what...