Mountain Bank-Discussion Case

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Mountain Bank Case 1. Even though Mountain Bank has four major business lines, which are retail banking, consumer lending, real estate and mortgage banking and corporate banking, the bank has the strong presence in the retail banking line. However the retail banking line is not as profitable as corporate banking and also the retail banking is not stable as a form of income like real estate and mortgage banking. In order to develop a strong presence both in real estate and mortgage banking and corporate banking lines, which are the most profitable lines among all the lines, Mountain Bank should implement the differentiation strategy and cost leadership strategy. In the view of implementing differentiation strategy, the bank should focus on creating products or services that are perceived as unique. In this case, Mountain Bank should concentrate on product or service developments that the customers value rather than preserving the lowest price and make them unique that would be seen as different from all the other banks. From this perspective, a stable exceptional customer service which has lower turnover rates at employee level would be an option to follow this strategy. Also training of employees at teller positions would create better relationships with customers and let the employees to behave more flexible to guide the customers in the current line or even to offer new products or services. In the view of implementing cost leadership strategy, Mountain Bank should develop a pricing method with lower prices comparing to its competitors in order expand its lines to real estate and mortgage banking and corporate banking lines. By the way of decreasing the costs of the products or services to a level no other banks would compete with, in the mentioned two lines, it will attract more customers and this strategy will allow Mountain Bank to obtain a

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