Summary: A Small-Fin Bank planning to launch savings and loan accounts in a suburban territory faces competition and aims to achieve market dominance. Key strategies include avoiding unethical practices like negative PR and focusing on positive, sustainable approaches. Offering competitive financial products, such as refinancing, flexible mortgages, and superior repayment methods, can attract customers. Establishing strong local networks for employability and delivering excellent customer service ensures loyalty and facilitates cross-selling. Collaborating with weaker competitors for mutual benefits or leveraging their strengths can create long-term sustainability while exerting market pressure. If the client resists altering its operational structure, market penetration and growth may take longer, necessitating a tailored approach combining the outlined strategies. These should be adjusted to local conditions, customer needs, and the bank’s vision, ensuring a balanced, ethical approach to expansion and profitability.
Case Problem
Let us say our client is Small-Fin Bank and wants to open up the Saving and Loan Accounts in that Sub-Urban Territory and in general wants to create a Monopoly and the Average Ticket Size for the profitability in net.
It is also given that this area has a few more competitors at very competitive offerings.
Opinion
1. The first and the foremost feasible solution is to create a negative PR View for the competitor. But it should come at last to explore more positive strategies to be operative (for better culture) and ethics.
2. Various financial rewarding methodologies such as Refinancing, lucrative rates, mortgage-flexibility, repayment methods, excellence of services of business, local network for employability may be a core and a few to have.
3. Excellent after services and reselling and cross selling of products due to the great/good customer delighting services for loyal and previous customer/clients.
4. Partnering with the poor-competitor brands (if allows) for rendering the services in their area of excellence to become sustainable for a long time and create a monopoly in the territory and may sometimes create a pressurize effect on a comparable –less competitor to agree for collaborations by a strong-peer.
If the company (which is our client) doesn’t wish to modulate or modify its structure-operandi, the expansion process may take comparatively a longer time to adjust and discount the gap which it supposed to achieved earlier if permitted to perform so.
In most of the time, client is not supposed to modify a major chunk of its business ethics and vision, so /therefore accordingly the above pointers may vary and modulate as per given conditions for that territory and clients both and a perfect mix of above pointers inappropriate/required proportion should perform.
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Disclaimer : The above stated Case Problem and Opinion are subject to personal views and approach from a Layman’s point of view and may not stands pragmatic in real world scenario and thus may differ from person to person in their way of solving it. Enjoy the joy of writing and a stimuli of brain to it.
Happy Reading.
Thanks and Regards
Deepak Sharma
BSc. Physical Sciences (DU), MA Economics (IGNOU), PGC Strategy (IIMB)
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