Analysis Of Differentiation Strategy Adopted By GT Bank PLC
3.1.1 Differentiation Strategy Adopted by GT Bank PLC
Differentiation is also associated with the concept of innovation that ensures the exploitation of products/services. According to this strategy, an organisation must believe to be unique for customers, which often fascinates them due to the availability of distinctive products/services (Hedlund, 2004). GT Bank PLC is one the famous banks that has adopted differentiation strategy, as it is offering unique products/services to the price-insensitive customers. It has been mentioned previously that e-BRANCH, DRIVE THROUGH BANKING, and ON WHEELS are some differentiated strategies of the respected organisation that are being perceived by the customers. Furthermore, the value added by these services has enabled the bank to charge premium prices.
With the help of value adding of a range of products/services, this strategy becomes an accelerator to promote higher profits, as customers are willing to pay premium prices. Therefore, the concerned bank is recouping the extra costs to produce and deliver services from the premium prices (Fadun, 2014). Conversely, it is also a common perspective that if this bank recoups extra costs from the premium prices then …show more content…
In other words, it can be said that this is an agent service offered by the bank through agent locations, such as Supermarkets, Cinemas, Markets, and other institutions. This selected service can be an influential initiative to reach to the population needed for banking financial services domestically and internationally. In this regard, the use of non-banking retail outlets has great significance, as these locations provide Account Opening services, Cash deposit, and Withdrawal via ATMs, Bills payment, Funds transfer services, and several other activities recommended by the Central Bank of Nigeria (referred in appendix
Differentiation is also associated with the concept of innovation that ensures the exploitation of products/services. According to this strategy, an organisation must believe to be unique for customers, which often fascinates them due to the availability of distinctive products/services (Hedlund, 2004). GT Bank PLC is one the famous banks that has adopted differentiation strategy, as it is offering unique products/services to the price-insensitive customers. It has been mentioned previously that e-BRANCH, DRIVE THROUGH BANKING, and ON WHEELS are some differentiated strategies of the respected organisation that are being perceived by the customers. Furthermore, the value added by these services has enabled the bank to charge premium prices.
With the help of value adding of a range of products/services, this strategy becomes an accelerator to promote higher profits, as customers are willing to pay premium prices. Therefore, the concerned bank is recouping the extra costs to produce and deliver services from the premium prices (Fadun, 2014). Conversely, it is also a common perspective that if this bank recoups extra costs from the premium prices then …show more content…
In other words, it can be said that this is an agent service offered by the bank through agent locations, such as Supermarkets, Cinemas, Markets, and other institutions. This selected service can be an influential initiative to reach to the population needed for banking financial services domestically and internationally. In this regard, the use of non-banking retail outlets has great significance, as these locations provide Account Opening services, Cash deposit, and Withdrawal via ATMs, Bills payment, Funds transfer services, and several other activities recommended by the Central Bank of Nigeria (referred in appendix