Jyske Bank was established in 1967 after merging four Danish banks operating in Jutland. Jyske Bank had been considered as a typical Danish bank, which is prudent, conservative, well managed and undifferentiated till the late 1990s. However, with the new strategy, the bank developed to guide differentiation from the mid of 1990s among great amount of Danish banking customer satisfaction.
Q1. What is Jyske Bank’s new positioning or competitive differentiation strategy?
Base on the case, Jyske Bank’s new positioning strategy is strongly believed to be developed from its core values and Jyske Differences by the managers. In order to achieve Jyske Differences, which comes from Jyske Bank’s core values, the bank’s managers just became overt about values they had long held. The core values allow managers to reevaluate how the bank operate and service its consumers. Therefore, managers decided to have some specific practices that deliver service differently from both how it had in the past, and how other banks delivered service. In other words, they would have to change their conservative position of the past and become a service driven and customer innovative bank within the competitive banking sector. With the assistant of Dutch consultant that the research findings showed the target market consisting mainly of Dutch families (60% retail) and small Danish businesses (40% commercial), were favorable towards the idea of bank that had a persona and believed in what it stood for. Additional research was also conducted in more difficult areas concerning the banks 4P's- Product, Place, Price and Promotion from a customer orientated standpoint. In contrast, soft factors such as customer relationships with the bank, served as the bank's differentiation. From Exhibit 1, which indicates that Danish Banks were in intensive competition, Jyske Bank’s managers should reestablish its competitive position, it went through a major transformation and positioned itself as a highly customer-focused bank, eager to foster relationships with customers, understand their needs and sell solutions accordingly. Jyske Bank’s new positioning is only targeted less risky customers who could afford its premium pricing and were comfortable with the banks candid personality and portrayed image. Although after that the bank is only about 6% of the market, but that is what call personality, some people should dislike them. Jyske Bank’s competitive differentiation strategy was born out of its ‘values and differences’ discussed in the case Exhibit 4, which emphasized equality, transparency, honesty, respect and efficiency. The aim was to have these values embedded in each of the external customer-facing and internal aspects of its business and operations and distinguish itself from competition. Jyske Bank differentiated itself on the service delivery aspect and invested in tools that would improve its employee’s ability to deliver solutions and increase the time spent with its customers. Thus, the competitive differentiation strategies mainly contain a shift from traditional product focused selling to a customer- solution approach and the way the bank’s core financial product to deliver so as to give customers a different banking experience.
Q2. What changes did the bank make to gat to its new position? What effect did these changes have?
In order to successfully implement its new customer- focused strategy, Jyske bank had to make both tangible and intangible changes in their business operations, as well as how they delivered service to its customers, where necessary not only to influence the outcome of the business but also to provide guaranteed customer satisfaction. These changes were made to reflect Jyske Differences in every possible way. The tangible changes they made were changes to the account teams, branch design, and details. To be more specifically, account teams were created to work together and provide personalized service to each customer...
Please join StudyMode to read the full document