Noreaster Maximizing Revenue
According the Kettle and Keller (201 2), this analysis will help to identify areas that affect a company's ability to earn profits. BOA is the leading financial service provider in twenty-three major cities. They are also the number one in online & mobile banking and mortgage services. They strengths lies within building a strong brand, multiple financial service offerings, engaging customers, and customer service. However, their weakness became prevalent when the decision was to made to only offer mobile banking to customers who already had an online banking account.
This left an untapped market exposed to competition and BOA risked losing customers and reducing their market share. BOA also ignored a large mobile market of non smart phone users who would use the SMS-technology for mobile banking. This left 85% of potential mobile phone customers available to be snatched by competition, such as Comparing Chase ; who decided to roll- out their mobile banking with mobile messaging. Identifying the external opportunities and threats are also important for a company to remain competitive.
Kettle and Keller (2012) define marketing opportunity as an area of buyer need an interest that a company determines to be profitable. BOA decision to enter into the mobile banking industry was critical to their long-term success. In the case study, several forecasts were reported to show the future projections of mobile phone users and mobile banking transactions to grow 600% by 2014. Additional opportunities to service their mobile banking customers is available as customer needs and technology changes. The main threat that BOA faces is their competition.
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There are ten banks that support almost 50% of the U. S. Market. While BOA is the currently the largest, their competition still exists and offers similar services. Another threat that exists is the customers apprehension to use online or mobile banking. The case study states that 1% of BOA customers used online banking. Customers states that they didn't see the value in online-banking concerns about security, and cost of data usage through cell- phone providers. BOA should focus on addressing these concerns in order to build their mobile banking customers.
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