Step Three - Specific Focus - Students evaluate specific IT based strategies, e.g.
Automated Teller Machines and Electronic Banking.
An excellent example of the use of a competitive force strategy by XYZ Bank, well
known for their innovative services, was their pioneering introduction of ATM cards.
This innovative service granted them significant competitive advantage for years as this
free and unique service helped retain and expand their customer-base. Eventually, this
competitive advantage began declining as their competitors also launched ATM card
services, and especially when XYZ Bank initiated a monthly fee for the use of ATM
cards. Interestingly, many customers continue to bank with XYZ despite the additional
charge. XYZ Bank continuously launches innovative services; however, competitors
very quickly counteract with similar services limiting any potential competitive
advantage.
Recently, XYZ Bank introduced yet another pioneering service; namely, ElectronicBanking
(EB) which allows customers to perform many common transactions from the
comfort of their home personal computer. The EB service requires the use of a modem,
which is common in most home personal computers. XYZ Bank provides the required
EB software free of charge and the number the modem calls is a toll-free (800) number.
The software is easy to install and user friendly. The main effort on behalf of the user is
the initial setting up of the different payee accounts; afterwards, handling transactions
with EB is so trivial that customers may hardly visit the bank again.
Step Three - Specific Focus - Students evaluate specific IT based strategies, e.g.Automated Teller Machines and Electronic Banking. An excellent example of the use of a competitive force strategy by XYZ Bank, wellknown for their innovative services, was their pioneering introduction of ATM cards.This innovative service granted them significant competitive advantage for years as thisfree and unique service helped retain and expand their customer-base. Eventually, thiscompetitive advantage began declining as their competitors also launched ATM cardservices, and especially when XYZ Bank initiated a monthly fee for the use of ATMcards. Interestingly, many customers continue to bank with XYZ despite the additionalcharge. XYZ Bank continuously launches innovative services; however, competitorsvery quickly counteract with similar services limiting any potential competitiveadvantage. Recently, XYZ Bank introduced yet another pioneering service; namely, ElectronicBanking(EB) which allows customers to perform many common transactions from thecomfort of their home personal computer. The EB service requires the use of a modem, which is common in most home personal computers. XYZ Bank provides the requiredEB software free of charge and the number the modem calls is a toll-free (800) number.The software is easy to install and user friendly. The main effort on behalf of the user isthe initial setting up of the different payee accounts; afterwards, handling transactionswith EB is so trivial that customers may hardly visit the bank again.
การแปล กรุณารอสักครู่..