Internet Customer Acquisition Strategy at Bankinter, Spanish Version SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Finance & Accounting
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Internet Customer Acquisition Strategy at Bankinter, Spanish Version
Bankinter, a relatively small Spanish bank, has a large presence as an Internet financial services provider. Leading the way to profitability through the Internet will give Bankinter a major competitive advantage over the larger, more established Spanish banks. Ann Peralta, director of the Internet network in Bankinter, must evaluate whether the thousands of new customers pouring in from other portals are profitable for the bank. Peralta uses tools such as customer relationship management, activity-based costing, customer profitability, and lifetime value computations to determine the value of this cohort of new customers for the bank and in doing so, can decide on future customer acquisition strategies.
Authors :: F. Asis Martinez-Jerez, V.G. Narayanan, Lisa Brem
Swot Analysis of "Internet Customer Acquisition Strategy at Bankinter, Spanish Version" written by F. Asis Martinez-Jerez, V.G. Narayanan, Lisa Brem includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Bankinter Peralta facing as an external strategic factors. Some of the topics covered in Internet Customer Acquisition Strategy at Bankinter, Spanish Version case study are - Strategic Management Strategies, Competitive strategy, Costs, Internet, Performance measurement and Finance & Accounting.
Some of the macro environment factors that can be used to understand the Internet Customer Acquisition Strategy at Bankinter, Spanish Version casestudy better are - – increasing inequality as vast percentage of new income is going to the top 1%, central banks are concerned over increasing inflation, challanges to central banks by blockchain based private currencies, geopolitical disruptions, banking and financial system is disrupted by Bitcoin and other crypto currencies, supply chains are disrupted by pandemic , increasing government debt because of Covid-19 spendings,
cloud computing is disrupting traditional business models, digital marketing is dominated by two big players Facebook and Google, etc
Introduction to SWOT Analysis of Internet Customer Acquisition Strategy at Bankinter, Spanish Version
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Internet Customer Acquisition Strategy at Bankinter, Spanish Version case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Bankinter Peralta, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Bankinter Peralta operates in.
According to Harvard Business Review, 75% of the managers use SWOT analysis for various purposes such as – evaluating current scenario, strategic planning, new venture feasibility, personal growth goals, new market entry, Go To market strategies, portfolio management and strategic trade-off assessment, organizational restructuring, etc.
SWOT Objectives / Importance of SWOT Analysis and SWOT Matrix
SWOT analysis of Internet Customer Acquisition Strategy at Bankinter, Spanish Version can be done for the following purposes –
1. Strategic planning using facts provided in Internet Customer Acquisition Strategy at Bankinter, Spanish Version case study
2. Improving business portfolio management of Bankinter Peralta
3. Assessing feasibility of the new initiative in Finance & Accounting field.
4. Making a Finance & Accounting topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Bankinter Peralta
Strengths Internet Customer Acquisition Strategy at Bankinter, Spanish Version | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Bankinter Peralta in Internet Customer Acquisition Strategy at Bankinter, Spanish Version Harvard Business Review case study are -
Organizational Resilience of Bankinter Peralta
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Bankinter Peralta does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Strong track record of project management
– Bankinter Peralta is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Effective Research and Development (R&D)
– Bankinter Peralta has innovation driven culture where significant part of the revenues are spent on the research and development activities. This has resulted in, as mentioned in case study Internet Customer Acquisition Strategy at Bankinter, Spanish Version - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Analytics focus
– Bankinter Peralta is putting a lot of focus on utilizing the power of analytics in business decision making. This has put it among the leading players in the industry. The technology infrastructure suggested by F. Asis Martinez-Jerez, V.G. Narayanan, Lisa Brem can also help it to harness the power of analytics for – marketing optimization, demand forecasting, customer relationship management, inventory management, information sharing across the value chain etc.
Superior customer experience
– The customer experience strategy of Bankinter Peralta in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Ability to lead change in Finance & Accounting field
– Bankinter Peralta is one of the leading players in its industry. Over the years it has not only transformed the business landscape in its segment but also across the whole industry. The ability to lead change has enabled Bankinter Peralta in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Digital Transformation in Finance & Accounting segment
- digital transformation varies from industry to industry. For Bankinter Peralta digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Bankinter Peralta has successfully integrated the four key components of digital transformation – digital integration in processes, digital integration in marketing and customer relationship management, digital integration into the value chain, and using technology to explore new products and market opportunities.
Sustainable margins compare to other players in Finance & Accounting industry
– Internet Customer Acquisition Strategy at Bankinter, Spanish Version firm has clearly differentiated products in the market place. This has enabled Bankinter Peralta to fetch slight price premium compare to the competitors in the Finance & Accounting industry. The sustainable margins have also helped Bankinter Peralta to invest into research and development (R&D) and innovation.
Training and development
– Bankinter Peralta has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Internet Customer Acquisition Strategy at Bankinter, Spanish Version Harvard Business Review case study by analyzing – employees retention, in-house promotion, loyalty, new venture initiation, lack of conflict, and high level of both employees and customer engagement.
Learning organization
- Bankinter Peralta is a learning organization. It has inculcated three key characters of learning organization in its processes and operations – exploration, creativity, and expansiveness. The work place at Bankinter Peralta is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Internet Customer Acquisition Strategy at Bankinter, Spanish Version Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Low bargaining power of suppliers
– Suppliers of Bankinter Peralta in the sector have low bargaining power. Internet Customer Acquisition Strategy at Bankinter, Spanish Version has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Bankinter Peralta to manage not only supply disruptions but also source products at highly competitive prices.
Ability to recruit top talent
– Bankinter Peralta is one of the leading recruiters in the industry. Managers in the Internet Customer Acquisition Strategy at Bankinter, Spanish Version are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Weaknesses Internet Customer Acquisition Strategy at Bankinter, Spanish Version | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Internet Customer Acquisition Strategy at Bankinter, Spanish Version are -
Capital Spending Reduction
– Even during the low interest decade, Bankinter Peralta has not been able to do capital spending to the tune of the competition. This has resulted into fewer innovations and company facing stiff competition from both existing competitors and new entrants who are disrupting the industry using digital technology.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Internet Customer Acquisition Strategy at Bankinter, Spanish Version, in the dynamic environment Bankinter Peralta has struggled to respond to the nimble upstart competition. Bankinter Peralta has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Internet Customer Acquisition Strategy at Bankinter, Spanish Version HBR case study still accounts for major business revenue. This dependence on star products in has resulted into insufficient focus on developing new products, even though Bankinter Peralta has relatively successful track record of launching new products.
Increasing silos among functional specialists
– The organizational structure of Bankinter Peralta is dominated by functional specialists. It is not different from other players in the Finance & Accounting segment. Bankinter Peralta needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Bankinter Peralta to focus more on services rather than just following the product oriented approach.
Need for greater diversity
– Bankinter Peralta has taken concrete steps on diversity, equity, and inclusion. But the efforts so far has resulted in limited success. It needs to expand the recruitment and selection process to hire more people from the minorities and underprivileged background.
Skills based hiring
– The stress on hiring functional specialists at Bankinter Peralta has created an environment where the organization is dominated by functional specialists rather than management generalist. This has resulted into product oriented approach rather than marketing oriented approach or consumers oriented approach.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Bankinter Peralta is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Internet Customer Acquisition Strategy at Bankinter, Spanish Version can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Low market penetration in new markets
– Outside its home market of Bankinter Peralta, firm in the HBR case study Internet Customer Acquisition Strategy at Bankinter, Spanish Version needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
High dependence on existing supply chain
– The disruption in the global supply chains because of the Covid-19 pandemic and blockage of the Suez Canal illustrated the fragile nature of Bankinter Peralta supply chain. Even after few cautionary changes mentioned in the HBR case study - Internet Customer Acquisition Strategy at Bankinter, Spanish Version, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Bankinter Peralta vulnerable to further global disruptions in South East Asia.
Interest costs
– Compare to the competition, Bankinter Peralta has borrowed money from the capital market at higher rates. It needs to restructure the interest payment and costs so that it can compete better and improve profitability.
Products dominated business model
– Even though Bankinter Peralta has some of the most successful products in the industry, this business model has made each new product launch extremely critical for continuous financial growth of the organization. firm in the HBR case study - Internet Customer Acquisition Strategy at Bankinter, Spanish Version should strive to include more intangible value offerings along with its core products and services.
Opportunities Internet Customer Acquisition Strategy at Bankinter, Spanish Version | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities highlighted in the Harvard Business Review case study Internet Customer Acquisition Strategy at Bankinter, Spanish Version are -
Leveraging digital technologies
– Bankinter Peralta can leverage digital technologies such as artificial intelligence and machine learning to automate the production process, customer analytics to get better insights into consumer behavior, realtime digital dashboards to get better sales tracking, logistics and transportation, product tracking, etc.
Learning at scale
– Online learning technologies has now opened space for Bankinter Peralta to conduct training and development for its employees across the world. This will result in not only reducing the cost of training but also help employees in different part of the world to integrate with the headquarter work culture, ethos, and standards.
Better consumer reach
– The expansion of the 5G network will help Bankinter Peralta to increase its market reach. Bankinter Peralta will be able to reach out to new customers. Secondly 5G will also provide technology framework to build new tools and products that can help more immersive consumer experience and faster consumer journey.
Loyalty marketing
– Bankinter Peralta has focused on building a highly responsive customer relationship management platform. This platform is built on in-house data and driven by analytics and artificial intelligence. The customer analytics can help the organization to fine tune its loyalty marketing efforts, increase the wallet share of the organization, reduce wastage on mainstream advertising spending, build better pricing strategies using personalization, etc.
Using analytics as competitive advantage
– Bankinter Peralta has spent a significant amount of money and effort to integrate analytics and machine learning into its operations in the sector. This continuous investment in analytics has enabled, as illustrated in the Harvard case study Internet Customer Acquisition Strategy at Bankinter, Spanish Version - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Bankinter Peralta to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Finance & Accounting industry, but it has also influenced the consumer preferences. Bankinter Peralta can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Use of Bitcoin and other crypto currencies for transactions
– The popularity of Bitcoin and other crypto currencies as asset class and medium of transaction has opened new opportunities for Bankinter Peralta in the consumer business. Now Bankinter Peralta can target international markets with far fewer capital restrictions requirements than the existing system.
Low interest rates
– Even though inflation is raising its head in most developed economies, Bankinter Peralta can still utilize the low interest rates to borrow money for capital investment. Secondly it can also use the increase of government spending in infrastructure projects to get new business.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Bankinter Peralta can build a diversified supply chain model across various countries in - South East Asia, India, and other parts of the world. This reconfiguration of global supply chain can help, as suggested in case study, Internet Customer Acquisition Strategy at Bankinter, Spanish Version, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Identify volunteer opportunities
– Covid-19 has impacted working population in two ways – it has led to people soul searching about their professional choices, resulting in mass resignation. Secondly it has encouraged people to do things that they are passionate about. This has opened opportunities for businesses to build volunteer oriented socially driven projects. Bankinter Peralta can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Buying journey improvements
– Bankinter Peralta can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Internet Customer Acquisition Strategy at Bankinter, Spanish Version suggest that firm can provide automated chats to help consumers solve their own problems, provide online suggestions to get maximum out of the products and services, and help consumers to build a community where they can interact with each other to develop new features and uses.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Bankinter Peralta in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Finance & Accounting segment, and it will provide faster access to the consumers.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Bankinter Peralta can use these opportunities to build new business models that can help the communities that Bankinter Peralta operates in. Secondly it can use opportunities from government spending in Finance & Accounting sector.
Threats Internet Customer Acquisition Strategy at Bankinter, Spanish Version External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Internet Customer Acquisition Strategy at Bankinter, Spanish Version are -
Regulatory challenges
– Bankinter Peralta needs to prepare for regulatory challenges as consumer protection groups and other pressure groups are vigorously advocating for more regulations on big business - to reduce inequality, to create a level playing field, to product data privacy and consumer privacy, to reduce the influence of big money on democratic institutions, etc. This can lead to significant changes in the Finance & Accounting industry regulations.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Internet Customer Acquisition Strategy at Bankinter, Spanish Version, Bankinter Peralta may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Finance & Accounting .
Technology acceleration in Forth Industrial Revolution
– Bankinter Peralta has witnessed rapid integration of technology during Covid-19 in the Finance & Accounting industry. As one of the leading players in the industry, Bankinter Peralta needs to keep up with the evolution of technology in the Finance & Accounting sector. According to Mckinsey study top managers believe that the adoption of technology in operations, communications is 20-25 times faster than what they planned in the beginning of 2019.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Bankinter Peralta with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Capital market disruption
– During the Covid-19, Dow Jones has touched record high. The valuations of a number of companies are way beyond their existing business model potential. This can lead to capital market correction which can put a number of suppliers, collaborators, value chain partners in great financial difficulty. It will directly impact the business of Bankinter Peralta.
Easy access to finance
– Easy access to finance in Finance & Accounting field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Bankinter Peralta can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
High dependence on third party suppliers
– Bankinter Peralta high dependence on third party suppliers can disrupt its processes and delivery mechanism. For example -the current troubles of car makers because of chip shortage is because the chip companies started producing chips for electronic companies rather than car manufacturers.
Environmental challenges
– Bankinter Peralta needs to have a robust strategy against the disruptions arising from climate change and energy requirements. EU has identified it as key priority area and spending 30% of its 880 billion Euros European post Covid-19 recovery funds on green technology. Bankinter Peralta can take advantage of this fund but it will also bring new competitors in the Finance & Accounting industry.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Bankinter Peralta in the Finance & Accounting industry. The Finance & Accounting industry is already at various protected from local competition in China, with the rise of trade war the protection levels may go up. This presents a clear threat of current business model in Chinese market.
Stagnating economy with rate increase
– Bankinter Peralta can face lack of demand in the market place because of Fed actions to reduce inflation. This can lead to sluggish growth in the economy, lower demands, lower investments, higher borrowing costs, and consolidation in the field.
Backlash against dominant players
– US Congress and other legislative arms of the government are getting tough on big business especially technology companies. The digital arm of Bankinter Peralta business can come under increasing regulations regarding data privacy, data security, etc.
Shortening product life cycle
– it is one of the major threat that Bankinter Peralta is facing in Finance & Accounting sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Aging population
– As the populations of most advanced economies are aging, it will lead to high social security costs, higher savings among population, and lower demand for goods and services in the economy. The household savings in US, France, UK, Germany, and Japan are growing faster than predicted because of uncertainty caused by pandemic.
Weighted SWOT Analysis of Internet Customer Acquisition Strategy at Bankinter, Spanish Version Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers in the HBR case study Internet Customer Acquisition Strategy at Bankinter, Spanish Version needs to zero down on the relative importance of each factor mentioned in the Strengths, Weakness, Opportunities, and Threats quadrants.
We can provide the relative importance to each factor by assigning relative weights. Weighted SWOT analysis process is a three stage process –
First stage for doing weighted SWOT analysis of the case study Internet Customer Acquisition Strategy at Bankinter, Spanish Version is to rank the strengths and weaknesses of the organization. This will help you to assess the most important strengths and weaknesses of the firm and which one of the strengths and weaknesses mentioned in the initial lists are marginal and can be left out.
Second stage for conducting weighted SWOT analysis of the Harvard case study Internet Customer Acquisition Strategy at Bankinter, Spanish Version is to give probabilities to the external strategic factors thus better understanding the opportunities and threats arising out of macro environment changes and developments.
Third stage of constructing weighted SWOT analysis of Internet Customer Acquisition Strategy at Bankinter, Spanish Version is to provide strategic recommendations includes – joining likelihood of external strategic factors such as opportunities and threats to the internal strategic factors – strengths and weaknesses. You should start with external factors as they will provide the direction of the overall industry. Secondly by joining probabilities with internal strategic factors can help the company not only strategic fit but also the most probably strategic trade-off that Bankinter Peralta needs to make to build a sustainable competitive advantage.
