What is Jyske Bank’s new positioning or competitive differentiation strategy? As stated in the case, Jyske Bank’s new positioning strategy is strongly believed to be found in its values and differences by the managers. The bank also has a differentiation strategy. This is evident in the following statement, “Managers determined that if the bank were to be true to its values, it would have to deliver service differently from both how it had in the past, and how other banks delivered service. ” (P.
573, Zeithaml, Bitner, Gremler).Their differentiation strategy is referred to in the text as ‘operationalized’ meaning they were looking to turn variables into measurable factors. Jyske Bank also had their core values which guides all aspects of the organization’s life. Jyske Bank worked to create unique settings that give customers a different banking experience. They allowed the customer to build a certain relationship with the service providers so they felt that the service providers dedicated their time to them and care about them and their family. 2. What changes did the bank make to get to its new position?What effect did these changes have? In order to achieve success in a business changes are inevitable at some point.
The staff at Jyske Bank proved they were not afraid to make these changes. They made both tangible and intangible changes where necessary not only to influence the outcome of the business but also to provide guaranteed customer satisfaction. The tangible changes they made were changes to the account teams, branch design, and details while the intangible changes were training, empowering the branches as well as throughout the bank, management style, and human resources.The effect of these strategic changes as lead to an increase in customer satisfaction based on data collected by independent third parties and has the highest customer satisfaction level among its major competitors. The tangible benefits have lead to customers being assigned to branch employee to ensure an employee is always available to assist his/her customer rather than having a customer wait. This will show customers how important they are and allow employees to better understand their customers so they can identify and solve their problems.The redesign of branches as allowed customers to enjoy a cup of the bank’s quality coffee or allow the customer to give his/her undivided attention to a representative in getting his/her transactions done and not worry about their kids as they are comfortable amusing themselves with toys in the play center.
Even the pictures on the employee business cards meant a lot to the business because they were concerned about how customers would perceive the way employees looked.The intangible changes ensured that customers were adequately trained to fulfill their roles to ensure they deliver what is promised. They also ensured that they were delivering value through empowerment. 3. Analyze Jyske Bank’s success using the Service Quality Gaps Model found in Chapter 2. What are Jyske Bank’s strategies for closing the 5 gaps in the model? Gap 1: The Listening Gap – This gap can be closed by listening to customers in multiple ways through employee communication. This is done by Jyske Bank by assigning customers to specific branch employee.
Gap 2: The Service Design and Standards Gap – To close this gap well-defined new service development and practices need to be employed. Jyske Bank did this by redesigning their branches to make customers feel welcome and more comfortable. Gap 3: Service Performance Gap – This gap can be closed through adequate training of employees. Jyske Bank did this by training all employees to be experts in their field to deliver the best service to their clients. Gap 4: Communication Gap – This gap can be closed by providing what is promised to customers.Jyske Bank did this by providing superior value to its targeted customers through investing in employees, systems, and infrastructure. Gap 5: Customer Gap – Delivering excellent service and exceeding the customers’ desires may close this gap.
Jyske Bank did this by delivering their core values and finding time and ways to listen and solve customer’s problems. 4. In your opinion can Jyske Bank sustain its growth and success? Would you invest in Jyske Bank? In my opinion Jyske Bank can sustain its growth and success.This is possible if they retain their valued customers and engage in new customer segments. This can also be done by continuing to deliver what is promised, meeting and exceeding customers’ expectations and closing all 5 gaps. I would invest in Jyske Bank because the way they structure their company is geared towards continuous growth, they are focused on delivering what is promised and they’re true to their values.