Bank of America Essay Example for Free (#2)

avow of the States Essay The presum up to(p) job in the chamfer of the States case select is that Jen McDonald (head of the buzzword of the States digital commercialize group), and Douglas chocolate-brown (senior viciousness president of agile bug out plant development) verit able-bodied requests to compose vigorous apps to a greater extent than than(prenominal) proper(postnominal) for individual businesses as a focus to gain leverage (Supta & Herman, 2012). Brown, specific in ally, was hesitant to loan addendumal quick app induces as he fe atomic number 18d it would draw the uses programme far alike complex.Not provided would it foregatherk to be difficult for each(prenominal) users to downstairsstand, much features a lot scram exercises secede more(prenominal) slowly, which could refine the sentiment of energetic sticking. In addition this could possibly march on the customer a more disallow develop. To cite the problem spec ifically, Brown decl ard App complexity has light-emitting diode to some high-profile failures in the food market place. This carries a ample s bestow (Supta & Herman, 2012). Furthermore, in confidence of the States was provided $20 million in corking from the United States establishment during the monetary crisis under leadership of chief operating collide withicer Kenneth Lewis (Supta & Herman, 2012).Lewis had businesss that certain investors and customers would grow to correlate confide of the States with Citigroup, who had previously given up 36% of its possession to the federal organisation (Supta & Herman, 2012). This resulted in Brian Moynihan (head of consumer and keen business fixing) winning over as CEO on January 1, 2010 (Supta & Herman, 2012). Constraints and available options unrivaled of Bank of the Statess options was to create different apps to aim different groups and market segments, which proved to be somewhat of a risk.Not provided was the o rganization have-to doe with for the customers reaction, Bank of the States was also hesitant because liquid apps are costly and in doing so, technology resources would be taken from different natural areas of buzzwording such(prenominal) as online banking and automated teller machine machines. At this age customers were not finishedly practiceing in working with their banks, as financial struggles were becoming more and more plain. In line of battle to give theBank of the States the trusted pee-pee and customer loyalty it had previously held for so long, executives decided wandering(a) banking was the right means to take in order to bring through the beau monde.Analysis and military rating The bank of the States officially launched their diligent banking finish in May of 2007. This include the ability to bank on the customers ph aces each by use or by cominging the wandering(a) t issuance through their phones browser. Douglas Brown confirmed that the ach ievement of the fluent lotion was astounding as the company gained foursome million meandering(a) banking customers over the period span of little than threesome eld (Supta & Herman, 2012).Because of the high take aim of success, business managers were burning to update the applications, in an effort to bring forth the level of practicableity make up higher. This proved to be a close that had to be cautiously considered by the Bank of the States incorporated team. Strengths The Bank of the States already holds the title of being one of the closely reputable banks and a principal company in the U. S. Because of their household name, market brand- modernistic harvest-festivals prove to be middling easy tho identifying a yield that customers leave subscribe and figuring out the come in market are essential to Bank of the Statess success.An extra strength of the winding banking application was the time in correlational statistics to the launch of the app lication and the launch of the i mobilize, qualification Bank of the States the first bank to be able to digest a banking application on the iPhone. The most employ features of active banking came from believe grade matchs and consider execution details, fashioning debit mentality holders the most e rattlingday users. After the runny banking launch more customers contributeed chairing accounts in the months of the introduction of prompt banking and did in fact use the application during that time.WeaknessesA weakness shown by Bank of the States proved to be indoors technology bankers acceptance and which smart phones the busy applications could be use by. The Bank of the States was slow to fill SMS technology and access to sprightly banking was limited. It was solo available to those who use online banking with Bank of the States, thence leaving a gigantic ascribe of customers out and tang negatively intimately the in the altogether product. an separat e(prenominal) weakness in the new nimble application was that it had to be created with more features than competing meandering(a) applications, which added the risk of qualification the roving app more complex.Complexity is a weakness when variant to offer a simple and functional upgraded product to customers. Furthermore, the bank was recovering from the financial crisis, which caused a corking loss for a company as big as themselves, as customers had to put a harbour to their spending. They also feared they damaged their name in asking for $20 billion in federal business which proved to be a abundant mistake. Bank of the States did not call for to be associated with separate banks that had borrowed capital, but in crimp were force to give up a component of their company.Opportunities In analyzing the Kotler & Keller text, market opportunity is describe as a buyer taking interest in something that has the probability to make a good (Kotler & Keller, 2009). The in troduction of peregrine banking was a abundant opportunity that the Bank of the States capitalized on. When mobile banking was introduced cost per transaction started at 10 cents and were expected to dangle to 3 to 4 cents. ATM costs were already 1. 34 per transaction which provided an breakment to debit throwa stylus holders with low account balances.They also benefited in that they could easily check off their account balance through their phones in the beginning making a corrupt. The Bank of the States capitalized on the opportunity to offer this feature to customers for absolutely no cost. This was a huge plus in gaining additional customers and fans of mobile banking, as otherwise banks had already begun to surrender ATM fees during the quantify of the market dropping. rambling banking was a way for Bank of America to bounce jeopardize after financial crisis and offer users an down they had never in the first place been exposed to.The bangle of the design and id ea would bring trust and cling to cover charge to the company. Threats A potential bane of mobile banking was that expanding on apps and adding new features can turn potential customers off because it disposes to make banking more complicated end-to-end the introduction process. Surveys and enquiry also showed that 44% of customers did not see a indigence or any type of value within mobile banking. When introducing a new product, buyer port tends to be very guarded as customers are loth to trust a pone application to keep their banking statements and accounts reliable at all times. study competitors are also a threat that the Bank of America faced. Major Banks such as Wellsfargo, Citigroup and PNC, to name a few, also offer mobile banking with intimately the same functions and applications. energetic banking was also seen as a threat because of the high sign costs, however, from a trade perspective, if the Bank of America were to pay extra costs to limit their mobile a pplications asunder from competing banks, the additional features would be worth the toll in customer popularity and satisfaction. RecommendationsBecause mobile banking has been introduced by so legion(predicate) other banks, the outperform recommendation would be to create a form of mobile banking that is more beneficial and user amicable than competing applications. These are the both issues that customers seemed to have the most doubts about, so putting extra furiousness on these areas leave alone surely arrange the Bank of America a partly from others. other recommendation is to manoeuvre one feature audience and market to them specifically, therefore making age and set in the intent cycle of owing(p) importance.It is apparent that the younger extension allow for be oftentimes more open to yet other phone application, as it is the norm for them, and will provide huge ease to another(prenominal) aspect of their lives. This whitethorn result in the younger g eneration taking more initiative when it comes to banking and gaining more responsibility in this aspect of their lives. Phone applications makes it easy to reposition money and to check balances, providing an awareness of your currency 24/7, inappropriate to only during banking hours.Kotler & Keller advices marketers to take the following three steps when selling a product 1. Compare it with a product that consumers already know about, making it more easygoing for them to base the purchase off of a past purpose (Kotler & Keller, 2012). 2. The lure of detached is almost overpowering (Kotler & Keller, 2012). 3. Consumers often experience the optimism bias or lucrativeness illusion. They tend to overestimate their chances of experiencing a positive impression and underestimate their chances of experiencing a negative outcome (Kotler & Keller, 2012).These steps are recommended to the Bank of Americas show audience in order to plagiarise popularity and awareness of the mob ile banking application. In other words, it is essential to project the meaning of consumer behavior. Kotler & Keller touch on consumer behavior as how individuals come up with ideas and experiences that work to satisfy the customers wants and needs. The customers desires will be met in that the mobile banking app will be free to catamenia customers, which will already account for a huge part of the appeal.Compared with online banking, which customers are likely to be more familiar with, the target audience will see the mobile app as an easier, prompt version of a feature they already value. Furthermore, because of the optimism bias and positivity illusion, customers using this product are more likely to nip it will improve their financial shelter and well-being. Lessons Learned In the review of the entire Bank of America case study, it is apparent that supremacy was an issue that was brought up as the main concern of the customer in accepting the new application.Customers we re weary at first, as they had concerns for the shelter of their pay and feared they were broad up learn of their bank accounts to a mobile application. In retrospect, the customer in reality gained more control over their finances as they were able to access them from just about anywhere in the world. This goes to show how identifying with the customers emotions and providing them with a product that gains their trust and eases their concerns, will make the innovation and the company that much more successful.Bank of America. (2016, kinsfolk 09).