Mountain Bank a Case Study

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Assignment #1 Business Strategy
Strayer University
HRM530 Section 016
April 23, 2011

Mountain Bank
A Case Study

I. I would recommend that Mountain Bank implement the following competitive strategy for the reasons given:
a. Mountain Bank should follow the differentiation strategy.
i. Mountain Bank should follow this strategy because few organizations can successfully use the cost leadership strategy. One problem with a cost leadership strategy is usually only one organization can be the lowest-cost provider in any industry. The organization that is often successful at the cost leadership strategy is an organization that has a large share of the market (p. 48). Mountain Bank does not have a large share of the banking market. Mountain Bank is located in the northwest United States. According to current estimates Mountain Bank has about fifty percent of the market for retail banking, about twenty-five percent of consumer lending market, less than ten percent of the real estate and mortgage banking market, and less than five percent of the corporate banking market in its area (p. 69). ii. Another reason that Mountain Bank should follow this strategy is one of the best methods for achieving gains in the real estate banking and corporate banking is cross-selling. Cross-selling occurs when tellers and customer service representatives convince customers with retail accounts to open corporate accounts or to obtain home mortgages from Mountain Bank. Recent studies have found that bank tellers are critical to the success of Mountain Bank. One study found that customers’ experience with tellers is the single most important driver of customer satisfaction (p. 69). Mountain Bank should focus their area of differentiation on providing excellent customer service. They should emphasizing individual contributions and develop specific employee skills.…...

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