The company ING Direct: case study

Extraits

[...] On the other hand, ING Direct would offer the wide range of products and gain some new customers; 3. To launch the existing products which are successful into existing markets where the products haven't been launched yet: e.g. to provide mortgages in France and Italy; 4. To open few branches in order to have better interaction and create closer relationship with customers. This would lead again increase of the operational cost, loss of competitive advantage of the lowest costs and decreasing of interest rate or profit loss. [...]

[...] It would be a new free service for the customers which can be very useful. ING Direct's SWOT Analysis 3. Options Competitive advantage can be developed through: Costs 1. Outsourcing of providing of some products which are not very profitable such as payment accounts, ATM cards, insurance and to focus only on products which are the most profitable (savings account, mortgages, mutual funds); 2. Cooperate more with the ING Group companies; 3. To develop partnerships with other local companies (banks, insurance companies ) and cooperate with them e.g. [...]

[...] This leads to higher satisfaction of customers. [...]

[...] Outsourcing of some products which are not very profitable such as payment accounts, ATM cards, insurance : To focus only on products which are the most profitable: savings account, mortgages, mutual funds; If there is any company from ING Group operating on the same market, these activities can be outsourced to these companies, since they are specialized in these activities, so they could do it in more efficient way; This will lower the cost even more; on the other hand it will obviously reduce the profit of ING Direct, but in case that the above mentioned activities will be outsourced to companies from ING Group, the profit will stay in the Group; In order not to be perceived only as a discounter and to offer far more than just great prices alone, ING Direct should provide also better customer service and strengthen the interaction and create closer relationship with customers. This could be done through opening few more cafes. This is far cheaper than opening a branch. The cafes were set up to provide to customers a choice how they could transact with ING Direct. [...]

[...] ING Direct offers gross today in France. But if you compare with the traditional bank's rate, it is not very different. It is more noticeable with the net rates. Differentiation 1. Internationalization: to enter new markets in Europe and in long-term aspect the markets in Asia and South America: Europe: the most efficient would be to enter the markets of EU including some new EU members first like Belgium, Luxembourg, Greece, Switzerland, Hungary, Poland, Czech Republic, Slovakia, Slovenia ; Asia, South America: there are only few countries which fulfill the above requirements, countries that are the most developed within this area and large countries like Japan, China, India, countries in SE Asia (Singapore, Taiwan, Korea, Hong Kong, Indonesia, Thailand), Mexico, Brasilia, Chile; 2. [...]