Capitec Bank (South Africa) Implementing the Bottom of Pyramid Strategy
Project Report
On
“ CAPITEC bank (South Africa) implementing the Bottom of Pyramid strategy
”
Submitted To:
Dr.Veena Dutta
Prepared By:
Fagun Naiyyer
PGDM 2011-13
11GM021
Executive Summary
Little research has yet been undertaken in South Africa about commercial banks that are servicing the microenterprise and micro lending market. The objective of this project was to investigate the key factors that should be considered by capitec bank in South Africa servicing the microenterprise market. The focus for the study was on identifying the key factors and on investigating how the key factors were being considered. The part of the current study aimed to identify the key factors that required consideration, the focus was on Capitec bank that offered microfinance services, especially to microenterprises and low level income group. The intention was to obtain an overview of how and why the Capitec bank has considered the need to implement the bottom of pyramid strategy. From the case studies it was seen that the Capitec bank considered certain factors more than others. The other differentiating factor is how the key factors were considered, because the operating context of the different commercial banks differs. In South Africa, Capitec Bank have considered the key factors, which makes to different from others and thus enjoying that bottom of pyramid strategy which was full of potential and share
Table of Content
1. Introduction Bottom of Pyramid concept
2. Capitec Bank at glance
3. Need of BOP by Capitec Bank
4. Implementing BOP
5. Key Differentiator
6. Consumer Orientation
7. STP
8. Marketing Mix
9. Conclusion
10. References
Bottom of Pyramid – concept
The phrase “bottom of the pyramid” was used by U.S. president Franklin D. Roosevelt in his April 7, 1932 radio address, The Forgotten Man and subsequently in several books and journal articles including ‘The fortune at the bottom of the pyramid’ by C.K. Prahalad.
On
“ CAPITEC bank (South Africa) implementing the Bottom of Pyramid strategy
”
Submitted To:
Dr.Veena Dutta
Prepared By:
Fagun Naiyyer
PGDM 2011-13
11GM021
Executive Summary
Little research has yet been undertaken in South Africa about commercial banks that are servicing the microenterprise and micro lending market. The objective of this project was to investigate the key factors that should be considered by capitec bank in South Africa servicing the microenterprise market. The focus for the study was on identifying the key factors and on investigating how the key factors were being considered. The part of the current study aimed to identify the key factors that required consideration, the focus was on Capitec bank that offered microfinance services, especially to microenterprises and low level income group. The intention was to obtain an overview of how and why the Capitec bank has considered the need to implement the bottom of pyramid strategy. From the case studies it was seen that the Capitec bank considered certain factors more than others. The other differentiating factor is how the key factors were considered, because the operating context of the different commercial banks differs. In South Africa, Capitec Bank have considered the key factors, which makes to different from others and thus enjoying that bottom of pyramid strategy which was full of potential and share
Table of Content
1. Introduction Bottom of Pyramid concept
2. Capitec Bank at glance
3. Need of BOP by Capitec Bank
4. Implementing BOP
5. Key Differentiator
6. Consumer Orientation
7. STP
8. Marketing Mix
9. Conclusion
10. References
Bottom of Pyramid – concept
The phrase “bottom of the pyramid” was used by U.S. president Franklin D. Roosevelt in his April 7, 1932 radio address, The Forgotten Man and subsequently in several books and journal articles including ‘The fortune at the bottom of the pyramid’ by C.K. Prahalad.
References: * Leaders.co.za ( Website showcasing important case reviews) * Capitec analysis * Banking at BOP – Deloitte * Google images * Wikipedia * Scrbed.com * www.microsave.com