Case Study Jyske Bank
Jyske Bank was established in 1967 after merging four Danish banks operating in Jutland. Jyske Bank had been considered as a typical Danish bank, which is prudent, conservative, well managed and undifferentiated till the late 1990s. However, with the new strategy, the bank developed to guide differentiation from the mid of 1990s among great amount of Danish banking customer satisfaction.
Q1. What is Jyske Bank’s new positioning or competitive differentiation strategy?
Base on the case, Jyske Bank’s new positioning strategy is strongly believed to be developed from its core values and Jyske Differences by the managers. In order to achieve Jyske Differences, which comes from Jyske Bank’s core values, the bank’s managers just became overt about values they had long held.
The core values allow managers to reevaluate how the bank operate and service its consumers. Therefore, managers decided to have some specific practices that deliver service differently from both how it had in the past, and how other banks delivered service. In other words, they would have to change their conservative position of the past and become a service driven and customer innovative bank within the competitive banking sector.
With the assistant of Dutch consultant that the research findings showed the target market consisting mainly of Dutch families (60% retail) and small Danish businesses (40% commercial), were favorable towards the idea of bank that had a persona and believed in what it stood for. Additional research was also conducted in more difficult areas concerning the banks 4P's- Product, Place, Price and Promotion from a customer orientated standpoint. In contrast, soft factors such as customer relationships with the bank, served as the bank's differentiation. From Exhibit 1, which indicates that Danish Banks were in intensive competition, Jyske Bank’s managers should reestablish its competitive position, it went through a major transformation and positioned itself as a
Q1. What is Jyske Bank’s new positioning or competitive differentiation strategy?
Base on the case, Jyske Bank’s new positioning strategy is strongly believed to be developed from its core values and Jyske Differences by the managers. In order to achieve Jyske Differences, which comes from Jyske Bank’s core values, the bank’s managers just became overt about values they had long held.
The core values allow managers to reevaluate how the bank operate and service its consumers. Therefore, managers decided to have some specific practices that deliver service differently from both how it had in the past, and how other banks delivered service. In other words, they would have to change their conservative position of the past and become a service driven and customer innovative bank within the competitive banking sector.
With the assistant of Dutch consultant that the research findings showed the target market consisting mainly of Dutch families (60% retail) and small Danish businesses (40% commercial), were favorable towards the idea of bank that had a persona and believed in what it stood for. Additional research was also conducted in more difficult areas concerning the banks 4P's- Product, Place, Price and Promotion from a customer orientated standpoint. In contrast, soft factors such as customer relationships with the bank, served as the bank's differentiation. From Exhibit 1, which indicates that Danish Banks were in intensive competition, Jyske Bank’s managers should reestablish its competitive position, it went through a major transformation and positioned itself as a