The Bank of America Case

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CASE STUDY: BANK OF AMERICA
George Koduah
October 30, 2012 CASE STUDY: BANK OF AMERICA
Introduction
Modern marketing practices have assumed a global perspective such that organizations must continually innovate their product and service offering to stay competitive and profitable. This situation has been exacerbated by increase consumer access to information, consumer quest for individuality, better product/service and better pricing. In the case of Bank of America (BoFA), such issues become very important during the global recession of 2007 and thereafter with its decision to embark on mobile banking.
Strategic issues and problems
The introduction of mobile banking by Bank of America was necessitated by the global recession which dwindled its retail section as customers increased the use of their money at the bank, with and the banks losses in other areas of the bank’s operations due to miscalculated acquisitions and bad lending practices (Gupta & Herman, 2010, p. 3). Mobile banking was one of management’s strategic approaches to rejuvenate the bank’s financial fortunes, maintain or increase its customer base and remain profitable. Management must make a decision on how to package the mobile banking program to the market considering cost and coverage to differentiate itself among competitors, and benefit from the various profit opportunities offered by mobile banking. The strategic issues facing BofA are the consideration of the extent mobile banking coverage, type of mobile system to use, timeline for the implementation and the combination of the mobile banking with the other channel mix and programs of the banks to create a balance effort. The major problems are the cost associated with program delivery, competition and uncertainties related to customer's reactions. Also, there is the need for considerations of internal branch demands for mobile…...

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