How companies can stay competitive?
During this year summertime, do you still remember what the promotions banks offer? In case you don’t know or you cannot recall, the following are some of the promotions that they offer during this summer.
- Get a free IPad mini by opening a new all-inclusive banking account in RBC.
- Get $400 cash when you open an EverydayPlus chequing account, Unlimited chequing account or PremierService account in CIBC.
- Earn up to $300 cash bonuses from BMO when you open a new chequing account.
After reading these highlights, you might be interested in opening a new account in one of the banks above, or you might be regret opening a bank account in the past because you miss a good deal. Yet, there are some questions you should think about:
- Is the IPad mini actually free?
- Is the bank just giving away their money to you?
- Are you actually earning these money from them?
After considering those questions mentioned above, you might start wondering how they are making money out of it. In fact, bankers are using this kind of strategy to recruit more customers in a short period of time, but charging the services you receive during the contract period as a long term benefit. Additionally, banks, in order to ensure your loyalty during the contract period, you will be charged a certain amount of money when you suspend your account.
In this case, you are happy because you get a good deal by using their services, while the banks are happy because they are recruiting more potential customers in the market. Therefore, using the principles of designing competitive strategy can help a company to increase its profits and become more sustainable and competitive.
Sources: http://www.rbcroyalbank.com/open-an-account/ipadmini/index-org.html
https://www.cibc.com/ca/features/tim-visa-card-bank-account-offer.html
Images: https://www.cfmws.com/en/OurServices/CDCB/ArticleImages/CDCB_Summer2014_EN_211x200.gif
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http://www.bargainmoose.ca/wp-content/uploads/2014/09/CIBC.jpg
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