In this article, a complete study about the Emirates NBD online bank is performed where we evaluate the success of the e-business model and e-business strategy applied by Emirates NBD. The study includes a short description about the Emirate NBD website along with a company description, findings about the online banking and its own effects on business, current segmentation, concentrating on and positioning of the business. Also, it offers an evaluation of advertising which is one of the marketing combination strategies of the web site, E-CRM of the lender and the techniques of sustaining competitive gain over other traditional and online finance institutions. The article concludes with a few pragmatic ideas that if integrated, will improve the business potential customers of Emirates NBD in the e-business market in order to achieve a tremendous success of the company and increase of gains.
All civilizations in the annals started on the banking institutions of a river, whether it was the Indus valley or Egyptian (Nile) or Mesopotamia, the river is the common denominator. The most modern civilizations of e-Commerce which may have spread around the globe today are also developed around the name of any river, Amazon! Amazon. com was one of the pioneers in the e-Business and they led dotcom companies which revolutionized the business world of today. In the last decade of the 20th century, the globe found the spurt of a fresh way to do business. Till then the basic infrastructures for the business were built of "brick and mortar", but also for this new era business community the digital network takes on the role of basic infrastructure, which world is merely a "click' from you. Everything nowadays can be performed online starting from shopping to paying your bills in a click. Which basically urged the fact the e-business market should be improved upon atlanta divorce attorneys possible way to be remembered as more convenient considering it plays a essential role in reducing money and time, heightening customer service and overcoming locations and availableness restrictions, which opens up a brand new market place to businesses of different kinds.
Online bank today constitutes of benefits and drawbacks where each has its own effects on the e-business market in general. Nowadays, there is absolutely no bank that will not come with an internet strategy that assists their success in different investments. However, the net does not assure success and takes a great deal of planning in order to keep the online services convenient. Specifically, online bank business should be studied in details in order to provide customers with fast, more responsive, reliable and inexpensive options that would ease their bank operations. Online banking opens the way for customers to have significantly more control of the bank systems by maintaining and monitoring their own accounts. Therefore the e-business should be concerned with customers' needs and satisfaction, and in this framework the technologies and the business strategy go with with e-business to provide the best experience to customers.
Banking industry is very competitive in aspect. And e-business is a perfect system that opens the best way to optimize the customer's appeal to a specific loan company since it reduces time, heightens customer support and overcomes locations and availability restrictions.
Emirates NBD is one of the primary banking group in the Middle East in conditions of assets as it was shaped on 16th of October 2007 when the stocks of Emirates NBD were officially stated on the Dubai Financial Market (DFM). The merger helped bring collectively the UAE's second and fourth largest banks (Emirates Loan provider and National Loan company of Dubai) by resources and created a banking champion with the greatest asset base in the Middle East summing up to more than AED 282 billion as by the end of the year 2008. The Group has procedures in the UAE, the Kingdom of Saudi Arabia, Qatar, the United Kingdom and Jersey (Route Islands), and representative offices in India, Iran and Singapore.
Emirates NBD is a market leader across main business lines. It's the leading retail banking franchise in the UAE, with over 129 mixed branches and over 650 ATMs/ Cash First deposit Machines spread over the UAE. The group is also a major player in the organization banking arena, with a combined market share of almost one fifth of corporate loans. With an easy growing Islamic banking associated entities, strong investment and private bank services and a leadership in the field of property management products, Emirates NBD is well-positioned to increase and deliver outstanding prices to its shareholders, customers, and employees.
Emirates NBD received many visible awards such as Mohammed bin Rashid Al Maktoum Business Honor for Money, Best Bank in the UAE by Global Funding 2009, Best Retail Lender in UAE from the Banker Newspaper and Outstanding Private Bank in the centre East by VRL Financial Reports.
Emirates NBD's choice for online bank service that provides powerful and relevant functionalities plays a essential role in their online marketing strategy. Their superior web site design allows the clients to gain access to their bank accounts easily and with complete trust.
http://www. emiratesnbd. com/personalBanking/index. cfm
Segmentation, targeting, and positioning are marketing tools employed by a company to broaden the competitive advantage in the market. They help the company to differentiate its product-offering from that of its competitors and ensure that the same reaches the precise market profile that it is supposed. Market segmentation is the process of dividing the market into similar communities based on the characteristics resolved for the product at hand. Targeting is the process of selecting the most rewarding market segments for marketing the merchandise. Positioning consists of the formulation of your definite online marketing strategy around that your product accessible would be finally marketed amongst the prospective audience.
Banking segmentation in Emirates NBD is done according to bank account type, citizen and non-residents sectors, and business/corporate accounts. However, the segmentation can be widened to include government areas, employees areas and educational areas. Federal government sector accounts would improve the banking security and relieve the use of the accounts by giving already set deals for government sectors that protect their privacy and facilitates. Associated with that different companies have business accounts from which they spread the wages. So, an programmed transfer would be performed from the father or mother account (business bill) to the kid bank account which is the employees. Lastly, educational accounts include local and international students that needs to be separated since foreign students could use different currencies to receive or save their money. Different proposed subscriptions segmentations can be carried out by using the e-banking techniques that may target each customer to his/her own options that fit their needs.
Emirates NBD e-business model is merchant since retailers directly sell goods to customers and it is considered to adopt a typical business to consumer approach. The E-Business Strategy of Emirates NBD is to provide consumers the availability of loan company services wherever they are simply in which is exhibited by the number of ATM ( 650 ATM ), and the number of branches (129 branches) that are connected together with complete privacy. Furthermore, Emirates NBD provides a website which includes all the services that different kinds of customers would need according with their subscription. For example, business members can manage their purchases online in a way that economists, researchers, analysts and investment specialists provide best alternatives that meet their business goals.
Promotion is an important part when offering the service; it is a necessary function in E-Business. This is one of the main element facets in acquiring and keeping customers. Acquiring and keeping customers is important, but more attention and money needs to be spent on the place factors, such as warehousing and syndication functions (Foster, 1999). In this case, Emirates NBD facilities that are provided in the branches, for example computers by which the customer can check his / her account and have all your options that he/she could have if being able to access it using their company homes.
However, E-commerce companies usually find some issues in advertising their website so that each customer knows their webpage and this could halt revenue progress by keeping the amount of customers constant. So, the web site should be well publicized in order to reach the utmost size of customers (new and old customers) and non-customers (who could be possible customers). The existing technology of se's, such as Yahoo and Excite, is very wide-ranging in nature (Mardesich, 1999). When buying a specific company search engines will bring up a huge variety of topics and it requires some time to narrow down the possible entries to get the needed company (Mardesich, 1999). So, minimizing the time spent looking for a website can raise the satisfaction of the clients. If they must spend twenty minutes buying particular site, they would almost certainly stop before finding it. A company can use promotion to battle these problems.
The Emirates NBD group provides more special promotional special discounts like educational loan to the students and housing loans to government employees and corporate and business companies' special discount on their interest. Furthermore, there are extensive promotion tools that can be used to be able to boost the volume of online customers. For example, pr announcements, traffic exchanges, and interpersonal networking advertisements links. Usually, the key factor that influences which way to work with in order to market the business services is bounded by the budget and the time open to do market research to discover who's the target customers and exactly how to target it.
Dr. Andreas Muther describes Customer Marriage Management (CRM) as a development of new services and deployment of information technology in the supplier-customer romance in the form of Electronic CUSTOMER SUPPORT (ECC).
E-CRM can be an approach to build and maintain long-term business with customers using customer support, emails, newsletters, mobile marketing, chatting service and other latest technologies. The Emirates NBD regularly directs mails regarding any special new services, rewards update, every month financial statement, and transfer upgrade. However, it lacks mobile marketing, chatting services and other advertising campaign on its website.
The reason for E-CRM is to generate personalized romance with the clients, to value them also to offer them the right services matching with their real needs. Even though Emirates NBD uses some of these methods to preserve good relations with the clients, it still lacks some of the other features that have been earlier mentioned that could satisfy the customers' needs.
Creating an e-business aims at using the Internet in order to successfully maintain the competitive benefit of that business and be able to achieve this competitive advantage, there should be a distinctive plan, a wide range of customers, and new creative products and services among different ways. However, Resources together aren't a basis for competitive advantages, nor are the advantages sustainable as time passes. In some instances, a source or capability can help a company increase its earnings or lower its costs, however the firm derives an edge only temporarily because competition quickly imitate or replace it. Therefore, for a learning resource to give a organization with the prospect of a ecological competitive advantage, it should have the following attributes:
The learning resource must be Valuable.
Organizational resources can be a source of competitive advantage only when they are really valuable and resources are valuable only once they enable a company to formulate and use strategies that improve its efficiency or effectiveness.
The source of information must be Rare.
If competitors also possess the same valuable source, it is not a source of competitive edge since all the organizations would then have the capability to exploit the source of information in the same way. Common strategies predicated on such a tool would not give a specific company a competitive advantage. For a source to provide competitive advantages, it must be unusual; that is, rare in accordance with other opponents. Therefore, even a valuable resource might not be a way to obtain competitive edge if it not rare relative to competitors.
The reference must be difficult to imitate.
Difficulty in imitating a source of information is a key to value creation since it constrains competition. If the source of information is inimitable then any income generated are more likely to be sustainable. Having a resource that rivals can easily copy generates merely a temporary value. Managers often neglect to apply this test and tend to bottom part long-term strategies on resources that are imitable. It's important to note that an advantage predicated on inimitability won't last forever. Competitors will eventually locate a way to duplicate most valuable resources.
Emirates NBD is trying to apply this competitive benefits by causing its services and resources valuable and unusual. Valuable in a manner that it would provides every service that the client may need which ranges from paying bills online, making online exchanges, to online consideration management and etc. It is rare in a manner that not all lenders have many of these features that are located at Emirates NBD and if indeed they have some of these, the pricing of the plans differs. Emirates NBD's strategy constitutes of changing the costs regularly, providing different offers in variable times of the entire year, and offering rewards linked to customers' spending. Opponents think it is hard to imitate what Emirates NBD offers because of the amount of earnings and market research spent and the valuable attempts of technology developers who work in the lender.
As the study has shown, Emirates NBD is missing some of the e-business strategy requirements that may increase their profit by satisfying existing customers and getting more customers to their bank. The promotion budget should be increased to become in a position to advertise the features that are available on the website, on tv set and bulletin boards in addition to including advertisement in social networking websites like Facebook and Myspace. With regards to the website itself, live talk should be included which allows customers to directly speak to a consultant as this can help the customers with their technological problems.
The Emirates NBD should increase their selection of banking services by providing more personal services to certain customers that meet the criteria according to specific criteria. Indeed, at the moment, the business is using this amazing site as an expansion to their existing services, which will not enable them to offer real advantages on the website. Promoting the website by personalizing some services to online accounts and online buying of services could help establish the mandatory advantage of the services provided. Put into that, for customers' convenience and satisfaction, online surveys could be performed on the bank website to be able to check the satisfaction of customers about the assistance provided. Getting a blog where customers could exhibit their experience and suggestion of different services is also a good notion that could make customers feel more comfortable.
It is true that the company is not facing any serious problems and is really increasing its revenue year after year yet, in order to keep sustainability and reduce the expenses of overloading the branches and the client services employees, e-Business is an excellent way that permits to raise the profitability, decrease expenses and keep maintaining current customers.