Mountain Bank
Autor: cjoiner1968 • April 20, 2012 • Research Paper • 1,373 Words (6 Pages) • 1,948 Views
Discuss the strategies that Mountain Bank should implement to achieve a competitive advantage in the marketplace.
The business strategy that Mountain Bank should implement to achieve a competitive
advantage in the marketplace, should make it difficult for competitors to duplicate and produce
goods and services that is incomparable. According to the case study, Mountain Bank has four
major business lines: retail banking, consumer lending, real estate and mortgage banking.
Deregulation in the banking industry has led to mergers and acquisitions for Mountain
Bank, as well as for some of its competitors (Stewart& Brown, 2009).
The two general business level organizations that can engage in a wide variety of strategies in
which businesses can compete are cost leadership strategy and differentiation strategy. However,
the cost leadership strategy tries to find ways to become producers of low cost goods and
services; therefore, their goal is to develop effective methods that allow them to sell products
lower than their competitors. When using this type of strategy, only one bank that can be the cost
leader. According to the case study, Mountain Bank provides the same products and services as
the other banks in the area, however, the mergers and acquisitions within the banking industry,
allow the larger banks to expand. On the other hand, a larger bank can be very beneficial,
by lowering the cost of services and their interest rates enough that a smaller bank would not
be able to compete (Stewart& Brown, 2009).
The other strategy would be the differentiation strategy. The differentiation strategy pursue to
produce goods and services that are by some means greater than the goods and services provided
by competitors; their goal is to create distinctive rate for which customers are willing to pay a
higher price. For instance, using this strategy would lead Mountain Bank into creating a unique
bank which are different from the others banks. The advantage to this business strategy would be
allowing
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