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Strategic Management – 20Twenty Strategic Brilliance Or Folly – Case Study Assig

Strategic Management – 20Twenty Strategic Brilliance Or Folly – Case Study Assignment Help Case Study : 20Twenty…Strategic Brilliance or Folly 20twenty was a banking phenomenon that had a significant effect on the South African banking industry at the turn of the millennium. With a hugely successful, cheeky and in-your-face launch in July 2001, 20twenty sprang from nowhere to take on the big established banks. Positioning itself as the ally of the consumer, it declared banks to be a thing of the past and 20twenty to be the new word for banking. People signed on in droves, recruiting their friends, and within six months , CEO and founder Christo Davel reported that 20twenty had recruited some 40 000 customers. But the dream soon turned into a roller-coaster ride of twists and swoops between high-flying idealism and the crunch of the unforgiving bottom line. Saambou, at the time the fifth largest bank in South Africa, was a 65% shareholder and provided their banking licence to 20twenty. In February 2002, Saambou went into curatorship and 20twenty was left in the lurch. It survived on sheer customer loyalty for the next eighteen months while other banks, local and international, considered the possibility of acquiring the start-up. A rescue by London based Standard Chartered Bank led to a re-launch in 2004. But by the end of 2005 their international backers decided to significantly scale back their retail banking presence in South Africa. Mission and Vision 20twenty defined itself as ‘the new word for banking’. True to its maverick nature, it refused to produce anything as ‘establishment’ as a formal vision or mission statement, preferring to describe itself in a stream of pitchy catch- phrases (see ‘The launch’ section below). Nevertheless, the founder devised a well-defined ideology and culture to make 20twenty different and special, with its own distinct terminology. For example, the staff were called ‘people’, clients were called customers and call centre operators were ‘Wired Warriors’. The latter were bright, well- educated, lively, customer-focused and able to take the initiative on behalf of customers. 20twenty people were passionate about the brand and its excellent value and customer and service. This translated into powerful customer loyalty. History In 1999, Christo Davel, an insurance salesman who had successfully launched Old Mutual Bank some years before, worked together with Saambou to come up with an online banking initiative originally called the See-through Blue project. Saambou were the backers and Davel put together a team to create the ultimate customer experience. At the time The Cluetrain Manifesto was doing the rounds on the internet and it provided a call to action for entrepreneurs who saw opportunity in the exploding World Wide Web. Davel drew heavily from the manifesto. See-through Blue was built up under Davel’s leadership and launched to the public in July 2001 as 20twenty. The proposition was clear and simple: only one account- the 20one account. This was an all-in-one account to replace your credit card, current account and savings account. It offered competitive interest on both credit and debit balances, the convenience of a Visa credit card, Internet banking and a call centre to provide 24/7 access to your account. There was a flat monthly fee with no hidden costs or nasty surprises. Transparency was the key, and customer service was close to fanatical, even though there was no interaction across a bank counter. At that time, internet banking was fairly new in South Africa, and the four main domestic banks- First National Bank (FNB), Standard Bank, Nedbank and ABSA- were investing large sums of money to encourage customers to use this Task : 1 Keeping the information in the case study as the basis for your answer, use the resource based view to perform a strengths and weaknesses analysis of 20Twenty. Task: 2 Assume that you had been the Chief Executive Officer at the time when Standard Chartered bought out 20Twenty. Discuss the practical industry specific strategies that you would have pursued and implemented to would have ensure the survival of 20Twenty. Task: 3 Consider the banking industry as it stands today. There have been players who disrupted the industry such as Capitec Bank. Assume that you are in the process of resurrecting 20Twenty, a virtual bank. Recommend the appropriate strategic direction for the new 20Twenty entity. You may make reasonable assumptions to buttress your answer and if you have done so state them explicitly. Substantiate your choice of strategic direction. Strategy implementation is generally referred to as the most difficult step in the strategic management process; it is the action stage. Discuss your understanding of strategy implementation and what it takes to ensure its success with reference to the new 20Twenty as mentioned in question 3a) above. This Strategic Management assignment has been solved by our Strategic Management experts at TVAssignmentHelp . Our Assignment Writing Experts are efficient to provide a fresh solution to this question. We are serving more than 10000+ Students in Australia, UK & US by helping them to score HD in their academics. Our Experts are well trained to follow all marking rubrics & referencing style. Be it a used or new solution, the quality of the work submitted by our assignment experts remains unhampered. 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