The ally bank launched in 2009, when the market is at worst time possible but that time everyone is looking forward for a new brand and ally bank came up with creative idea was simple to build a better bank for customer rights. GMAC officially changed its name to “Ally Bank”. Ally bank comes up in market with a large customer and success rate of small business. They gave customer the online banking service that is extending its services due to that there is a less overhead but interest rates are higher as compared to other competitors. They provide the mobile service and social media services to the customers. Ally bank has focused on providing 24/7 customer service. Question and Answer:
Question 1: Conduct an internal analysis to identify resources and capabilities within both the parent company and subsidiary banking group. What are the linkages between the two organizations? Answer:
Question 2: Conduct an external analysis of general environment, industry and competitive conditions to identify Ally’s marketplace advantage and disadvantage. What competitor intelligence has the greatest strategic implications for the company? Answer: The Ally’s marketplace advantage:
Ally bank providing the low cost funding source and automotive finance and mortgage loan operation with a stable. All accounts are FDIC insured and Offer higher interest rates in the nation. To gain more profit in market share ally bank launched the new product and services every year. They provide the online services.
The Ally’s marketplace disadvantage:
Lack of business banking.
In the terms of finance they are unable to fulfill the customer expectation. They have bad impression from customer about the bank due to the troubles at GMAC. The bank of America is best competitor that has greatest strategic implications for the company. Question 3: Review ally bank’s business strategy and ally financials corporate strategy. How do they fit with internal strengths and market condition? Answer: The Ally’s bank corporate strategies are as follow: For financial products:
Online saving accounts: Interest rate are highest as compared to others while opening the account there should be no minimum balance, no account opening and maintenances fees. Money Market Account: There is facility for check card with free ATM transaction but there is limit for six withdrawals per month. Ally bank CD options: There is an offer for no penalty cd, fixed rate cd with no fees for early withdrawals. New account and services:
Ally Bank IRA’S: Services provide by ally bank can be managed through IRA. Four year raise your rate cd: Raising the cd rate twice in 4-year duration. Ally perks program: If customer will use debit card, bank will reward some money to the customer. Pop money: Send money any time in the united state through mobile, online account, email address. Bankruptcy- GMAC ResCap :
GMAC ResCap, owned by ally financial is a financial services company that focuses on residential loans. In May 15, 2012 Ally launch the company in the bankruptcy.
Increased the number of customer.
Focused on new product and offers to launch.
Question 4: Define the pressing issues requiring immediate attention from corporate leaders. What corporate structure makes the best sense in the current situation? What are the reasons behind your position? Answer: Ally bank and its leaders are facing a difficult and challenging issued. The forty percentage customers are target but rest of the customer doesn’t know what the product is. The leaders are also worried for the attributes of the products. The major issue is ally bank parent company also struggling “ally financial’ because there is a pressure from the treasury. And some believe that the bank is opened with the borrowed money or fund. In the current situation, the corporate structures make two major operations the auto finance and online deposit or sell the whole company outright. Here, the customer satisfaction is more preferable Ally bank leaders must remain flexible and they should be ready for changes. Recommendations:
It should be organized.
Lack of constant direction.
Marketing should be at national level that could be stick for long time. Stick with it.
From case study I learned that talk straight in the organization. Always do right with your customer and while launching the product the cost should be at medium scale so that easily customer can reach the product. Always try to increased the number of customer due to that profit will be more for organization. While launching the product give some offers to customer that will increase the rate scale. There should be a proper strategy or planning for the project including that target all the segment. Question for the class:
Launching an ally bank is a good discussion or not because it launch when the economy is not good?