Background: Pinnacle targets small businesses and their
owners (individuals with personal assets greater than $250,000.)
In terms of competitive advantage, Pinnacle has several
elements that are worth mentioning.
1.
Pinnacle competes with larger banks that have
many more branches than them. To get a leg up, Pinnacle has a courier deposit
pick up system. This is a convenience to customers because they don’t have to
go to the bank to make deposits.
2.
Pinnacle customers get unlimited usage of any
ATM in the world with no surcharge fee. This is different from other banks who
charge their customers a fee to use any ATM that’s not owned by their bank.
3.
Pinnacle invest a lot in its customer and
attracting and retaining highly skilled employees. The company’s associate
retention rate is 96 percent compared to an industry standard of 75 percent. It’s
listed as one of Nashville’s best places to work.
These are just a few examples of items that are strengths
for Pinnacle. In term of evaluating general managers look at the fact that
Pinnacle targets experienced managers who have worked for their competitors.
This shows that Pinnacle’s general managers are more qualified than the average
general manager and this is a competitive advantage. Most of them also bring
inside knowledge of their competitor’s operations.
When you look at VRIO, by offering conveniences like free
ATM transactions and courier deposit pick up, Pinnacle has created value for
its customers. A competitor can try to duplicate this, but these are just two
examples that are part of a culture of innovative customer trends. This culture
would be hard for competitors to duplicate because there are probably many
small things that contribute to the overall customer experience.
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