Creating Blue Oceans in Sun Trust Bank Essay Example

reason for low turnout in SunTrust Bank.

Path three: Looking across Buyer Groups

Under this path, the company will focus on same group of buyers with regard to purchasers, user and influencers in a certain company or for a certain product. Therefore, the blue ocean strategy should be formulated by establishing the main buyer in the bank, the buyer group that the bank should focus on. Afterward the bank will then establish its new avenues can be unlocked. For example, Sun Trust Bank can actually shift focus from business and working class customers who are traditionally targeted and focus on students. In doing so they should introduce micro loans that are flexible (De & Pearce, 2012).

Path four: Look across complementary product and service offerings

It is crucial for a company to think about what happens during and after the consumer use the products or services provided. This enable the company identify the shortcomings and hence develop a solution by offering a complimentary service or a product. The case of Sun trust bank, by offering micro loans to college students’ payment challenges will obviously arise (De & Pearce, 2012). To cushion this they need to introduce long-term loans that are payable upon completion of studies.

Path five: Look across the functional-emotional orientation of an industry

The company should keenly look at the emotional and functional appeal associated with its products and services. To buyers, emotional appeal is the utility that a buyer or product user receives upon consumption of a certain product or service which offers some sense of satisfaction. The company should therefore focus on raising customer’s value without necessarily increasing price and changing the products simplicity. On the other

hand, functional appeal is the customer receive after using a product or a service based on the price calculations (De & Pearce, 2012). The company thus seeks create a product/ service that infuses emotion to the customers. When a company has clearly understood its functionality and emotional appeals it can for instance complete on functionality by adding emotional elements to its products and services.

Path six look across time

Since every company is subject to external trends, it is important for the business to gain insight on the future impact of such external trends therefore enhancing adaptation to the new environment. De & Pearce (2012) maintains that by understanding that the trends are irreversible and have clear trajectory, one can easily open an unprecedented customer utility. By so doing the company creates new perspectives and its thinking become broad. Awakening is key in spearheading innovation and creating new opportunities that were seemingly unavailable.

Two new strategies for Sun Trust bank

Based on the six path analysis, SunTrust bank can choose to adopt the proposed of giving long term loans to college students. Payment of the loan should commence upon completion of studies. By doing this, in a span of four to eight years, the bank will acquire over 80% of fresh graduates as their new customers (De & Pearce, 2012). This strategy directly ignores the traditional competition like lowering interest rate and embrace an unexploded market space. Its revenue will definitely increase due to the increase in the number of customers.