Wamu Case Study Essay Example

population's 1% growth. Killinger listed advice from business leaders that could help him connect and focus on customers. The strategy was incredibly successful and resonated well with their target market. Washington Mutual received a substantial amount of cash from its stock and deposit accounts, which was then used to acquire more banks. In 2002, WaMu earned $19 billion in revenue and $3.8 billion in profit.

It was the largest thrift bank and the sixth largest bank overall. In the same year, shares of WaMu rose 6% and had doubled since the market peak of March 2000. 5. What key internal factors and resources support this strategy? The high morale of Washington Mutual employees contributed to the cult-like atmosphere surrounding the brand, as they referred to themselves as "WaMulians" and felt a strong connection to the organization. The inviting and attractive features of the bank, such as the radical branch floor plan, the WaMu store offering dolls for kids and personal finance books for adults, and approachable bank tellers, appealed to customers.

WaMu implemented outdoor barbeques and giveaways in new markets to attract new customers and enhance their overall experience. During meetings, Killinger, the CEO, positioned himself as the primary brand ambassador and motivated his staff, setting a spirited tone for the organization.

6. If asked for advice, I would suggest that the board of directors pay closer attention to WaMu's susceptibility to interest rate changes, considering that its net interest income accounted for approximately 60% of its total income. To mitigate potential risks, I would recommend conducting a review of historical banking trends to predict future trends that could directly impact the

company's financial performance.

In addition, Washington Mutual needs to be prepared to address any internal cultural shifts due to the rapid growth. It is typically challenging for organizations to maintain their identity after periods of rapid growth. Therefore, Washington Mutual needs to focus more on the market's perception of the organization, as indicated by the low stock price. Specifically, they should investigate why the stock price has not kept up with the earnings growth. Understanding this answer may help Washington Mutual build a sustainable strategy once they have completed their growth strategy.