The two retail companies picked are Walmart and Costco whose 2017 Financial statement links are provided below: WALMART https://www.nasdaq.com/symbol/ wmt/financials?query=income- statement COSTCO https://www.nasdaq.com/symbol/ cost/financials?query=income- statement Both organizations are well known brands and position themselves well with their customer base. Walmart’s value proposition is “We save people money so they can live better”. On the other hand, Costco’s value proposition is “All-in-one convenience and everyday affordability”. Both retailers focus on cost saving for their customers. Looking at their financial statements and by analyzing them a few key areas are evident when comparing the two organization. Looking at the current ratio and quick ratio we can determine the short-term solvency of each organization. The current ratio can be determined by dividing the assets by the liabilities. Walmart’s current ratio sits at 0.86 while Costco’s sits at 0.99. The quick ratio is c
Consumers Credit Union founded in Lake County, IL serving its customers successfully from 1930. It offers range of banking services to its customers and successfully competes with all other huge MNC Banks like Chase, Citi, Bank Of America, HSBC, Wells Fargo etc.
Giving access to services for all customers:
Consumer Credit Union reaches to customer groups who are relatively under privileged (like students, rail road workers, small factory workers, small businesses etc.) and typically have challenges in meeting the requirements of regular MNC Banks like Chase, Wells Fargo, Bank of America, Citi, HSBC etc. to avail the required banking services.
Its relaxed norms and requirements provide ease of access to all customers for various banking needs like access to checking accounts, consumer mortgage loans, credit cards etc.
For example, if we compare the difference between the minimum balance requirement for maintaining a Checking account with Chase or Wells Fargo which usually require a minimum balance of $2500, the Consumers Credit Union requires a minimum balance of $5.
Tailor make products specific to its customers, to make sure they meet all their needs:
Consumer Credit Union tailor makes its products (for example auto loans, personal & business loans at low interest rates, issuing credit cards) keeping in mind the needs of specific segments (like students, low income employees), who could never think of approaching MNC banks to avail those services. This precision not only ensures the product meet the needs of its customers with a high degree of success, but also creates reliability for its customers and gives sense of relief for them.
Providing on par services with regular MNC Banks:
On par with the MNC counterparts, Consumer Credit Union provides online access and internet banking services, drive thru services, extended branch hours to its customers.
Consumer Credit Union is a member of the CUNA Mutual, which enables it to provide access to additional services like automobile insurance, Personal insurance to its customers, which it doesn’t provide on its own.
Providing ease of use of its services to customers:
Consumers Credit Union offers great flexibility in its services to its customers. Most of their branches are located close to their targeted customers, branches operate extended hours to be more convenient for their customers to attend banking works after their regular work hours, provide drive thru services for extended hours etc.
Attractive Pricing for its products and services and Promotion:
As Consumers Credit Union not purely driven by profit motto, Pricing for the services offered by Consumers Credit Union is very attractive compared to the large MNC banks. Its low advertising costs and direct reach to customers, enable to reduce unwanted business expenses, in-turn less cost to its customers. Word of mouth publicity with in its member groups act powerful, in bringing new customers.
Market Segmentation and Positioning:
Consumers Credit Union is well positioned in market segments which are not reachable to the MNC Banks, (like students, home makers, low income working class, small scale businesses etc.) who do not wish to maintain large balances, but require access to regular banking services.
Strategy which made it successful:
Clearly defined objectives, identifying the needs of the targeted market segment and understanding their requirements better, analyzing the competitor’s limitations and weaknesses in reaching out to the specific market segment, tailor making the products to best suit the customer needs, offering quality services and ease of use operation style with flexibility, creating reliability for its customers to ensure a long-standing relationship made Consumers Credit Union a success story.
Reference:
(n.d.). Retrieved February 18, 2018, from https://www.myconsumers.org/
(n.d.). Retrieved February 18, 2018, from https://www.cunamutual.com/
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