Formulating a Blue Ocean Strategy in the Banking Services Industry: Enhancing Customer Satisfaction through Improved Demand Fulfillment and Presenting an Optimal Pattern

Document Type : Research Paper

Authors

1 MSc., Department of Business Management, Faculty of Material and Industrial Engineering, Semnan University, Semnan, Iran.

2 Ph.D., Department of GIS, Faculty of Geodesy and Geomatics Engineering, K. N. Toosi University of Technology, Tehran, Iran.

3 Assistant Prof., Department of Industrial Engineering, Faculty of Engineering, Semnan University, Semnan, Iran.

4 Ph.D., Department of Business Management, Shahr-e-Qods Branch, Faculty of Humanities, Islamic Azad University, Shahr-e-Qods, Iran.

Abstract

Objective
The competition level among banks and financial institutions in Iran is notably intense. Success demands a novel approach to differentiate itself from competitors and effectively address the current challenges posed by competition. This study aims to formulate a Blue Ocean Strategy model in the banking industry for enhanced customer demand fulfillment, employing a strategy canvas and a four-action framework. Additionally, it endeavors to achieve an optimal pattern through the utilization of optimization techniques.
 
Methodology
The present study adopts a quantitative approach in both data collection and research methodology. Conducted in an exploratory manner, the research is characterized by a practical orientation and a comparative approach. The statistical population consists of five managers and experts in the field of banking, who were selected using the available sampling method. First, to extract the main areas of increase, decrease, creation, and elimination in the four-action framework, interviews were conducted with experts. Then, the importance and prioritization of customers' needs and the relative cost of implementing these measures were determined using the BWM method. These actions were divided into human resources, organizational communication, performance evaluation, public relations, advertisement, organizational processes and structures, and placement and architecture. Finally, using the backpack model and weights derived from the BWM method at different levels of the organization's budget, the corresponding measures were selected.
 
Findings
The results showed that providing facilities such as customer clubs in the form of loans, health insurance, etc., and designing innovative and up-to-date advertising campaigns, are the most significant needs of customers. Improving the employees’ professional skills and designing a beautiful and elegant interior environment for banks are the least significant needs of customers. Comparing the final weight of customers’ actions showed that preventing corruption and rent-seeking as well as promoting customer awareness and creating customer club networks are the most important actions related to customer needs. Maintaining physical banking communications alongside virtual communications and limiting the scope of bank activity on specific fields are the least important actions related to customer needs. Comparing the final relative cost of actions related to customers’ needs showed that, creating loyal customer clubs and providing short-term facilities services, such as household baskets, sports credit cards, installment purchases, supplementary medical insurance, and expensive architecture of branches, have the highest relative cost. In addition, strengthening the sense of responsibility and responsiveness of employees as well as strengthening horizontal and vertical communications to expand work commitment in the banking system have the lowest relative cost among actions related to customer needs.
Conclusion
Applying the backpack model, the cost savings resulting from decrease and elimination measures were used to implement incremental and creative measures. To carry out more incremental and creative actions, this process should be implemented as a five-year strategy.

Keywords

Main Subjects

References

 
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Journal of Business Management
Volume 16, Issue 1
2024
Pages 87-113

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