United Commercial Bank and El Banco Essay

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Question 1: Compare and contrast the strategic service vision of United Commercial Bank and El Banco. The strategic service vision entails four pillars, which consist of target market segment, service concept, operating strategy, and service delivery system. In essence, the pillars are utilized to improve or modify current services. The first pillar, target market segment is essentially the discovery stage. The point of this stage is to determine whom the company is serving and to whose needs their product needs to be tailored. Some contributing factors in determining the target include demographics, psychographics, and other important characteristics. In the case of United Commercial Bank, their main target market is clear, the …show more content…

By comparing themselves to Western Union, El Banco attracts customers to come to their bank and cash checks in their establishment even if they do not have an account with them. By charging people with a 1.5% cashing fee, El Banco makes a third of their revenue. In addition, once they have the customer, they are able to offer more features such as a mortgage for undocumented workers, based on their taxpayer identification, credit cards, financing, and savings accounts. The third pillar is the operating strategy. This factor focuses on the structure and order of the company. The United Commercial Bank is strategically located in predominantly Chinese American neighborhoods, as well as Hong Kong, Taiwan, and China. By employing Chinese speaking employees, UCB is able to maintain a strong flow of business and communication with their customers. In addition, whenever a client opens either a checking or savings account, they are rewarded with a tea caddy or gift tea sets to further accentuate the culture. On the other hand, although El Banco is located only in Georgia, they do employ a similar strategy in terms of structure. They too are culturally homogenous, by focusing on their Hispanic constituents and employing Spanish speaking workers. Two vast differences in their structure is that El Banco is informal in their overall appearance and their business structure is a franchise company. Lastly, the fourth pillar is service delivery system. This pillar

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