Case study for Wingspanbank.com. Essay Example

Case study for Wingspanbank.com. Paper Wingspanbank. com was launched on June 24, 1999. It was a freestanding Internet bank under the auspices of the First USA division of Bank One. It was an Internet-only bank that marketed itself with the claim, If your bank could start over, this is what it would be.? Created in a record four months and launched with a huge advertising campaign in year 1999, Wingspan provided one-stop shopping for financial services. At first glance Wingspanbank appeared to be a hugely successful startup, and in a way, it was because it had met virtually all of its goals and led the industry. However, the First USA division had performed poorly since then, it suffered $70 billion in outstanding receivables and shares of Bank One had fallen more than 40 percent since May 1999. Finally, Wingspanbank was downgraded to be a test lab because it didnt attract enough customers? Bank One officials said in September 2000. But was Wingspan, a standalone Internet bank, a flawed business model or a good idea doomed by circumstance? The answer may be both. Internet pure plays dont have staying power, especially in banking. Pure online banks are beginning to look like failed dreams,? said a report issued by Newton, MA-based Meridien Research. However, the bad management in Wingspanbank also contributed to its failure. The internal problems included the direct competition between Wingspanbank and its parent company ? Bank One, frequent system failure, huge marketing campaign, the lack of planning, and the ongoing management turmoil within its parent company. The problem Wingspanbank faced was it should find option(s) that it should adopt to be a valid strategic model to stay in business, to solve the problem of management, to take full advantage from its opportunities to attract and retain customers. We will write a custom essay sample on Case study for Wingspanbank.com. specifically for you for only $16.38 $13.9/page Order now We will write a custom essay sample on Case study for Wingspanbank.com. specifically for you FOR ONLY $16.38 $13.9/page Hire Writer We will write a custom essay sample on Case study for Wingspanbank.com. specifically for you FOR ONLY $16.38 $13.9/page Hire Writer In the analysis, in-depth insight will be given to examine the situation of Wingspanbank and recommendation will be given to Wingspanbank or Bank One in order to improve the situation of the business. 2. 0: Analysis and Evaluation 2. 1: Review the Big Picture In the late 1990s, the United States and the rest of the world were experiencing the longest economic expansion in the history. The years 1994-2000 witnessed solid increases in real output, low inflation rates, and a drop in unemployment to below 5%. In year 1999, unemployment rate in the US was 4. 2%, the lowest one in these years. At the same time, the widely use of personal computer and the explosion of the Internet brought more and more people to the Net and made them feel more and more comfortable with e-commerce. People were doing more and more business on the Internet. The development of Internet technology was a result of the development of computer hardware and software. The increase in employment changed the consumers? life style to be seeking convenience and simplicity because they had less time to shop and handle the routine banking transaction. Therefore, the environment was friendly, especially for the Internet-related industries. 2. 2: Industry Analysis Online financial service industry characteristics: The online financial service industry began its climb in the mid-1990. At the time when Wingspanbank was launched, the industry was in the growth stage in its life cycle with a rapid speed. By November 1999, there were more than 500 online banks, and another 1000 were predicted to launch in year 2000. Moreover, in 1998, the number of households using online banking nearly doubled to 7 million. There are two typical models of online financial service: the first one is the combination of bricks? (a physical location) and clicks? (a Website). The primary purpose of the website is to retain existing customers and provide information about retail products at brick-and-mortar locations. In this model, the traditional bank provides many leverage in developing Internet products. The second one is pure-play Internet banking? which provids one-stop shopping for financial services with great convenience and low price and higher interest rate. Key Success Factors The key success factors in this industry include all of the following: the primary key success factor is security issue with the trust and concern of privacy. To have a strong position in banking, especially online banking industry, brand name and reputation play an important role. To satisfy customers, a wide selection of service with good quality is absolutely necessary. And having a web-presence, the design of the website and the speed of access are important to attract and retain visitors. At the same time, convenience and simplicity of processing are very critical because those are what online customers are looking for. Industry Driving Force The online financial service industry is a technology driven industry. The development of the Internet technology determines the processing of online banking service and the speed of access and design of the site as well as the convenience and simplicity that a site can provide to its visitors. The legal issue associated with the security concern is also a driving force because of the concern of consumer privacy. Government regulation is also playing an important role, for example, the Federal government further spurred competition with the repeal of the Glass-Steagall Act, removing barriers among banks, brokerages, and insurance companies. Characteristics of Customers Being a service industry, to address the characteristics of customers is very important. In the online banking industry, consumers? main concern is trustworthiness followed closely by price. Because Internet-only banks have lower overhead costs, they can pass saving on to consumers, and because transactions are electronic, they can be done faster and provide great convenience to customers. However, as trust and safety are concerned, consumers want a proven brand and/or local presence in addition to the low cost, convenience and speed of online sales and service. 2. 3 Industry Analysis at Micro Level Threat of new entrants The threat of new entrants of the online financial service industry is moderate. First of all, a recognized brand name and reputation are required to attract customers. Secondly, security issue is another barrier to entry because of the associated legal issue and government regulation. For example, Yahoo and AOLs face a barrier to entry in being unable to secure charters. Moreover, the heavy marketing expense required to market a website also create a high barrier to entry. However, the wide availability of web technology reduces the barrier. Rivalry among existing competitors As addressed earlier, by November 1999, there were more than 500 online banks and another 1000 were predicted to launch in year 2000. Besides Bank One, other giant banks such as Citibank, American Express were planning to launch their Internet-only divisions. Online customers are easily switch from this site to others; therefore the low switching cost increases rivalry among competitors. Threat of substitutes The substitutes of online banking include all of the following: traditional banking, phone banking, wireless banking and financial service providers. With traditional banking, there are brick-and-mortar locations for customers to handle routine banking transactions. A consumer survey, conducted by Newton, MA-based TowerGroup, drives home the point: more than half of consumers surveyed (51%) still prefer to handle transactions at traditional bank branch. Phone banking is a way by which customers can handle transaction by phoning an automotive response system or a service representative. Wireless banking is growing with the use of wireless device such as mobile phones and PDAs. The wireless service providers offer trading and related account services to their customers. Other financial information service providers are also taking customers from online banks. Therefore, the threat of substitutes is relatively high.

LearningGoal For --Paragraph Essay

LearningGoal For --Paragraph EssayWhen you are looking for a sample learning goal for --paragraph essay, it is best to look at samples that do not require you to do a lot of research. These can also help you to see what a sample goal looks like before you actually try to write one. The best way to find a sample learning goal for --paragraph essay is to look at those that have been written by someone else. Sometimes the person who wrote the sample goal came up with the idea and wrote it down, but many times they wrote it simply as a piece of information to work from.When you take the time to read a sample, it is best to know what type of sentence constructs they are using. You should look for sentences that begin with questions or statements, but do not always have answers that are clearly stated. It is important to know whether the writer wants you to know that there is a particular type of fact, such as 'the sun rises in the east,' or if the writer is simply trying to elicit a thoug ht or emotion. The sentences should also have verbs or other regular parts, but they should not be in the main body of the text.The second part of this sentence construct is important because it helps to determine whether you are being asked to think or express yourself. The most common problem with writing a paragraph essay is that people are asking you to express yourself in your thinking. While the word 'express' may make you think that you have to think a certain way in order to write an essay, that is not the case. It is very important that you do not force the action of a sentence. This is called breaking the grammar rules and is the most common error in paragraph essays.If you write a sentence with an opening question, you should answer it in the first sentence. This makes it much easier to stick to the rules. This also puts your attention on the actual topic of the paragraph instead of a question being asked again.When you are beginning to write a paragraph, take some time t o make sure that you write without writing or thinking about the topic. Remember that the paragraph will contain a question, so it is best to focus on the question instead of the answer. This makes it much easier to write a paragraph. It also allows you to create a really interesting paragraph that you can share with others.There are two types of paragraphs in the language of writing. The first is the main body of the paragraph and the second is the introduction. When writing a paragraph, it is very important to make sure that the main body of the paragraph contains a question, but it must not be a list of facts that you know. The most common problem with writing a paragraph is that it is supposed to have a specific topic and it is instead filled with a series of facts that you can find in any book or encyclopedia.Remember that there is no such thing as a simple or easy grammatical problem. It is best to research a little about the topic before you attempt to solve it. The purpose o f a paragraph is to present facts and it is important that you use sentences that are grammatically correct. Many times you can use a format in which the beginning of the paragraph is obviously filled with facts that are needed for that paragraph and then the rest of the paragraph is a question.Finally, remember that a paragraph should never be too long. It is important that you keep it short and to the point. A paragraph should only last one to two sentences and should not be more than two lines. A good rule of thumb is that the paragraph is short enough that you can move on to the next line, but long enough that you can look at it in the future when you need a similar question to help you in a future paragraph.