- Published: September 18, 2022
- Updated: September 18, 2022
- University / College: Arizona State University
- Language: English
- Downloads: 48
In the case study, one of BBVA Compass strength is that in September 2010, BBVA Group signed a multiyear sponsorship deal with the National Basketball Association (NBA) that would make it the official bank for the NBA, WNBA, and the NBA Development League in the U. S., Spain, and Puerto Rico. They already have strong commitment to sport and this deal would be very effective as their target customer are from 25-50 year old (sport lovers).
Another strength is that they have been able to keep the cost per application below $100 in most of their campaigns. This can be really useful especially when they have limited marketing budget
Weakness
One of the weakness is while they have very good presence in international market, they have relatively low brand awareness in USA. And in time of financial crisis, this can hit them severely .
Another area of weakness is that limited marketing budget compared to established banks in USA. Competitor’s budget is almost 300 times more than BBVA.
Opportunities.
Their size position them in between large bank and credit unions. This enables them to offer personalized banking solution while maintaining economies of scale. They are small enough to offer customized solutions while big enough to offer breakthrough innovations.
Another Opportunity is that they are focusing on niche market and particular geographical segment-Sunbelt region. As big bank will focus their energy, time and resources throughout the nation , BBVA can slip in and become leader in this region and market segment. Then they can disrupt the market from bottom instead of going head to head.
Threats
Their competitors are large established banks and if they decide to enter in BBVA’s target market then they enough have money and resource power to win.
The financial crisis had fueled growth in consumer savings rates as consumers reined in spending and banks fought fiercely for deposits to meet funding needs and increase wallet share. So first of, all banks will be fighting fiercely and secondly due to crisis, consumer may want to go with established brand than an upcoming brand.
