Marketing Spotlight on HSBC Case Study Example | Topics and Well Written Essays - 1250 words

Marketing Spotlight on HSBC - Case Study Example A deeper insight into this strategy reveals that the efforts are directed towards becoming the consumer's expert on cultural knowledge of the nation thus getting deep visibility into financial opportunities in the country hidden in the personality & motivation of the end consumers that is normally invisible to other outsiders (Montgomery. 2008). The localization model of HSBC is supported strongly by their global technology system called Hexagon Infrastructure having foundations laid way back in 1983 and subsequently key enhancements implemented in 1987, 1989, and 1994 (Peffers and Tuunainen. 1999). HSBC owns one of the most sophisticated & efficient banking transactions & customer service management systems of the world. As defined by Hamid and Amin et al. (2007), Internet Banking is a powerful mean of enhancing competitive advantages that should be informative, communicative & transactional as per the local customer needs. As reported by these researchers, HSBC is one of the few foreign banks that are able to compete effectively with the local banks at Malaysia & Thailand pertaining to Internet Banking. Also, this is the only bank in the world that offers secure ID tokens to the customers for Internet Banking (Goodwin. 2006). Another key success factor of HSBC is their focus on some specific customer needs through niche marketing like the example of pet insurance offering in the spotlight document. Lemon and Seiders (2007) presented another niche focus of HSBC servicing fund transfers for immigrants back into their respective countries through HSBC website. This service is specifically very popular in markets like Mexico and Philippines that are not core targets of many multinational banks. As a result of such offerings, HSBC customers perceive the bank to be socially responsible and innovative which adds to the brand equity of the organization. Sirkeci (2008) presented another niche positioning by HSBC whereby they target the needs of ethnic population of developed countries and offer customized products for them. To serve this segment, they have hired frontline staff from the target communities to ensure better customer friendliness. In nutshell the primary competitive advantages of localization competencies and ability to target niche segments has ensured the current global positioning of HSBC as such. Where is HSBC vulnerable and what should they watch for McDonald and Chernatony (2001) reported that while the competency of localization is evident very strongly in the parent brand, the same is not reflected adequately in promotion of individual products like Meridian, Vector, Orchard, etc. Moreover, the benefits of individual products of HSBC are not communicated adequately through product branding exercise. This leads to tight correlation of individual product lines with the parent brand thus risking the HSBC brand equity in a location due to failure of a product line. This is a serious vulnerability that HSBC should watch for. Another vulnerability HSBC might face is pertaining to their sheer size and the