ING Direct: Redefining Direct Banking

Published 26 Nov 2002
Reference 5074
Topic Strategy
Region Global
Summary

ING Direct's strategy of focussing on simple products, low cost operations, aggressive pricing and advertising, has enabled it to be highly successful and profitable even though its flagship product the savings account is a low margin product. The case explores how ING Direct's strategy has enabled it to achieve its successful market position. The teaching objectives for this case are to illustrate how companies can successfully enter 'mature markets' and still succeed in carving out a successful position to achieve profitability. The case also illustrates how a corporate can be successful by maintaining consistency between its strategy and operations.

Teaching objectives

The teaching objectives for this case are to illustrate how companies can successfully enter 'mature markets' and still succeed in carving out a successful position to achieve profitability. The case also illustrates how a corporate can be successful by maintaining consistency between its strategy and operations.

Keywords
  • Direct banking
  • Focussed strategy
  • Product innovation
  • Low cost operation
  • On-line banking
  • Internet banking
  • Strategic management of banks
  • Strategic banking
  • ING direct
  • Dick Harryvan.
    AR2002
  • AR0203
  • RD1102