Case – Commerce Bank Harvard Case Solution & Analysis

Case – Commerce Bank Case Solution

How does the organization seek to compete and provide value to its customers?

            Commerce bank competes on providing low interest rates to the customers and consistently focuses on improving the quality of service provided by the bank to its customer base. 24/7 customer service is the common example of customer satisfaction initiative taken by the bank. It allows the customer base to call and clear their queries at any time regarding their bank accounts and any related issues. Although the interest rates provided by the bank to its depositor base are low however,the services provided by the bank to its customer are different from any other bank. The innovative system has been implemented to make the operation better than before and to continuously improve so as to improve the position of commerce bank in the banking industry. Some of the factors are given below, which would lead the bank to get a better status in the eyes of the customer base.


            Commerce bank maintains strong ethical standards within the company and it is usually when providing services to its customers. This mainly includes the bank’s representatives to create awareness among the depositors regarding any hidden cost, policy terms and condition before they become the customers of the commerce bank so that the confidence will increase on the bank.

Focus on Customers:

            Other banks focus on the profits generating activities and execute that strategy, which provides revenue to the bank. Commerce bank uses an entirely different strategy as it focuses on the expectations and demands of the depositors as well as the creditors, which in turns provides revenues and profits as well.

Fully Trained Staff:

            Commerce bank has been successful in recruiting competent and qualified staff, which would increase the customers’ confidence on the bank as the staff would provide better service to the customers. Creditors require low interest rate and depositors require higher interest rates, therefore staff will provide a better plan of loan and deposit so that the overall objective of the company will be achieved.

Security of the Accounts:

            Customers require safety of their deposits in the bank accounts. Many other banks’ managers manipulate the depositors’ fund in their personnel interest while in the case of commerce bank, the bank maintains strict rules and regulations,which reduces the control of the managers on the depositors’ account so that misappropriation of assets will eliminated.

Innovation Products and Policies:

            Commerce bank should seek the opportunity of new and innovative products, which would provide better fulfillment of the customers’ needs. Those policies have been adopted by the bank, which are different from the conventional banking industry. New packages and offers should be provided by the bank to its depositors. The example of new plan for depositor includes creating balanced funds and communicating the depositor regarding the advantages of depositing in the equity balanced fund etc.

What are the attributes of the customer value proposition that the company is competing on in order to create value to its customers?

Some main attributes of customer value proposition, which create value for the customers of commerce bank are as follows:

Better rates:

            Depositors as well as creditors seek the opportunities of those banks that provide better interest rates to them. The customers are attracted towards the banks that pay higher interest to them which is not the case at Commerce Bank as the bank uses the policy of lower interest rate to the depositors and provides higher quality of service to enhance the customers’ confidence. This strategy will not be beneficial in the long term because lenders want lower interest rate so that the cost of capital will be lower. Commerce bank should provide lower interest rate to the creditors as well as it should seek ways of reducing its operating cost, which, in turn, will increase customers base, which would result in increased profits..................

This is just a sample partial case solution. Please place the order on the website to order your own originally done case solution.

Share This


Save Up To




Register now and save up to 30%.