hbr case study

1. CASE PRESENTATION
ON
JYSKE BANK
SUBMITTED BY SIDHANT ANAND
YOGESH SINGLA
VENKAT BHANU PRAKASH JASTI

3. INTRODUCTION TO THE CASE
• The case talks about JYSKE BANK , which is the third largest bank in
Denmark and has been formed through the merger of 4 Danish
Banks, having their operations in Jutland .
• The case talks about JYSKE BANK being the market leader in customer
satisfaction through their model called JYSKE FORSKELLE, and the
practices they adopted to satisfy the customer to their best.

4. ABOUT JYSKE BANK
• The headquarters are located in Silkeborg, and has branches in
Denmark, France and Germany.
• Initially the bank, had a very typical Danish approach of being
prudent, conservative, well manager and generally unremarkable.
• The bank followed the traditional Danish approach , which was
commonly followed by the most Danish Banks.

5. • In the beginning of mid – 1990’s the bank led to a change in process ,
which was different from how the traditional Danish Banks used to
operate.
• The changes were called the JYSKE DIFFERENCES , which led to a
change in their focus from a product oriented bank to a customer
oriented bank.
• As a result of which, the bank became the market leader in
CUSTOMER SATISFACTION among all other Danish banks.

6. “JYSKE FORSKELLE” or “JYSKE
DIFFERENCES”
• Have common sense
• Be open and honest
• Be different and unpretentious
• Have genuine interest and equal respect for people
• Be efficient and persevering

7. SEGMENTATION, TARGETTING AND
POSITIONING (STP)
SEGMENTATION
TARGETTING
POSITIONING
• PRIVATE
BANKING,CORPORATE
BANKING AND
CONSUMER BANKING
• DANISH FAMILIES AND
SMALL –TO –
MEDIUM DANISH
COMPANIES
• POSITIONS ITSELF AS
A BANK WHICH
MAKES A DIFFERENCE
FOR THE CUSTOMER.

8. SWOT ANALYSIS
STRENGTHS
1. Nice Infrastructure.
2. Dedicated and trained employees.
3. Market leader in customer satisfaction.
4. Huge number of human resources.
WEAKNESSES
1. Presence only in Denmark.
2. Limited customer base – as they focus only on Danish families, and
Small- To – Medium sized Danish companies.

9. CONTINUED…
OPPORTUNITIES
1. Can expand to the international market.
2. Can increase their customer base by focusing on other segments of
people.
THREATS
1. High liquidity issues may arise in future , as they spend a lot of
money on infrastructural development.
2. E- commerce can be one of the biggest threats as it is changing the
focus of the customers from branch banking to online banking.

10. CASE QUESTIONS AND
ANSWERS

11. Q1. What
is Jyske Bank’s new positioning or competitive
differentiation strategy?
OUT OF THE BOX SERVICE
CUTTING EDGE
• Specific target segment and
targeting right segment to
customers.
• Small group of bankers for one
customer.
• Friendly and new pictures of
employees on the ID cards.
• Developing IT tools to help
customers in identify the problem
and provide them with appropriate
solutions.
• Not only the tools but, also the
employees who help the
customers with appropriate
solutions.
VALUE ADDITION AND
SERVICES
• Making time and caring about the
customers.
• Employee training in customer
service.
• Empowerment to employees
• Best infrastructure with facilities
like café’s.

12. Q2.What changes did the bank make to get to its new
position? What effect did these changes have?
TANGIBLE CHANGES
CHANGES IN ACCOUNTS
TEAMS
CHANGES IN BRANCH
DESIGN
One employee was
dedicated to one
customer. This made the
customer feel that he is
been given due
importance.
1. Small teams of
employees for providing
customer solution.
2. Cafe’s – Provides
homely environment.
3.Round Tables –
Portray's Equality.
4.Visible Screens –
Portray openness of
information with the
customer.

13. TANGIBLE CHANGES
DECENTRALISATION OF LOAN
PROCESS
TRAINING
The banks started providing
employees with trainings on
team building and customer
service
Initially, if a customer was to
apply for a loan, the entire
procedure used to take a
long time as the branch
manager used to write a
formal application and
forward the same to the
regional level for approval.
After the change in the
process the managers were
give credit training and were
also give the authority to
take decisions for loans
approval at the branch level
itself.

14. Q3.Analyse Jyske Bank’s success using the Service Quality
Gaps Model found in Chapter 2. What are Jyske Bank’s
strategies for closing the 5 gaps in the model?
CUSTOMER GAP:
EXPECTED
SERVICES
PERCEIVED
SERVICES
The customer gap was very less as the bank was able to provide is
customers with their superior services.
They had only targeted the premium customer’s to whom the price
did not matter.
As a result of which they were able to provide the customers high
quality services and were able to achieve minimum customer gap and
highly satisfied customers.

15. PROVIDER GAP:
• GAP 1: Listening Gap
The listening gap was very less, as with the introduction of the JYSKE
FORKSELLE, the bank had come out with IT tool to first figure out the
customer’s problem and expectations.
They had dedicated a team of 4 employees per customer to get a better
understanding of customer’s problems.
• GAP 2: Service Design and Standard Gap
The bank was successfully able to close this gap.
The bank provided its customer with the best in class service in terms of
the customer solutions and also provided customers with the best
infrastructure facilities to make them feel at home.

16. • GAP 3: The Service Performance gap
The bank was successfully able to retain its employees and provide them
with adequate trainings.
Bank was not only the leader in customer satisfaction but was also a leader
in employee satisfaction as well. The employees were provided with good
incentives and were kept happy so that they could work.
• GAP 4: Communication Gap:
The communication gap was very low.
The bank provided the customer’s with all the possible information that
the customer required and also provided the customer with all the
solutions.

17. Q4.In your opinion can Jyske Bank sustain its growth and
success? Would you invest in Jyske Bank?
• If they continues work with its Jyske Forskelle then it won’t be able to
sustain its growth and success
• According to this their market share in market won’t rise resulting in
no increase in profits thus not able to expand and will result to
decline in growth as Jyske Bank resulting had to close its three
branches
• London Branch (2008)
• Warsaw Branch (2007)
• Fuengirola Branch (2007)

18. • But if the Jyske bank makes changes in its strategies and focus on
more customers rather than selective customers then it can gain
more market share, more revenues.
• Previously they were also charging very high to customers so they
have to reduce that as in today’s scenario customer don’t prefer to
pay when competitor’s charges are low.

19. • No, I would not like to invest in Jyske Bank as Jyske Bank Share value
was 192.50 in2004 reached to highest 476 in 2007 but now it is
declining constantly reaching to 285 which is not a good symbol for a
company to invest in.