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United Commercial Bank & El Banco
United Commercial Bank & El Banco
GROUP 6
Introduction to the Case
● The strategic service vision entails four pillars, which consist of target
market segment, service concept, operating strategy, and service
delivery system.
● In essence, the pillars are utilized to improve or modify current services.
● The first pillar, target market segment is essentially the discovery stage.
● The point of this stage is to determine whom the company is serving
and to whose needs their product needs to be tailored.
● Some contributing factors in determining the target include
demographics, psychographics, and other important characteristics.
Introduction to the Case
● In the case of United Commercial Bank, their main target market is clear, the
Chinese American community, which is focused on financial stability and soundness.
● The bank’s mission statement even attempts to attract customers by stating that the
company’s ultimate goal is to aid families and businesses in achieving their
American Dream.
● On the other hand, El Banco de Nuestra Comunidad focuses on luring in Hispanic
clients.
● Some competitors that UCB faces in the Asian community are East West Bancorp,
Nara Bancorp, Cathay General Bancorp, and Wilshire Bancorp.
Introduction to the Case
● As previously mentioned, the Chinese American community is very focused on
financial stability.
● In order to defeat their competition, the UCB attempts to meet their standards by
offering savings accounts and CDs with high rates, attractive business loans for real
estate transactions, and features to facilitate import and export businesses, which are
common among Asian Americans, and low and sometimes refundable bank fee that
keep the customers coming back.
● On the contrary, El Banco relies on bank transaction fees as a source of revenue.
● The third pillar is the operating strategy. This factor focuses on the structure and order
of the company.
Compare and contrast the strategic vision of El Banco
and United Commercial Bank.
Service Delivery Operating Strategy Service Target Market
System Concept Segments
United Commercial Low fees, Import- Chinese spoken, Lowering interest rate
Bank export services Soundness and on CDs
safety
What are the differentiating features of banks that target
ethnic communities?