Capitec

Strategic Management

Case – Capitec

Hamilton Ndlovu

Student Number 589451

Mr Thabo Mosala

08/05/2013

Contents Page

Business Model………………………………………………………………..3

Should Capitec change its approach?............................................................4

How are mobile payments shaping the banking industry?...........................4

Mobile operators………………………………………………………...........5

References …………………………………………………………………….7

Capitec

Business Model

The article states that the Capitec management team decided to focus on providing low-cost basic banking services to the lower-to middle income market, and not to create a bank that offered everything to everybody. Capitec adopted a 4 stream strategy – affordability, accessibility and simplicity.

a. affordability – its main objective was to “slash by half the banking fees of competitors”

b. accessibility – almost 290 branches around the country

c. Simplicity- simplified and focused product range, which allowed to an almost completely paperless environment.

d. Personal service – high trained and skilled staff

A business model consists of 4 interlocking elements that taken together create and deliver value

i. CVP- Capitec’s cvp is to create value for customers. They did this by making the banking products affordable and simple.

ii. Profit formula – it believed in low price and high volume which would constitute its revenue model. It used existing debit card infrastructure which saved costs.

iii. Key resources – they used modern technology to help speed up the process of opening bank accounts.

iv. Key processes – the use of photographs, , fingerprints and simple banking procedures enabled Capitec to simplify their whole process.

Capitec’s...