The paper "Marketing of Hong Kong and Shanghai Bank Corporation" is a wonderful example of an assignment on marketing. Hong Kong and Shanghai Bank Corporation (HSBC) has for some time now positioned itself as the world’ s local bank. Established in 1865, the bank has grown to become the second-largest bank globally. A key factor leading to its success has been its fundamental operating strategy of remaining close to its customers. HSBC provides a variety of financial services to its customers while approaching each country uniquely blending local knowledge with a worldwide operating platform.
The positioning is creative and compelling as every business and individual customers desire to be associated with HSBC as they feel that the bank gives them a variety of sophisticated global benefits to them right where they are Jackeline. Jackline (2005), states that the bank’ s adverts depicting its world’ s local bank positioning are always strategically placed for everyone to see. However, despite the fact that HSBC’ s positioning is quite beneficial to the bank, it also exposes the bank to a number of risks which it should endeavor to minimize.
The risks and benefits are explained below; Risks HSBC’ S positioning itself as the world’ s local bank despite being beneficial exposes to a number of risks. As a world’ s local bank, customers expect the bank to offer them superior quality and sophisticated services that are of a world-class right at their doorstep. Therefore, the bank’ s offering to its numerous customers should be nothing short of this. As the world’ s local bank, customers also expect the bank to give them services with a personal touch (Albaum, Strandskov, Duerr and Dowd, 1994).
The positioning of the bank as a world’ s local bank, therefore, exposes the bank to the risk of losing a lot of customers to its customers if they feel that the bank is not offering them world-class services it claims to provide. This is because the customer's trust in the bank will have been betrayed. As such, the bank should always ensure that it employs and trains high-quality employees who will deliver the world-class services expected by the customers. This is in addition to investing heavily in research and development so that customers will always see it as the world's local bank it has positioned itself to be. Being a multinational bank, HSBC operates in a multicultural environment.
As such, the bank has to deal with people of different cultures every day. Just like technology, culture is also dynamic. According to Etienne (2009), for the bank to remain the local bank it has positioned itself to be, it must always understand all the different cultures in its areas of operation so as to offer services that reverberate with the different cultures.
As such, there is a great risk that the bank will be unable to understand the different cultures and hence offers services that differ from various cultural requirements.