1.Capitec Strategy was to keep the original building blocks of affordability, accessibility, personal service and simplicity. The resource drivers and capabilities for Capitec were the following:
Labour: Capitec grew its staff headcount by over 2000 by 2006. This was achieved by closing down branches that were located in “some what sleazy locations and run by less desirable personnel to with 75% branches closed down or relocated to better surroundings and transformed the organisation into a more formalised structure. Capitec also realised that if clients were less informed on banking, the more support was required. In an effort to connect with Capitec customers in the client’s home language, Capitec recruited staff from the areas surrounding its branches and trained the required skill. This would yield competitive advantage by providing the access to important market areas while making a significant contribution to the perceived customer benefits.
Technology: Capitec identified the key needs such as price, real-time delivery, and simplicity through paperless card driven processing and changed consumer perceptions that banks were expensive and slow. Technology was used to keep down costs by cutting out paper work and the administrative activity associated with it and saved significantly on these expenses. The alliance with Checkers and Pick Pay encouraged customers to perform cash withdrawals at point of sales terminal costs of R0.75 and clients were able to check their balances as it appeared automatically on the screen at no cost. This encouraged debit card use and lowered the security costs for Capitec. Capitec also launched mobile banking with a sales force that would open accounts for customers at their workplace. Within minutes the 3G technology a client would have access to an account and a debit card. The bank had future plans of Internet and cell phone banking intending to exploit the use of technology to support their aim. The bank utilised fingerprint identification and took photographs for a quick and efficient and simpler process.
Supplies: With the traditional banks having high costs, Capitec concentrated on the LSM3-7 and the later the LSM 8 to offer practical solutions to the everyday challenges of its clients. Capitec almost 290 branches were located in places where people commuted worked and shopped. The banks hours were catered to accommodate clients on their way to or from work.
Knowledge: The chairman of PSG Financial Group persuaded the former head of NBS Bolan Bank to join PSG. During this process CEO of Capitec was met and the idea of a bank with micro lending capabilities serving the lower income was born.
2.” Lower costs and differentiation are important themes in a competitive strategy which relate both awareness to of consumer needs and the management of resources to satisfy these needs effectively and, where relevant, profitability.” Capitec can utilise the current Strategic Resources to respond to the demands of the customers. With having Economies of Scale for the LSM3-7 and LSM8 market, Capitec can create a database of clients that minimise the credit risk. With this research Capitec can look at a detailed plan in ensuring their commitment of affordability, accessibility, personal service and simplicity to an expansion of more products to retain their clients.