Case # 3

1. What have been the key success factors for HSBC?
Ans. HSBC was established in 1865 to finance the growing trade between China and UK. Being an early starter to penetrate into this geography, HSBC was able to fully utilize the untapped business potential available and thereby capture a huge chunk of the market.

Despite growing in almost 80 countries al over the world, HSBC has been successful in positioning itself in 'World's local bank'. As the bank constantly works hard to maintain a local feel and local knowledge, customers feel comfortable to bank with an international brand like HSBC.Consequently it has ensured high customer loyalty and HSBC has been able to retain its large customer pool.

Another key factor of success is the ability of HSBC to reach a large section of customers by different innovative promotional campaigns. Moreover discounts, rebates, relaxing of interest rates on loan during crisis etc. has helped to gain popularity as well as confidence among its customers.

HSBC also keeps a strong focus on the services that it offers to the customers. It offers personal banking services, consumer finance, commercial banking, corporate investment banking and market, private banking etc among 100 million customers spread all over the world in a very professional and efficient way .This has helped to boost up the confidence level of the customers to a great extent. Also its professional attitude towards understanding the different hitherto untapped segments like niche marketing or targeting a specific demographic segment has led to its success story.

2. Where is HSBC vulnerable? What should it watch out for?
Ans. The vulnerability of HSBC lies in its business model. It has expanded into a true international bank starting from a small unit in UK with its vision as 'World's local bank' by providing the customers local touch and