Value Creation in the Banking Industry - A comparative case study of how value is proposed by two Swedish banks from a S-D logic perspective
Abstract: This study examines how two banks with different digital strategies and customer interactionapproaches propose value propositions. Digitalization is reshaping industrial fundamentals aswell as leading to changes in the value proposition of companies’ business models. This isforcing businesses to clearly articulate the value proposition to stay competitive in the marketand to understand how the value proposition is used in the co-creation of value together withcustomers. Service innovation is further used by organizations to improve their current valueproposition. In addition, previous studies have argued that more research is needed to clarifythe value proposition structure and management of service innovation, as well as to apply theS-D logic perspective on the retail banking industry.The purpose of this study has been to analyse how value is proposed by banks through thecomparison of one Traditional bank and one Digital bank. The thesis examines what the maincomponents are in the banks’ respective value propositions, and identifies differences andsimilarities. Furthermore, the thesis also examines how the two banks manage serviceinnovation in order to develop their value proposition. In this qualitative study, the chosenmethodology was a multiple case study with a comparison between banks within the Swedishbanking industry, from an organizational perspective. Primary data has been collectedthrough seven semi-structured interviews with selected executives in the two case companies.Conclusively, the main contribution is argued to consist of a clarification of how valuepropositions are structured in the banking industry, together with the insight that there is nouniform approach towards either the creation of a value propositions nor the management ofservice innovation. Thus, this result is argued to extend previous literature about the S-Dlogic view.
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