The director of online services development team for Theories Bank, Jonas Hoot was tasked to develop a free and downloaded mobile app of Thorniness, which is a personal finance analytics tools developed by the bank. Given the resources can be only used to build for one mobile platform first, she was considering between Android and ISO. The analysis below is focused on the decision, the reason and also the application for the particular platform. The Decision Giving the short timeshare and limited resources, Thorniness should go for an easier platform, which is Android first. Sing this less entering barrier platform, the bank management can always fix the problems and improve the app to be able to pass the Apple review process In future time. The Reason Easier implementation and management Android positioned itself as the “open” alternative to Apple’s tightly controlled distribution channel, making the management able to build the app on Android more easily In the short timeshare. For Instance, Android gives phone manufacturers a complete operating system that they could utilize and customize without paying a sensing fee.
This would be a big advantage for company who wants to build an app on the platform. There is no review process to build an app on Android too. This make the company could interact with the platform more easily. Android applications could be distributed through other publishers too. Moreover, customers who want to use Thorniness are not limited to using mobile phone service with only one tells company, which is AT. All these advantages make Thorniness could be published in the 4 months time successfully.
Market growth and size The users of Android were growing rapidly and seemed likely to become the absolute alternatives to the Phone ecosystem. In fact, the Android devices had grown 886% year-over-year, making the market very lucrative. Furthermore, there is more than 60 compatible Android devices for sale in 48 countries by the summer of 2010. Network effect When the app builder wants more users to use their app, they should provide a attractive feature. Conversely, users favor an app with superior function. In this case,
Thorniness provide the finance analytics tools that make it differentiate from its competitors, either mobile application from other major banks or tools for consolidating Information from multiple financial Institutions. Thorniness makes customers information secured without going through a third party. Using Android as the platform, the management is able to control the app more easily and effectively problem or want to update the app. Consequently, the consumers will be attracted by the app thus the provider gain a large base of users. This is so called cross-side network effect.
The Implementation The implementation will be discussed by using “The Strategy Diamond”. Arenas and Vehicles Due to the successful launching of Thorniness online banking web application, the mobile app will further enhance the effect: attrition rate will drop and retention rate will be increased. The key successful factors might be the excellent function of the app and also choosing good platform like Android to reach out consumers. In order to using more platform, ISO in particular, the team can update and fix the horologists in the Android version before going through the Apple review process.
Eventually, Thorniness will be available on both platforms without wasting time and efforts. Differentiators By offering finance analytics tools, Thorniness stands out from competitors. To further differentiate itself, they could provide more personalized functions to increase the value from customers’ perspective. Stating and Pacing Like mentioned above, after the app on Android reaching stable stage, the team can consider to launch on Apple App Store. As Android has fewer restrictions, amendments can be made easily thus more effective.
When the Android version is being fixed and updated, Apple review process can be done in the same time. Economic Logics For a mobile application such as Thorniness, entry barriers are usually low. The market is full of competitions and it is not served by a signage platform. As a result, consumers are usually not willing to pay a premium because there is lack of preference between different APS. Thus, Theories Bank should not charge the app. Due to network effects, a successful platform will enjoy increasing returns to scale.
Consumers will be delighted if they could interact with the bank in an effective way, for instance the app. Eventually, more customers will become the loyal customers of the bank and thus they could gain more customers, and also grab more profits from them. Conclusion Being able to launch this app successfully, Thorn Bank can be more successful in terms of customer relationship. Moving forward, Thorniness can consider having exclusive affiliation of marquee users. This allows them to further creating good image in customers’ mind and differentiates itself from the competitors.