(20 points) Goldman Sachs, a global financial services giant, known widely for i
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Question
(20 points) Goldman Sachs, a global financial services giant, known widely for its role as a market maker, and for its leadership in asset management, mergers and acquisitions, securities underwriting, private equity funds, and multinational finance, has entered the consumer banking industry through an online bank, named for founder Marcus Goldman. Marcus has already made $3.5 billion in loans and has added over $8 billion in online deposits. Marcus’ website discloses the online bank’s major concern (at least initially) is restructuring overwhelming consumer credit card debt into manageable personal loans.
“We listened to 10,000 people tell us about their experiences with debt. When people tried paying off their expenses using credit cards, they often got stuck in an endless cycle of high interest rates and fees. Debt happens—and it can happen to anyone. A loan from Marcus can help you better manage it.”
As a GBA 490 student familiar with the Value Proposition, identify the generic Go-to-Market strategies firms may implore and identify the strategy best fitted for Goldman Sachs’ consumer banking service, Marcus, noting key target groups and drivers.
Explanation / Answer
The main strategy that Goldman Sachs may pursue for its online banking is to use its brand recognition in the market. This will allow the bank to use synergies where it capitalizes on its existing brand image in the market. This will help control promotional expenses. Further, the bank may also use its existing infrastructure for promoting its new business. The target group for the bank is high networth individuals. It is also going to target people who have issues with their debt management. The main driver for the company will be the consumers with debt issues.
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