Bank of America: Intelligent Portfolio. Business Model and Strategy Planning

Bank of America: Intelligent Portfolio
Business model and strategy planning
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Background
Bank of America is a banking and financial holding institution serving small and medium sized businesses, corporations, individuals and governments while offering diverse financial services, investment, risk management, asset management as well as banking services. It also provides nonbank services through the non bank subsidiaries (Bank of America, 2015). The main segments of the bank are the Consumer & Business Banking, Consumer Real Estate Services, which Global Wealth & Investment Management, Global Banking, as well as Global Markets (Bank of America, 2015). Companies need to change with time for their business models to be more successful as there is diminished performance when they are misaligned with driving forces of the markets. The innovative business models can also offer a range of value propositions that allow a company to be more competitive. Bank of America proposes to have Intelligent Portfolio as a new product to meet the needs of clients in a knowledge-based economy.
New Product: Intelligent Portfolio
The new mission statement is “To provide financial service at low costs while empowering employees and shareholders to achieve the desired financial outcomes.” The new intelligent portfolio is necessary to build more value for the clients at low costs, where various asset calluses will be aggregated to diversify risk and guarantee returns. This includes the use of insured cash allocation, while allowing the clients to place low amounts of $ 5,000. To achieve the intended financial objectives clients will be questioned about their investment preference, goals as well as risk tolerance. This is necessary to tweak the portfolio incases where the market dynamics change (Neal, 2015). The success of investments depends on the market performance, but sound money management practice, investment advice and low costs also make a difference and these are controllable.
An online platform allows client to interact with the advisors and this makes it easier to communicate where they cannot easily access the bank’s offices. To differentiate the product from others, clients create their own accounts where they can access information on new developments about their investments on request. The main barriers to investment are high fee costs and complexities in investment that make it difficult to interact with investment advisors (World Market Intelligence News, 2015). The availability of the service 24/7 makes it a viable option for even new investors who do not know how to get started since there is a process. Diversifying the investments is based on the changing market data and information is crucial to limiting losses where there are unanticipated risks in some asset classes.
Addressing customer needs to achieve competitive advantage
To achieve competitive advantages, companies normally rely on product differentiation, superior customer service and operational efficiency (DuBrin, 2012). To address the customer needs the online surveys of the intelligent portfolio are customized to be consistent with customer requirements, market change and risk tolerance...