Strategies framework; cost leadership and differentiation
Cost leadership as employed by Green sky in helping subcontractor firms to gain benefits.
The approach proposed by Green sky of making it easier to access loans for home improvement by families is well worked out and viable. He employs a system that evaluates contractors before awarding them any works. Once a contractor has been approved, they are taken through rigorous training on loans so that contractors can interact with customers professionally. This saves the company extra costs that come with hiring separate loans sales personnel. Additionally, strong bonds are built between customers and customers, and thus it is easy for customers to improve their homes. This is facilitated by the fact that customers get the loan facilities by themselves, and then pay contractors to start works. It is through green sky’s approach whose turnaround is timely enough to allow customers to know the use of their loans before they acquire it.
Differentiation as employed by Green sky in helping lender firms to gain benefits.
Using Green sky’s approach, lenders are in a position to closely engage customers seeking to patronize their services to finance their projects. Lenders can save largely through the use of subcontractors through reduction of the cost incurred from hiring and training marketers since the contractors already know. Time is also saved as customers get their projects done faster since they get loan and contractors as a single package. Earnings by the contractor are increased by earning both as the lender and contractor.
Analysis of green sky approach to Blue Ocean for own use employing the four actions.
Reduce
It is easier to get customers courtesy of Green sky due to the adoption of contractors rather than salespeople. Subcontractors reduce the cost of marketing and training salespeople as well to promote their loan services.
Eliminate
The work of salespeople is effectively removed, and their place is given to subcontractors at no extra cost. In fact, the people training these subcontractors are key players and owners of the program, making it more complete and convenient.
Create
Through Green sky, there is the creation of a solution to the lending problems. Traditionally, people seeking loan facilities are faced with a load of challenges in getting the correct lending partner and fair rates. This is solved by training subcontractors on the techniques of guiding customers as well as the creation of different methods of loan repayment.
Raise
The method of conducting business among different players is changed by Green sky’s approach. While looking for a loan facility, contractors have been trained to identify these customers and handle them professionally. A relationship is therefore built between the customer and these customers and a seamless mechanism of getting these facilities rolled iut to them.