Declining profits do not necessarily reflect an unsuccessful compay; sometimes the company just needs a new image. Take for instance, NovaRede, this company started off good by introducing the concept of “chain retail banks, consistent customer service, and innovative products,” but they needed more to reach their full potential. After an evaluation of their customers, NovaRede recognized many of them were only set up for one of their services; the remainder of the services were thru competitors. To turn this around, NovaRede began to focus their operation to appeal to customers on a higher level; by implementing an “advanced ATM technology, an innovative branch layout, incentives for employees to help customers make transactions at machines, and incentives for customers.” This strategy of expanding the business worked and NovaRede’s profits began to rise.
Many companies today also use this approach, especially banks. Bank of America offers all the services you would want from a bank; checking, savings, online banking, loans, mortgages, credit cards (with incentives.) The incentives offered include credit cards that offer cash back, airline miles, hotel points; low interest rates on loans and mortgages, etc. These incentives make it appealing and convenient for customer to get all their banking needs in one place.