Abstract

YES BANK (Yes Bank), one of the new generation private sector banks, was set up in India after reforms were introduced in the banking sector in the 1990s. Yes Bank entered the market in late 2004 when the banking space in India was already overcrowded with a number of public sector banks, private sector banks, and co-operative banks. Foreign multinational banks, which were growth-constrained, were also waiting eagerly for the sector to open up further in 2009 to make a major foray into this emerging market. However, despite being a late entrant, Yes Bank drew the attention of its competitors and analysts by the speed at which it grew and by increasing its operations throughout the country.

Learning Objectives

The case is structured to achieve the following Learning Objectives:

• The case will help the students to:
• Understand the competitive strategy adopted by a late entrant into the Indian banking sector
• Understand how Yes Bank differentiated itself from its competitors by adopting a 'knowledge banking' approach and carved out a niche for itself in the overcrowded banking sector
• Understand how technology can be a source of competitive advantage and how Yes Bank used it to turn its late entry into an advantage
• Appreciate the importance of human resources as a source of sustainable competitive advantage

Keywords

Knowledge banking strategy, Technology strategy, Sustainable competitive advantage, Human resource, Marketing research, Competitive strategy, Entrepreneurship, HR strategy, Innovation, Market entry, Yes Bank, State Bank of India