ING Direct: Redefining Direct Banking

ING Direct's strategy of focusing on simple products, low cost operations, aggressive pricing and advertising, has enabled it to be highly successful and profitable even though its flagship product the savings account is a low margin product. The case explores how ING Direct's strategy has enabled it to achieve its successful market position. The teaching objectives for this case are to illustrate how companies can successfully enter 'mature markets' and still succeed in carving out a successful position to achieve profitability. The case also illustrates how a corporate can be successful by maintaining consistency between its strategy and operations.