One of the ethical issues that may arise from Maybank’s Hire Purchase product is unfair debt collection. For instance, a customer applies for Maybank’s Hire Purchase to finance a car of his liking, regardless of whether the car is new, second-hand, or even reconditioned. After the bank (Maybank) goes through the credit history of the customer, the bank has found out that the customer has a bad credit history. Many of his previous loans have been delayed in payments or even declared as losses by the other banks. In normal circumstances, any bank would immediately reject the application, as it may be a potential loss to the company, and the customer may create problems for the bank in the future.
A number of banks are also targeting the wallet space, hoping to ensure that their transactions businesses (National Electronic Fund Transfer, or NEFT; Real Time Gross Settlement, or RTGS, and cards) are not captured by the m-wallet providers. Retention of customers is going to be another major challenge that is directly proportional to market share of banks. Technology has made it possible to deliver services throughout the branch bank network, providing continuous updates of customers accounts and rapid movement of money from stock transfers. However, this reliance on the network system has brought IT department’s extra burden and challenges in managing, maintaining and optimizing the productivity of retail banking networks. Illustratively, ensuring that all bank products and services are accessible, at all times, and across the entire workplace is essential for present days retails banks to generate profits and remain competitive.
As evaluated in the above report through the PESTEL, 5 forces and SWOT analysis one can conclude that the development of digital banking systems will be beneficial for FIMBank since although the emergence of the digital consumer gives rise to new opportunities most banks have not yet developed a consolidated offering that equals those offered by other industries. Hence, by providing an innovative digital banking service FIMBank can still attain first mover advantage, increase its market share and in turn increase its profits. Moreover, it is important for FIMBank to recognise the fact that digital banking is more than getting customers to use the service provided it is rather a matter of how to run the whole organisation since all delivery channels should be configured in order to provide a virtuous customer
The fifth force is the “Rivalry among competitors”. Rivalry is very active in the commodity industry and there is zero impact of this on the profitability of an industry whereas the factor affecting the profitability is the superior substitute. For example Kodak and Fuji faced these threats. Rivalry gives the benefits when the price competition passes on directly from the industry to its customers. The main point discussed in this force is the zero-sum competition; which is when the competitor fulfills the same needs.
That would diminish their competition to some extent because if customers have to choose one or the other for a similar if not equal price, they would go with the one that has a better reputation and more functionality. Time is money in an investors mind. Providing at the moment data is detrimental to a firm’s success so although Bloomberg has had a very successful past with providing this information to their investors, competitors could also catch up to their speed. I also would recommend Bloomberg to try to look out for new customers. Recently in the NY times, it was said that “ Bloomberg is testing a Web-based product aimed at law firms.” (Clifford, 2009) Another issue that I think should be fix is trying to focus on their main source of income and expanding more in that field.
Getting to know about five forces helps company to understand the industry’s structure and point out the position which is more profitable. Competition is defined narrowly by the managers. There are huge returns in those companies where forces are strong and companies are profitable if forces are kind. The forces which are stronger are considered for strategy formation and these also determine the profitability. The five forces are categorized by Michel Porter as follows: First we will talk about threat of new entrants, new entrants bring something unique or diversified into the industry to gain market share, this thing puts pressure on the existing companies to lower down prices and cut down costs.
Introduction IBM India is known globally for its services in Information Technology. Whereas most of the IT Company outsources for IT services, IBM has been there to offer IT solutions to the IT companies and other types of companies that are in need of IT services. In 2009, IBM India saw the expanding Japanese IT market. Just like many other IT companies in the world, it decided to seize the opportunity in order to increase the market for its IT services (Chatterje and Chaudhuri 2009, p1). It, therefore, strategically decided to outsource the Information Technology market in other countries.
In the following essay I will be analysing and discussing Porter’s five forces. Created and named after Michael E. Porter, Porters model of the five forces helps a “company understand the structure of its industry and stake out a position that is more profitable and less vulnerable to attack” (Porter, 2008) The five forces that shape an industry are the following; Threat of new entrants, Bargaining power of suppliers, Threat of substitute products or services, Bargaining power of buyers and finally, Rivalry among existing competitors. (Porter, 2008) This analysing tool can help determine your position in the market, help create strategies and determine the industry’s long run profit potential. In the first section of the essay I will take you
They can also formulate or develop different options such as new strategic direction and product differentiation that would improve their competitive position. These forces also allows the organization to systematically analyze the market structure and competitive situation. This helps them understand the strength and weaknesses of their company. The Porter’s five forces also influences the concepts of management which are planning, control, leadership, and organization. Planning is thinking of actions or strategies in advance in order to achieve the desired goal.
1- In 1979, Michael Porter settled the five aggressive power that are utilized for the strategic business study, these strengths are competent to be utilized to asses and watch the focused building of an industry through review the five powers as influence and kind of income prospects, later on, these power of rivalry have turned into a drive idea to business hypoesthesia. The part of these five power is more than considering the prompt opponents, it goes further to concern the various sides and the business “ financial atmosphere and aggressive construction”, like the bartering force suppliers, danger of new contestants, risk control unit to which they bring rivalry up in the assembling. On the off chance that the quality powerful, then