Analysis Of Porter's Five Forces Maybank

PORTER’S FIVE FORCES ANALYSIS

Porter’s Five Forces point out five competitive forces that influence planning strategies: the threat of new competitors, the threat of substitute products or services, the bargaining power of customers, the bargaining power of suppliers and the rivalry among existing firms in the industry. These five forces determine the profit of an industry and helps Maybank to have a better perception and understanding about the industry in order to develop strategies for tough competing. Eventually Maybank has now become the Malaysia’s largest financial services group. threat of new competitors

Nowadays, banking industry is a popular sector due to its high profitability. And thisultimately attracts many entrepreneurs to venture

This is actually athreaten to Maybank as the customers of it will finally withdrawal their money from savingsaccount or fixed deposit accounts and invest in the particular firm’s shares, cherish the hope thatthey will be rewarded a high return.As the impact of technology evolution, all businesses are now going online, eliminatingbrick and mortar. A bank is no longer gaining absolute advantages although they have achievedlarge scale of economies. This is due to the high fixed and operating cost like rental and utilityfees of the physical store. Besides, the bureaucracy organizational structure may harm theperformance of it as the result of inefficient and inflexibility. Many researches argue that Internetbanking will ultimately be the dominant trend in banking sectors.In order to cope with the above challenges to remain sustainability, Maybank has offerede-share application. It gives a fast way for customers to applying for Initial Public Offerings(IPO) via Maybank2u.com (M2U). By integrating this investment service, Maybank can assistthe customers to well manage their wealth and successfully prevent the customers fromwithdrawing their money and subscribe the IPO at brokers. Maybank has acquired more than half the Malaysia online market through continuousinvestments in the particular

This could drive down therevenue of Maybank. Furthermore, poor customer service of a bank may increase the bargaining power ofcustomer. For example, if Maybank could not understand what actually customers require orineffectively handle the customer complaints, it could reduce the switching cost of customers andthey will finally switch to other banks for a better service. In order to avoid a high bargaining power implanted in customers, Maybank has investedin an Analytical Customer Relationship Management system to efficiently utilize the informationgained from each customer for improvement purpose. This system enables Maybank get to knowthe expectations of customers towards the bank. Then, Maybank formulates strategies and comesout with superior performance to cater the needs of customers. Right now, Maybank is hoping togenerate a complete picture of a customer’s lifecycle by using the system to grow their business.Besides establishing of the feedback dropper on their website, Maybank also focus on thefundamental values of hospitality, friendliness and skills in handling customer complaints. To dothis, the GUEST & Telephone Etiquette Programme has been launched April 2009 and WeS.E.R.V.E Programme in December 2009. Maybank also promotes various incentiveprogrammes to reward the customers. For instance, in conjunction with the launch of GSCMobile App (iPhone), Maybank2u.com is absorbing the