Porter's 5 Forces Pdf

The above graph shows a significant presence of MFIs in the states of Mizoram, Karnataka, Tamil Nadu and Odisha. Also states such as Karnataka, and Odisha have marked higher customer penetration, meaning these markets are highly penetrated. For an MFI to increase its presence, it is essential to concentrate on the next set of states which are observed to have lesser MFI and customer penetration like Arunachal Pradesh, Jharkhand, Meghalaya and Tripura. These states will have a higher requirement of funds and higher capability in the market to pay and increased credibility. It is essential for MFIs to identify the right market segment to target and also identify the suitable set of partners in the form of banks, BCs, sales agents, customer service

Value finance can be briefly explained as identifying the value chain for a business and helping not only raise capital for itself but also tracing stakeholders in the value chain that maybe equally in need of capital. The underwriting for the business would need to be considered in total and hence the evaluation of the entire stream of the business would not only assist in capital requirements of the intended business but also every component of the chain. The MFI can help in a term loan or working capital management for the smaller vendors in the chain, helping to bolster the revenue of these entities. From the point of view of the product mix for a typical customer of an MFI, it is clear that each customer will have his/her own set of requirements for the business. These requirements need to be evaluated well to provide tailored products to the customer. One such proposed model could be to not only provide for the capital requirements of the MFI but also help the MFI reach out to its prospective customer and help him/her negotiate the best possible price for the product/service for accelerated growth of both the customer and the MFI. This will provide forward and backward penetration of the MFI in the lines of business of the customers, i.e. the value chain of the customer and their prospective

Use of these technologies and digital solutions can help MFIs not only to achieve their growth objectives through increased outreach and responsiveness but also to reduce high managerial expenses. Proposals by the Government of India like ‘Broadband for All,’ which aims at covering 2,50,000 villages through the National Optical Fiber Network (NOFN) by December 2016,14 and the ever-expanding 4G and 3G network courtesy Indian telecom companies will safeguard Internet connectivity even in secluded areas, which is a critical necessity for use of digital Ministry of Electronics and Information Technology, Government of India. Digital India. Earlier, the high investment required in technology was a barrier towards its adoption in MFIs but with the pay-per-use and cloud model, the capital intensive technology is within the reach of organizations of varied sizes. Use of alternative credit mechanisms can assist MFIs in effective risk management and decreasing the need for these provisions considerably. Sales force transformation and use of analytics and technological integrations with other partners can have a considerable impact on the top line of MFIs, while end-to-end digitization, customer self-service solutions and use of alternative credit scoring mechanism can enhance the MFIs’ bottom line. The savings due to the use of technology and digital solutions can be further passed on to the