Samath Bank Case Study

Sampath Bank PLC is one of the top private bank in Sri Lanka Incorporated in 1986. Currently operates with 229 branches and 381 ATMs located all over the Country. The Sampath bank successfully provides Financial Services in very competitive market. They have managed Corporate Banking and Personal Banking while maintaining very friendly and cordial relationships with the internal customers as well as the external customers keeping in mind the Values of Sampath Bank.

 Encouraging invention and value for customer.

 Treat all internal and external customers the way we would like to be treated.

 Encourage and promote teamwork in all aspects of behavior.

 Open to feedback and demonstrate an eagerness for personal development.

 Monitor and establish

2.1.4. Power of customers;

This specifically deals with the ability customers have to drive prices down. It is affected by how many buyers, or customers, a company has, how significant each customer is and how much it would cost a customer to switch from one company to another. The smaller and more powerful a client base, the more power it holds.

Some corporate individuals do have large deposits in Sampath, and exercise strong bargaining power to receive special rates from the bank. Sampath Bank is currently one of top market leader in providing wide range of banking services as result of that they have strong strategic advantage. Depositors are considered to be the suppliers of the banks.

Mainly businessmen are the major bargain hunter of Bank’s credit. Big amount creditors have strong powers in determining interest rate of their credit amounts. Banks distinguish their prime customers from others by setting a prime interest rate for them. So currently the bargaining power of Buyers (customers) is low and the bargaining power of the Suppliers (banks) is moderately high.

5. Threat of substitute

For example, if customers rely on a company to provide a tool or service that can be substituted with another tool or service or by performing the task manually and this substitution is fairly easy and of low cost, a company 's power can be weakened.

Some of the banking industry 's largest threats of substitution are not from competing banks but from non-financial competitors.

2.1 IDENTIFICATION OF COMPETITION

According to identification of competition, a company faces direct competition when there are other businesses within the market that offer the same services or products. Indirect competition occurs when a company faces business rivalry from substitute services or products. Both direct and indirect competition may lead to negative impacts on a company 's performance.

Under Figure 2 - Compare Housing Loan Interest Rates in Sri Lanka, help to identify the direct competitors of Sevana.

2.2 ASSESSMENT OF COMPETITION

Competitive advantage is the leverage that a business has over its competitors. This can be gained by offering clients better and greater value. Advertising products or services with lower prices or higher quality interests consumers. Target markets recognize these unique products or services. This is the reason behind brand loyalty, or why customers prefer one particular product or service