Biz Strategy Maybank Essay examples
The Malaysia retail banking industry is primary dominated by few competitors, including major player such as Maybank, Public Bank and CIMB that possess a market share of 75% and small chain of international commercial banking, Citibank, HSBC and Standard Chartered with a further 25% (Azmi & Associates 2008).
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The three main factors directly affecting the degree of competitive rivalry in relation to industry banking which are industry growth rate, high exit barriers and low product differentiation. The banking industry life cycle is reaching at the maturity stage which the low differentiation become a niche strategy to compete in local. Thus, the low switching cost offered from one bank to other bank reflects the industry maturity stage. Whenever one bank comes out with our new product or service, it cannot stand for long period as other banks will follow its products and services. In addition, Maybank facade high exit barrier forces to linger in the retail banking industry even when the business venture is not profitable. The contribution factor of banking industry life cycle maturity causes the low industry growth rate and product standardisation. The statistic loan growth in banking industry year to date 2009 is 6%. Thus, Maybank and others rivalry are competing with each other to provide the lowest and attractive interest rate to the clients.