Biz Strategy Maybank Essay examples

2982 Words May 9th, 2013 12 Pages
1.0 A bank is a financial institution licensed by a government and its primary activities include borrowing and lending money (BAFIA 1989). Malaysia first domestic bank is Kwong Yik (Selangor) Banking Corporation (now Malayan Banking Berhad) established in 1913. Maybank is the largest bank in Malaysia, operating with 374 domestic branches, 90 international branches and employing over 10,000 people (Maybank Annual Report 2009)
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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Hence, this is relation to concentrated suppliers where the supplier has more power over buyers (Johnson 2008). Relatively, Maybank face a high treat towards the only fund supplier, however the power of supplier for others such like cheque books and human capital are low which relation that portray low treat towards Maybank because these suppliers are competitive in the market.
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.
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