Malayan Banking Berhad | Analysis

993 words (4 pages) Essay

15th May 2017 Marketing Reference this

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Malayan Banking Berhad (Maybank) is the biggest financial services group in Malaysia. Maybank started its operation in Malaysia since 1960 to date. They established e-banking system which provides the customers with several ranges of financial services and products. (Maybank 2010). Michael Porter suggested that the industry is affected by 5 forces which are the power of customer and suppliers, threat of existing competitors, new entrants and substitute products (Investopedia 2010).

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Large clients, corporations and wealthy individuals have significant impacts toward the banks (Ackerman 2008). It is because the banks are using their money to invest in the market to generate profit. In addition, there are huge competitions between all the banks. Therefore, the threat of suppliers is high. The bank might lack of capitals due to the brand switching of the large clients, corporations and wealthy individuals.

Maybank2U.com has the highest percentage of site traffic which is 89.4%. Although Maybank2U.com has the highest traffic among all the industries (Alexa n.d), but the customers are able to switch to another e-banking services due to effectiveness and efficiency of the websites. This has resulted in the power of customers is very high. It is because the customers have potential to choose the alternatives which is relatively simple and inexpensive (Recklies 2001).

The introduction of Internet has created opportunities and threats in the e-banking line. E-banking services changed the style of relationship between the customers and the banks (Siaw 2004). In today’s world, they are using Internet to interact. This has created convenience between two parties. Hence, the threat of existing competitors in the e-banks is very high as they are using the concept of point of parity. Maybank2U.com does not monopolize the market and there are competitors such as Hong Leong online banking, CIMB clicks and many more. This allowed the customers to switch brands easily.

In 21st century, Internet has become part of the necessities. The customers are demanding for e-banks instead of going to the banks. Besides, the customers are not allowed to do transactions if the banks are using the conventional banking systems which are restricted to the office hours. Therefore, the demand for e-banks increased as they provided convenience to the customers. A lot of new entrants tried to penetrate the market but they failed. It is because they can’t form equal competition in comparison to the established bank such as Maybank2u.com (Jordan 2002). This has resulted in the threat of new entrants is low.

There is no real threat of substitute products in the Maybank2u.com. It can be argued that the mortgage is similar to the financing loan but merely differentiated by the interest rate. The main reason that the customers want is money so that they can do investments (Ackerman 2008). Besides, they might use the Maybank2u.com to make payments instead of having long queue in the bank. Therefore, this showed that the customers can choose the alternatives of the substitution and the threats almost nil within the Maybank2u.com.

In conclusion, the power of suppliers and customers, the threat of existing competitors are high whereas the threats of the new entrants is low and the threat of substitute products is almost nil within Maybank2u.com. Maybank2u.com would form customer supplier intimacy. This allowed them to have close relationship with the customers and suppliers. Thus, it can indirectly created brand loyalty toward the customers which the customers feel comfortable and have trust toward Maybank2u.com.

(550 words)

Referencing

Ackerman, J 2008, The banking industry problems and competition, online, retrieved 9th Auguest 2010,

Alexa n.d., About Maybank group (Maybank2u.com): Largest banking group, provides consumer, and banking services in Malaysia. Include internet banking, online, retrieved 11th August 2010,

Investopedia 2010, Industry handbook: Porter’s 5 forces analysis, online, retrieved 7th August 2010,

Jordan, C 2002, Internet banking causes biggest industry shakes-up in 200 years, online, retrieved 10th August 2010,

Maybank 2010, Corporate profile, online, retrieved 7th August 2010,

Recklies, D 2010, Porter’s 5 forces, online, retrieved 9th August 2010,

Siaw 2004, An analysis of the impact of the internet on competition in the banking industry, using Porter’s five forces model, retrieved 8th August 2010,

universityofsaR-blacksm

Assessment feedback

Business Information Systems (INFS 1011)

Assignment 1

Maximum value = 10 marks

Max. words required = 500

Key components of this assignment

Comment

Format / Presentation / Writing Style / Referencing

Introduction & Conclusion

Analysis / identification of issues

Summary comment

The Graduate qualities being assessed by this assignment are indicated by an X:

X

GQ1: operate effectively with and upon a body of knowledge

X

GQ5: are committed to ethical action and social responsibility

X

GQ2: are prepared for lifelong learning

X

GQ6: communicate effectively

X

GQ3: are effective problem solvers

X

GQ7: demonstrate an international perspective

X

GQ4:can work both autonomously and collaboratively

Assignment grade

Malayan Banking Berhad (Maybank) is the biggest financial services group in Malaysia. Maybank started its operation in Malaysia since 1960 to date. They established e-banking system which provides the customers with several ranges of financial services and products. (Maybank 2010). Michael Porter suggested that the industry is affected by 5 forces which are the power of customer and suppliers, threat of existing competitors, new entrants and substitute products (Investopedia 2010).

Large clients, corporations and wealthy individuals have significant impacts toward the banks (Ackerman 2008). It is because the banks are using their money to invest in the market to generate profit. In addition, there are huge competitions between all the banks. Therefore, the threat of suppliers is high. The bank might lack of capitals due to the brand switching of the large clients, corporations and wealthy individuals.

Maybank2U.com has the highest percentage of site traffic which is 89.4%. Although Maybank2U.com has the highest traffic among all the industries (Alexa n.d), but the customers are able to switch to another e-banking services due to effectiveness and efficiency of the websites. This has resulted in the power of customers is very high. It is because the customers have potential to choose the alternatives which is relatively simple and inexpensive (Recklies 2001).

The introduction of Internet has created opportunities and threats in the e-banking line. E-banking services changed the style of relationship between the customers and the banks (Siaw 2004). In today’s world, they are using Internet to interact. This has created convenience between two parties. Hence, the threat of existing competitors in the e-banks is very high as they are using the concept of point of parity. Maybank2U.com does not monopolize the market and there are competitors such as Hong Leong online banking, CIMB clicks and many more. This allowed the customers to switch brands easily.

In 21st century, Internet has become part of the necessities. The customers are demanding for e-banks instead of going to the banks. Besides, the customers are not allowed to do transactions if the banks are using the conventional banking systems which are restricted to the office hours. Therefore, the demand for e-banks increased as they provided convenience to the customers. A lot of new entrants tried to penetrate the market but they failed. It is because they can’t form equal competition in comparison to the established bank such as Maybank2u.com (Jordan 2002). This has resulted in the threat of new entrants is low.

There is no real threat of substitute products in the Maybank2u.com. It can be argued that the mortgage is similar to the financing loan but merely differentiated by the interest rate. The main reason that the customers want is money so that they can do investments (Ackerman 2008). Besides, they might use the Maybank2u.com to make payments instead of having long queue in the bank. Therefore, this showed that the customers can choose the alternatives of the substitution and the threats almost nil within the Maybank2u.com.

In conclusion, the power of suppliers and customers, the threat of existing competitors are high whereas the threats of the new entrants is low and the threat of substitute products is almost nil within Maybank2u.com. Maybank2u.com would form customer supplier intimacy. This allowed them to have close relationship with the customers and suppliers. Thus, it can indirectly created brand loyalty toward the customers which the customers feel comfortable and have trust toward Maybank2u.com.

(550 words)

Referencing

Ackerman, J 2008, The banking industry problems and competition, online, retrieved 9th Auguest 2010,

Alexa n.d., About Maybank group (Maybank2u.com): Largest banking group, provides consumer, and banking services in Malaysia. Include internet banking, online, retrieved 11th August 2010,

Investopedia 2010, Industry handbook: Porter’s 5 forces analysis, online, retrieved 7th August 2010,

Jordan, C 2002, Internet banking causes biggest industry shakes-up in 200 years, online, retrieved 10th August 2010,

Maybank 2010, Corporate profile, online, retrieved 7th August 2010,

Recklies, D 2010, Porter’s 5 forces, online, retrieved 9th August 2010,

Siaw 2004, An analysis of the impact of the internet on competition in the banking industry, using Porter’s five forces model, retrieved 8th August 2010,

universityofsaR-blacksm

Assessment feedback

Business Information Systems (INFS 1011)

Assignment 1

Maximum value = 10 marks

Max. words required = 500

Key components of this assignment

Comment

Format / Presentation / Writing Style / Referencing

Introduction & Conclusion

Analysis / identification of issues

Summary comment

The Graduate qualities being assessed by this assignment are indicated by an X:

X

GQ1: operate effectively with and upon a body of knowledge

X

GQ5: are committed to ethical action and social responsibility

X

GQ2: are prepared for lifelong learning

X

GQ6: communicate effectively

X

GQ3: are effective problem solvers

X

GQ7: demonstrate an international perspective

X

GQ4:can work both autonomously and collaboratively

Assignment grade

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