Roll No.

- 8,25,35,44

Path map for presentation

Industry Analysis

Porters 5 Forces PESTLE Analysis KSF Strategic Groups

Internal Analysis

Resources and capabilities Competitive Strategy

Value Chain Analysis

Strategic Positioning and trade-offs

TetraThreat Framework Analysis

INDUSTRY ANALYSIS

porters 5 forces: Banking industry

Threat of New Entrant Low: Regulatory policies, High capital requirement, and licenses Threat of Substitutes High: Many substitutesMF, Post offices, Stock market, VCs & Angel Investors; Change in attitude of customer.

Bargaining Power of Supplier

Low-Moderate: Few alternatives, RBI rules and regulations, and concentration of suppliers
Rivalry among Competitors High: Large no. of banks, low switching cost, Homogeneous products/services, High exit barrier

Bargaining Power of Buyer High: Number of alternatives, low switching cost, less product differentiation

PESTLE Analysis
Political and Legal Factors:
Regulated by RBI and Govt. of India Entry of new entrant through licenses Max. FDI allowed: 74% Consolidation of PSBs RBI formulates best practices in areas of provisioning, risk management, credit delivery, and disclosures.

Economic Factors:
Various factors- interest rates, per capita income, GDP, etc. Banking sector follows economic condition of the country. High growth rate results in high advances and low NPA levels. Repo rate affects cost of advances and deposit rates.

PESTLE Analysis
Social Factors:
People are risk averters. Change in lifestyle of youth. Increase in demand specialized banking. Population and literacy rates

Technology Factors:
Technology advancements enables product innovation. ATMs, plastic cards, Net Banking, Phone Banking, Mobile Apps. Social media: new platform

for

Environmental Factors:
Go paperless initiatives CSR activities.

KEY SUCCESSFUL FACTORS

Technology
Quality of Assets

Brand Image
Skilled Human Resource Product Innovation Scalability of Branches Transparency of Public Disclosures and Best Practices

Strategic Groups
State Bank of India H i g h P r o f i t s Bank of India Punjab National Bank Bank of Baroda HDFC Bank ICICI Bank

Union Bank of India Axis Bank Indian Overseas Bank

Standard Chartered L o w Indian Bank Citi Bank Syndicate Bank HSBC PSBs Foreign Banks Domestic Private Banks Development Credit Bank

INTERNAL ANALYSIS

Resources and Capabilities

Resources
Large domestic distribution network of branch (2752 branches and 9006 ATMs) and non-branch channels

Capability

Relation to KSF

High market penetration; largest private bank in India

Scalability of Branches

Large employee base and talent pool

Superior customer service

Skilled Human Resource

Subsidiaries, branches, and representative offices in 19 countries. Application called Money2India for easy remittance to India

Ability to service NRIs, international customers

Scalability of Branches

Resources and Capabilities

Resources
Technology pioneer; Customized products and services

Capability

Relation to KSF

Ability to attract and retain new customers. Takes the bank Technology and to customer-friendly areas like Product Innovation Facebook and mobile phones. Internal credit rating system to build a customer database and predict behavior, divesting non-performing assets

High quality of assets

Lower NPAs

Microfinance through partnerships with NGOs. Investment in nation-building Provides crop loans, through financial inclusion equipment loans, etc. Set up and infrastructure financing 4653 rural customer service points and 1000 branches

Brand Image

COMPETITIVE STRATEGY
Follows a 5C strategy
Credit growth CASA Mobilization Cost optimization Credit quality improvement Customer centricity

It has also focused on Diversification strategy.

VALUE CHAIN ANALYSIS

VALUE CHAIN

Strategic Positioning and Trade-Offs

Universal bank strategy an integrated financial services provider Market leadership in all retail products by capitalizing on: Increasing awareness of financial products Upward mobility of household income levels

Risk v/s Return Straddling Privilege Banking, SMEs Internal co-ordination not limiting activity alignment in different verticals Growth at any cost

TETRA-THREAT FRAMEWORK