Analysis and Strategy of May Bank Free-Samples Myassignmenthelp

Questions: 1.Analysis and Strategy of the Industry. 2.Critically Discuss the ways in which the Company could shift its Strategy from "red ocean" to "Blue Ocean". 3.Identify and discuss the key Implementation Challenges. Answers: PEST Analysis of May bank Pest Analysis Political- May bank has been influenced by the rules, regulations and policies that have been introduced by the government of Malaysia. May bank is one of the first local banks that emerged along with online banking services (Sufian, 2015). The rules for the Malaysian bank have been imposed by the government is that, the security system of online banking service has to be much secured for the purpose of avoid cybercrime by the online banking services. The bank has formed a secured website so that the clients can feel safe and secured regarding their online transactions. Economical- Malaysia is considered as the growing economy country as their general rules and policies that affects the May bank is the interest rates (Sufian, 2015). In May bank, the bank provides out loans in order to export activity for boosting up the export activities, this has done for boosting up the economic status and conditions of the nations and at the same time to enhance the Gross Domestic Product of the country. Social- In relation to social analysis of the bank, it has been analyzed that May bank pay interest for its clients who keep their money in the bank accounts for the longer period of time (Sufian, 2015). There is a reason behind this is; the lengthier the currency is kept, the greater the interest rate. But there is one condition that, this arrangement does not work for Muslims because receiving interest without gaining is strictly forbidden in the Muslim society. Technological- Due to the reason of globalization, the Malaysians expect that all bank transactions to be done from the place where they stay. By understanding and analyzing this, May bank enable normal transactions like money transfer, bill payment etc to be happen online (Rasiah, Kim and Subramanian, 2012). The bank has also introduced May bank Phone banking system that allows clients to do transactions form anywhere they wish to and at any time. Porters five Forces of May bank Five Forces Threat Of New Entrance- In Malaysia, for entering into the banking sector, new entrants are necessary for having a high capital (Rasiah, Kim and Subramanian, 2012). May bank required to comply with various policies and rules from the government. Apart from this, huge amount of funds should be available to come in the industry. The cost of operation in the banking industry is huge along with various factors like opening new branches, IT system investment and also huge investment on employees or staffs. Threat Of Subsitute Products- The financial sectors like May bank is quite huge in respect to products and services. Along with the ranges of products and services, the probability of substitute product and services is quite high to bank (Rasiah, Kim and Subramanian, 2012). Varieties of services and product are only provides by May bank, the threat of substitute is quite moderate. Threat Of Existing Competitor- Analyzing about competition, it is quite high in the banking sectors like May bank because of its nature, as bank is competing to earn much more clients by providing effective rate than rivalries (Kee, Ahmad and Abdullah, 2016). Apart from banks, there are various financial institutions that functions same as banks, so the threat of existing competitors is quite high. Bargaining Power Of Customers- The power of customers is quite moderate in May bank as the depositing account is specially divided into two parts, i.e. time deposit account and saving account. Form customers can easily do transactions, apart from this, the bank tend to promote its services with help of simple account like credit card (Sufian, 2009) .The clouding network of services also provided by the bank that gives huge benefits to the customers. Bargaining Power Of Suppliers- The power of suppliers is moderate in May bank because the branches of May bank and network systems of the bank gain many suppliers (Sufian, 2009). The bank provides higher interest rate on deposit that attracts and drives attention of the customers to save money in the bank. Strategic mapping of May bank Best Retail Financial Provider May bank aim to maintain their top ranking in respect to entire market share all over their core retail financing products and services like, credit cards, mortgages, individual deposits as well as unit trust financing (Kee, Ahmad and Abdullah, 2016). The bank also intends for reinforcing their leadership position or level in distribution networks and touch points as a main community point. May banks Customer value Proposition centers serves the requirements of the community that involves small, individuals and medium companies as well as commercial customers. Leading ASEAN Wholesale Bank May Bank plan to grow into the leading ASEAN wholesale bank through establishing national leadership at the time of aggressively entering regional expansion and enhancement. This will also include their corporate relationship model and strategy (Khaderi and AbdShukor, 2016). The strategic mapping also involves regional market position for non- retail deposits and for corporate deposits, improving domestic positions, increasing spending to revenue from non- domestic markets, establishing a regional investments bank and the bank also intend to expand into China, India and the Middle East. Sustainable Champion for Insurance May bank search and aim to be the domestic insurance champion as well as an emerging regional performer by 2018 with the help of development of their life insurance, takaful business as well as general insurance (Khaderi and AbdShukor, 2016). The main objective of the bank is to establish a profitable and sustainable business. For the purpose of takaful insurance and general insurance, the bank will keep rapidness with development of industry at the time maintaining a better combined ratio in comparison to the market. 2.Meaning of red ocean strategy A red ocean strategy is a method that that purposes to contest and beat the rivalry with the companys rivals. In this strategy, companies try to outstrip their competitors to grasp the larger share of product or service request. As the current business marketplace is getting crowded, prospects of profits and growth for the companies is getting diminished (Papazov and Mihaylova, 2016). Products in the current business situation is becoming commodities or niche and developing a cutthroat competition that is turning the marketplace in Red Ocean. Red ocean strategy contains number for competitors. Red term is used for the highly competitive marketplace in the current business situation. Some of the characteristics of red ocean strategy are: It emphasis on opposing in a market which occurs in the present business situation The strategy aims in beating the competition(Papazov and Mihaylova, 2016). It focuses on the value and cost trade off which is a view that a corporation has the option of choice amongst creating more values to the clients but usually at upper costs. The strategy aims in exploiting the existing demand. Companies which implements red oceans strategy emphasis on implementation such as better promotion, lower cost base, etc. Meaning of Blue ocean strategy Blue ocean strategy is referred to a strategy developed by a company for a new, uncontested marketplace that makes competitors irrelevant. This strategy helps in making new purchaser value while declining the costs. The approach was introduced by W. Chan Kim and Renee Mauborgne. They witnessed that firms aims in engaging in head to head opposition in aim of gaining a continuous profitable growth(Aryawan, Linawati and Giriantari, 2016). However, in the current business situation and in crowded industries, there is more of Red Ocean of rivals fighting over diminishing profit margins(Langvardt, 2012). This strategy challenges everything that a company has got about the planned success and delivers a methodical tactic in making the opposition irrelevant. Some of the characteristics of Blue ocean strategy are: Focus: A good ocean strategy must be strongly focused and a companys planned profile should be evidently shown in it. Focus is the major factor where the companies elevated its presentation or usual in contrast to industry peers to distinguish them. Divergence: the value arc of the blue ocean plan always views apart from the challengers. Companies which develop their strategies according to their rivals always come to lose their uniqueness. Divergence assists in differentiating the business from the trade average profit and also supports them to reach a leap in value on strategy canvas, such as low-cost models. Divergence makes an organization to be separately from the rest from the companies (Aryawan, Linawati and Giriantari, 2016). It is situation where the companies reduces or eliminates assured factors in its approach canvas which will have an influence on the price without upsetting product and service quality and also to the demand of the purchaser. Compelling Tagline: A blue ocean tactic has a clear cut and ready to link tagline. An appropriate and strong tagline on the approach of a company will give clear communication on cost-value contribution and generate interest to the consumers (Boya, 2016). The usefulness and success of a blue ocean strategy is dogged by a sturdy tagline. Difference between Red Ocean and Blue Ocean strategy Red Ocean Strategy Blue Ocean Strategy Emphasis on present customers Emphasis on non-customers Beat the rivalry Create the competition irrelevant Abuse the prevailing demand Generate and Seizure new demand Make the value cost trade off Disruption in the value cost trade off Bring into line the complete system of a companys doings with its tactical choice of variation Bring into line the whole scheme of a companys doings in quest of difference Implementation of Blue Ocean strategy from red ocean strategy Kim and Mauborgne divided the marketplace in two different oceans namely, red ocean and blue ocean. In the red ocean, businesses attempts to outpace their competitors to gain the market share, whereas, in blue oceans strategy, firms try to find new merchandises and services in unconcealed marketplace, it is represented by savvy marketing service providers(Rumeser and Emsley, 2016). This strategy is sought for trapping untouched market places. Companies which are presently in Blue ocean strategy, a key note are that the technology of any new product or thing already exists. One of the major requirements in constructing a blue ocean strategy is renovating the market limitations. Companies have to pursue blue ocean strategy in places where the rivalry is not beholding (Rasiah, Kim and Subramanian, 2012). Markets in the present business are looking for associates that will support them in reaching the todays untouched customers and places and interact crossways the multiple networks by f etching technologies. As for illustration, VistaPrint developed the decisive blue ocean strategy. As other printers are struggling in the Red Ocean of print attaining, VistaPrint amassed volume and made professional print and multichannel marketing amenities, reasonable for all size businesses. To transform the business, and strategy from the Red Ocean to Blue Ocean, companies have to go on board on a mission to develop an unconcealed market place. This may mean concentrating on the vertical marketplace niche or functioning with new customers to explore new markets(Randall, 2015). Blue ocean strategy is all about defines the services to make the competitorsirrelevant to their prospects, and to create and capture new demands. It is about delivering increased value to the clients and thus finally aimed at building a healthier business. It is not by chance that companys tries to shift from the red ocean to Blue ocean strategy. There are always reasons behind it (Patil, 2016). The first element includes the invention advanced technologies that enable manufacturers to release new products and services that are totally extraordinary. But, due to range of innovative products in same industry, supply power exceeds the customers demand. It is pressure of red ocean strategy that makes businesses to focus on the Blue Ocean Strategy for having a sustainable business. Key Points of Blue Ocean Strategy This strategy is grounded on data, which is based on more than 150 strategic moves. It huntsdifferentiation and low price and it is basically a and-and strategy and not an either-or strategy(Papazov and Mihaylova, 2016). Blue ocean strategy does not pursue in outpace the opposition. The strategy aims in making the rivalry inappropriate by rebuilding industry limitations. It authorizes organizations through different tools and bases. It delivers systematic tools and agendas to disrupt away from the opposition and helps in building an uncontested Blue oceans market space (Butler, 2008). The blue-ocean strategy delivers companies step by step procedure from evaluating the current state of play in commerce. It is about converting the noncustomers onto customers. The strategy delivers a clear process (Aryawan, Linawati and Giriantari, 2016). It also assists companies in challenging the moneymaking viability of its ideas and displays how to improve the thoughts to make the most of or enhance the upside risk to and diminishing the downside risk. It develops in building execution of the approach and the shared wisdom of a corporation. It helps companies to generate a win-win outcome for the businesses (Boya, 2016). The Blue Ocean strategy shoes companies how to bring into line the three approach prepositions, namely the value, profit and people. It helps in creating a win for the buyers, the organization 3.In May bank, as online transactions risks are high as well as varied, risk management of the bank should take into account the state of technology, the one-bank rivalries for the payment business, the banking industry and also adoption rate of trendy technology by the customers (Patil, 2016). May bank Malaysia is regulatory as well as supervisory approach to technology risks that contains three factors. The first most research and the collaboration of the bank are with the central banks, multi-lateral companies and vendors of technology. The second factor is that issuance of minimum guidelines as well as standard for banking practices involves the technology management risks (Nelson, 2012). May bank issued a rudiments in association to the Internet Banking which compels various banking organizations and institutions that provides internet banking services for implementing a rigorous risk management system as well as structure (Ansoff, 2014). This also contains various online defens ive mechanisms like intrusion management, authentication tools and also virus detection. The last factors associates with the risks of monitoring as well as real compliance to the standards issued. This also includes a combination of off-site supervision according to the reports submitted with the help of the banking organizations and also on- site examinations by the examiners. The rudiments to all three factors is the potentiality for understanding as well as managing the complexity of the risks of technology, that are whether in respect to online transactions or normal transactions (Hitt, Ireland and Hoskisson, 2017). The satisfactions of the customers and the clients may increase on the basis of their needs and demands, status and standard as well as power of buying. Today, May bank has moved from a product and sales factors to a new marketing factor. Customer- centered or oriented bank like May bank has emphasized a better understanding of the requirements and demands of the customers and then translate them into the potentiality to give customers what they actually demand and need. 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