Industry Analysis of Bdo

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  • Topic: Mutual fund, Finance, Bank
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  • Published : March 7, 2013
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Industry Analysis of BDO Unibank, Inc.

Potential Competitors: Low Pressure

The BSP (Bangko Sentral ng Pilipinas) has tightened its rules on bank ownership. Capital requirements are high.
Most new entrants will start as small banks. This means that BDO will not be affected significantly (because of its size in the industry).

Rivalry Among Established Companies: Medium Pressure

The top 4 banks in the country in terms of market share are BDO, Metrobank, BPI, and Landbank. All three main competitors have been in the industry for a long time making them efficient at what they do (i.e. they are able to offer competitive interest rates) All three of them are experiencing steady growth.

Mature industry life cycle.

The Bargaining Power of Buyers (Customers): Low Pressure
The individual has little to no pressure on BDO.
BDO is offering a variety of financial services to individuals. Switching to another bank would mean that these special services will be lost. Example:
It has longer banking hours (does not close at 3pm)
It's open on weekends.
Some of its branches are located in SM Malls.

The Bargaining Power of Suppliers (Investors): Low to Medium Pressure Its main source of money supply is from deposits. Because of the size of the bank, people feel more safe about their money. They offer competitive rates to investors.

Investors can switch to other banks who also offer competitive rates. . It is a full service universal bank with one of the widest distribution networks and it benefits from being part of the SM Group, one of the largest conglomerates in the Philippines.

Substitute Products: Low to Medium Pressure

Mutual fund companies ended the year 2012 on a high note, with no funds registering negative growth unlike in the previous years. There are many cooperatives in the country that offer high interest rates because of favorable...
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