Swot Analysis

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SWOT ANALYSIS

STRENGTHSWEAKNESSES

1)Maybank’s position as the undisputed leader in financial services in Malaysia, which has a widespread global presence (19 countries worldwide), allowing it to spread risk and enjoy economies of scale.

2)Its brand is well-established historically and continually promoted, for example through sponsorship of Golf Tournament and WWW Foundation for Bengal Tigers.
3)High client retention with higher than average checking account balances in the year 2011, with total net profit of RM3, 358, 699 and RM7,478, 206 market capitalization serving 20millions customers worldwide (as at early FY2011).

4)A user-friendly website, www.maybank.2u.com.my is the pioneer for internet banking in Malaysia.

5)Product line diversification, from loans financing, deposits, insurance to investment banking. Early results in FY2011 saw over 100% increase in revenue performance at branches increased product penetration in Maybank’s corporate client product portfolio.

6)According to its FY2011 financial report, Maybank showed low overhead cost RM3, 933, 798.

1)With all the good branding and all, Maybank is still low of customer satisfaction rating. They are rated at number 7 (out of 8 banks in Malaysia) for customer service in year 2012.

2)No continual evaluation and updating of human resources practices and policies. The workers collateral agreement has been passed due from March 2010.

3)Maybank has a reputation for new product development and creativity. However, they remain vulnerable to the possibility that their innovation may weaken over time due to homogeneous products served.

4)Maybank has a strong presence in the Malaysia. As they need to look for a portfolio of other countries in order to spread business risk, Maybank tends to invests in countries which have a non-stable economic presence such as Vietnam, Indonesia and Philippines.

OPPORTUNITIESTHREATS

1)Maybank recently introduces various core values initiatives to their workers. This in turn will promote teamwork across divisions and later will tap the staff hidden strengths.

2)Maybank has increased community responsibility for service delivery by engaging to various Corporate Social Responsibility (CSR) projects. This work and life balance has been achieved between value creation and corporate responsibility. This in turns increase the staff morale and strengthen the relationships with the community nationwide.

3)The company has the opportunity to expand its global operations. New venture in Vietnam and Indonesia has introduced new products range and services. Recently Maybank has introduced Syariah based products for the Indonesian’s market.

4)Supported by improving economic growth, the equity markets should continue to do well. The higher volatilities and possibility of a market pullback are seen as opportunities. Meanwhile, the bond market will continue to benefit from the Ringgit Malaysia appreciation and lack of new supply.

1)World economic turmoil could affect bank’s expansion in the region. The current middle-east crisis is an example of the devastation.

2)The NUBE (National Union of Bank Employees), an association for non-clerical staff, have made an issue when they demand 80months of compensation salaries to the bank. This will damage the bank’s good image if the demand is not fulfill wisely.

3)Other banks may attract employees and business away from Maybank as they are shown work more aggressively promoting their product lines and presence in the country (e.g. ; Public Bank, RHB Bank and CIMB).

4)Maybank are exposed to the increasing cost of Information Technology experts as they have too much dependency on them by accepting outsourcing and engaging with high end technologies such as from the Oracle. etc.

Internal Factor Analysis Summary (IFAS)

Internal FactorsWeightRatingWeighted scoreComments
STRENGTHS

1)Maybank’s position as...
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