OCBC
OCBC Porter’s five forces
Threat of new entrant
Competitor’s potential can influence the industry .This might affect ones profitability and survivability. Banking and finance industry influence the magnitude of the threat of new entrants. It can get a high profit with good management and it will attract more new entrants looking for the potential profit in banking service industry.
Threat of new entrant is an important factor in external competitive environment. Thus, companies have to be prepared to face the external environment problem. In the competitive markets, new entrant into the same industry can pose a big challenge to company, because new entrant may have more effective strategies to attract customer such as the loan interest rate is cheaper, extent the time period of life insurance policy or more benefits in life coverage insurance policy. For example, Julybank is new entrant bank from Singapore, they have large financial outlay and capital investment in Malaysia, therefore they pose a big challenge to OCBC bank to compete in banking and finance industry due to OCBC bank’s promotion and offer are not attractive enough. It may cause loss of profitability in the long run.
Threat of Substitutes
Substitute product is product that performs the same function or satisfies the same need as an existing product. The threat from substitute products is particularly severe if the substitute products are effective. It will directly affects the marketing mix which is product, price, place and promotion.
Change of the economic is also an important factor to this threat such as inflation factor to make customer switching their preference to substitute services. For example, the credit card holder of OCBC bank may changes to Public Bank due to OCBC banks credit card have to charge RM68 annual fees and Public Bank without charge any fees with Debit card and get a same function with Credit Card.
There are many ways for a customer to satisfy his needs from
Threat of new entrant
Competitor’s potential can influence the industry .This might affect ones profitability and survivability. Banking and finance industry influence the magnitude of the threat of new entrants. It can get a high profit with good management and it will attract more new entrants looking for the potential profit in banking service industry.
Threat of new entrant is an important factor in external competitive environment. Thus, companies have to be prepared to face the external environment problem. In the competitive markets, new entrant into the same industry can pose a big challenge to company, because new entrant may have more effective strategies to attract customer such as the loan interest rate is cheaper, extent the time period of life insurance policy or more benefits in life coverage insurance policy. For example, Julybank is new entrant bank from Singapore, they have large financial outlay and capital investment in Malaysia, therefore they pose a big challenge to OCBC bank to compete in banking and finance industry due to OCBC bank’s promotion and offer are not attractive enough. It may cause loss of profitability in the long run.
Threat of Substitutes
Substitute product is product that performs the same function or satisfies the same need as an existing product. The threat from substitute products is particularly severe if the substitute products are effective. It will directly affects the marketing mix which is product, price, place and promotion.
Change of the economic is also an important factor to this threat such as inflation factor to make customer switching their preference to substitute services. For example, the credit card holder of OCBC bank may changes to Public Bank due to OCBC banks credit card have to charge RM68 annual fees and Public Bank without charge any fees with Debit card and get a same function with Credit Card.
There are many ways for a customer to satisfy his needs from