Malayan Bank Berhad | Analysis

Malayan Banking Berhad (Maybank) is the largest financial services group in Malaysia. Maybank started its procedure in Malaysia since 1960 up to now. They established e-banking system which gives the customers with several runs of financial products. (Maybank 2010). Michael Porter recommended that the industry is afflicted by 5 makes which are the electricity of customer and suppliers, threat of existing competitors, new entrants and alternative products (Investopedia 2010).

Large clients, businesses and wealthy individuals have significant effects toward the finance institutions (Ackerman 2008). It is because the banks are using their money to purchase the market to create profit. In addition, there are huge contests between all the banks. Therefore, the threat of suppliers is high. The lender might lack of capitals due to the brand turning of the large clients, companies and rich individuals.

Maybank2U. com has the highest ratio of site traffic which is 89. 4%. Although Maybank2U. com gets the highest traffic among all the sectors (Alexa n. d), but the customers are able to switch to some other e-banking services due to efficiency and efficiency of web sites. This has resulted in the power of customers is high. It is because the clients have potential to choose the alternatives which is relatively simple and inexpensive (Recklies 2001).

The release of Internet has created opportunities and hazards in the e-banking lines. E-banking services improved the design of relationship between the customers and the lenders (Siaw 2004). In today's world, they are employing Internet to socialize. It has created convenience between two gatherings. Hence, the risk of existing opponents in the e-banks is high because they are using the idea of point of parity. Maybank2U. com will not monopolize the marketplace and there are rivals such as Hong Leong online banking, CIMB clicks and so many more. This allowed the clients to switch brands easily.

In 21st century, Internet has become part of the necessities. The customers are challenging for e-banks rather than going to the banking institutions. Besides, the clients are not allowed to do ventures if the bankers are using the conventional banking systems which are restricted to the office hours. Therefore, the demand for e-banks increased as they provided convenience to the clients. A lot of new entrants tried out to penetrate the market however they failed. For the reason that they can't form equal competition in comparison to the established loan company such as Maybank2u. com (Jordan 2002). It has led to the risk of new entrants is low.

There is not any real threat of substitute products in the Maybank2u. com. It could be argued that the mortgage is similar to the funding loan but simply differentiated by the interest rate. The main reason that the customers want is money in order to do investment funds (Ackerman 2008). Besides, they could use the Maybank2u. com to make repayments rather than having long queue in the lender. Therefore, this proved that the customers can choose the alternatives of the substitution and the dangers almost nil within the Maybank2u. com.

In conclusion, the power of suppliers and customers, the risk of existing competitors are high whereas the threats of the new entrants is low and the threat of substitute products is almost nil within Maybank2u. com. Maybank2u. com would form customer company intimacy. This allowed these to have close romantic relationship with the clients and suppliers. Thus, it can indirectly created brand loyalty toward the customers which the customers feel safe and also have trust toward Maybank2u. com.

(550 words)

Referencing

Ackerman, J 2008, The bank industry problems and competition, online, retrieved 9th Auguest 2010,

Alexa n. d. , About Maybank group (Maybank2u. com): Largest banking group, provides consumer, and bank services in Malaysia. Include internet banking, online, retrieved 11th August 2010,

Investopedia 2010, Industry handbook: Porter's 5 makes analysis, online, retrieved 7th August 2010,

Jordan, C 2002, Internet banking causes biggest industry shakes-up in 200 years, online, retrieved 10th August 2010,

Maybank 2010, Corporate profile, online, retrieved 7th August 2010,

Recklies, D 2010, Porter's 5 pushes, online, retrieved 9th August 2010,

Siaw 2004, An evaluation of the impact of the internet on competition in the banking industry, using Porter's five makes model, retrieved 8th August 2010,

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Business Information Systems (INFS 1011)

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