OCBC Porter's five forces
Threat of new competitor
Competitor's potential can impact the industry. This might affect ones earnings and survivability. Banking and finance industry influence the magnitude of the threat of new entrants. It can get a high profit with good managing and it will appeal to more fresh entrants looking for the potential revenue in banking service industry. Threat of recent entrant is a crucial factor in external competitive environment. Thus, firms have to be able to face the external environment problem. Inside the competitive marketplaces, new entrant into the same industry can cause a big obstacle to company, because fresh entrant may possibly have more powerful strategies to appeal to customer including the loan interest is cheaper, extent the time period of life insurance policy or even more benefits in life coverage insurance coverage. For example , Julybank is new entrant financial institution from Singapore, they have significant financial cost and capital investment in Malaysia, consequently they pose a big challenge to OCBC bank to compete in banking and finance sector due to OCBC bank's campaign and offer are certainly not attractive enough. It may trigger loss of profitability in the long run.
Threat of Substitutes
Substitute product is product that performs the same function or perhaps satisfies a similar need since an existing product. The menace from replace products is specially severe in the event the substitute products are effective. It will eventually directly impacts the promoting mix which is product, value, place and promotion. Modify of the economic is also key point to this threat such as pumpiing factor to create customer switching their inclination to replacement services. For instance , the mastercard holder of OCBC financial institution may becomes Public Traditional bank due to OCBC banks mastercard have to impose RM68 total annual fees and Public Lender without charge any kind of fees with Debit greeting card and get a same function with Credit-based card. There are many ways for a consumer to satisfy his needs from...