Final PPT1.ppt
-
Upload
abinash-biswal -
Category
Documents
-
view
223 -
download
0
Transcript of Final PPT1.ppt
-
8/17/2019 Final PPT1.ppt
1/45
Porter’s 5 Force Analysisof Banking Industry
November 12, 2013
Group – 2Abhishek Anand
Aman ChandanAmit KanojiaHabib KhanNayanchand Rao
-
8/17/2019 Final PPT1.ppt
2/45
Agenda
Case study: HFC Bank
Conclusion
Porters 5 Force !odel – "#er#ie$ %&tructure
Banking Industry – A Glance
5 Forces Analysis of Banking Industry
-
8/17/2019 Final PPT1.ppt
3/45
Agenda
Case study: HFC Bank
Conclusion
Porters 5 Force !odel – "#er#ie$ %&tructure
Banking Industry – A Glance
5 Forces Analysis of Banking Industry
-
8/17/2019 Final PPT1.ppt
4/45
Banking Industry – A Glance
&tructure !onopolistic Co'petition
P(ase !aturity
)ay For$ard Financial Inclusion
C(allenges &tringent capitalre*uire'ents to ac(ie#e co'pliance toBasel III +or's
Past Perfor'ance
-
8/17/2019 Final PPT1.ppt
5/45
Banking Industry – A Glance
-
8/17/2019 Final PPT1.ppt
6/45
-
8/17/2019 Final PPT1.ppt
7/45
Banking Industry – A Glance
Source: Report on trend and progress of Banking Industry by RBI 2012
-
8/17/2019 Final PPT1.ppt
8/45
-
8/17/2019 Final PPT1.ppt
9/45
Banking Industry – A Glance
Source: Report on trend and progress of Banking Industry by RBI 2012
-
8/17/2019 Final PPT1.ppt
10/45
Banking Industry – A Glance
Source: Report on trend and progress of Banking Industry by RBI 2012
-
8/17/2019 Final PPT1.ppt
11/45
Banking Industry – A Glance
Source: Report on trend and progress of Banking Industry by RBI 2012
-
8/17/2019 Final PPT1.ppt
12/45
Agenda
Case study: HFC Bank
Conclusion
Porters 5 Force !odel – "#er#ie$ %&tructure
Banking Industry – A Glance
5 Forces Analysis of Banking Industry
-
8/17/2019 Final PPT1.ppt
13/45
"#er#ie$ of 5 Force !odel
,epresents Co'petiti#e en#iron'ent oft(e -r'
&trategic foresig(t to a#oid puttingco'petiti#e edge at risk and ensure
pro-ta.ility of products in long ter' Pro-ta.ility of .usiness $it(in industrial
structure depends on follo$ing forces:
Co'petiti#e ,i#alry $it(in t(e industry
/(reats of +e$ 0ntrants
/(reats of &u.stitute Products
Bargaining Po$er of Custo'ers
Bargaining Po$er of &uppliers
-
8/17/2019 Final PPT1.ppt
14/45
"#er#ie$ of 5 Force !odel
"ften 'odel is ad1usted $it( t( ForcePu.lic Aut(orities
Because t(e 3a$s and +or's canin4uence porters 5 forces
-
8/17/2019 Final PPT1.ppt
15/45
-
8/17/2019 Final PPT1.ppt
16/45
&tructure
Co'petiti#e ,i#alry $it(in t(e Industry
&l8+o8
I+F390+C0 B C"!P0/I/I;0 !";0&
1. Lare no. o! "irms Chanin #rices
2. $%o& 'arket (ro&th )m*rovin #rod+cti-erentiation
3. Hih "ied Costs Creative%y +sin channe%so! istrib+tion
/. Hih $torae Costs *%orin re%ationshi*
&ith s+**%iers. Lo& $&itchin Costs
. Lo& Leve% o! #rod+cti-erentiation
. Hih it 4arriers
-
8/17/2019 Final PPT1.ppt
17/45
&tructure
&u.stitute Products,efers to products in ot(er industry
Products price elasticity is a
-
8/17/2019 Final PPT1.ppt
18/45
&tructure
Buyer’s Bargaining Po$erI'pact t(at t(e custo'ers (a#e on
industry&l8+o8
Buyers arePo$erful if
Buyers are $eak if
1. 4+yers areconcentrated
#rod+cers threaten!or&ard interation
2. 4+yers *+rchase asini5cant *ortion o!o+t*+t
$ini5cant b+yers&itchin costs
3. 4+yers *ossess acredib%e back&ardinteration threat
4+yers are !ramented
/. 66 #rod+cer s+**%ies
critica% *ortion o!b+yers in*+t
-
8/17/2019 Final PPT1.ppt
19/45
&tructure
&upplier’s Bargaining Po$erHo$ 'uc( pressure suppliers can place
on .usiness
&l8
+o8
&uppliers are
Po$erful if
&uppliers are $eak
if 1. $+**%iers are
concentrated'any $+**%iers &ithstandardi7ed *rod+ct
2. Credib%e !or&ardinteration threat bys+**%iers
#+rchase commodity*rod+ct
3. $ini5cant cost tos&itch s+**%iers
Concentrated*+rchasers
-
8/17/2019 Final PPT1.ppt
20/45
&tructure
/(reat fro' +e$ 0ntrants and 0ntryBarriers
+ot 1ust t(e incu'.ent ri#als .ut t(epossi.ility of ne$ -r's entering t(eindustry a
-
8/17/2019 Final PPT1.ppt
21/45
&tructure
Barriers to entry
-
8/17/2019 Final PPT1.ppt
22/45
&tructure
Pu.lic Aut(orities Go#ern'ent ,egulations
3icenses
,egulators
-
8/17/2019 Final PPT1.ppt
23/45
Agenda
Case study: HFC Bank
Conclusion
Porters 5 Force !odel – "#er#ie$ %&tructure
Banking Industry – A Glance
5 Forces Analysis of Banking Industry
-
8/17/2019 Final PPT1.ppt
24/45
5 Force Analysis of BankingIndustry
-
8/17/2019 Final PPT1.ppt
25/45
5 Force Analysis of BankingIndustry
Custo'ers Bargaining Po$er: HIGHBanks pro#ide (o'ogenous kind of
ser#ices
Custo'ers can o.tain all infor'ation
easily
&$itc(ing cost is lo$
&upplier’s Bargaining Po$er: 3")
!a1or sources of &uppliers of capitalCusto'er eposits
3oans fro' Financial Institution
!ortgage .acked securities
Banks (a#e to 'eet regulatory
-
8/17/2019 Final PPT1.ppt
26/45
5 Force Analysis of BankingIndustry
Co'petiti#e ,i#alry: HIGHue to presence of large nu'.er of
Pu.lic Pri#ate Foreign and Co>operati#e Banks
Factors !etro?9r.an ,ural
)nd+stryConcentrationratio8'arket$hare9
Lo& Hih
"ied Cost *ertransaction
Lo& Hih
#rod+ctdi-erentiation
Hih Lo&
-
8/17/2019 Final PPT1.ppt
27/45
5 Force Analysis of BankingIndustry
A#aila.ility of &u.stitutes: HIGHue to !utual funds />Bills
Go#ern'ent &ecurities and +BFC’s
Banking
&er#ices
Acti#ities &u.stitutes
Lendin Lendin 'oney toearn interest
0: "inance !orCons+mer (oods
e*osit ;akin #eo*%e de*ositmoney !or !+t+re
+se
Ho+sinCom*anies take
de*osits,)nvestment in$tock market <other instr+ments
Anci%%ary $ervices $e%%in )ns+rance,
'" or ")$.
N4"C does same
thin
-
8/17/2019 Final PPT1.ppt
28/45
5 Force Analysis of BankingIndustry
/(reat of +e$ 0ntrants: 3")
&etting up ne$ .ank re*uiresappro#al of ,BI
Pu.lic Aut(orities: HIGH
Banking industry is (ig(ly regulatedand 'onitored .y ,BI
-
8/17/2019 Final PPT1.ppt
29/45
Agenda
Case study: HFC Bank
Conclusion
Porters 5 Force !odel – "#er#ie$ %&tructure
Banking Industry – A Glance
5 Forces Analysis of Banking Industry
-
8/17/2019 Final PPT1.ppt
30/45
HFC Products % Custo'er&eg'ents
-
8/17/2019 Final PPT1.ppt
31/45
-
8/17/2019 Final PPT1.ppt
32/45
HFC 3e#eraging /ec(nology
-
8/17/2019 Final PPT1.ppt
33/45
5 Forces for HFC Bank
&a'e as BankingIndustry
-
8/17/2019 Final PPT1.ppt
34/45
Co'petiti#e ,i#alry of HFC:HIGH
Co'petition in t(is sector is #ery (ig(.ecause of large nu'.er of pu.licpri#ate foreign and cooperati#e .anks8
Pu.lic &ector Banks: &BI +ationali@edBanks ,egional ,ural Banks
Pri#ate &ector Banks: ICICI A=is
Foreign Banks> H&BC CI/
-
8/17/2019 Final PPT1.ppt
35/45
Co'petiti#e ,i#alry of HFC :HIGH
!any Players of &a'e &i@e> ICICI A=is
Players (a#e si'ilar strategies
/(ere is not 'uc( di
-
8/17/2019 Final PPT1.ppt
36/45
A#aila.ility of Product&u.stitutes of HFC > HIGH
/(ere is a (ig( t(reat fro' su.stitutessuc( as
!utual funds
/reasury .ills
Go#ern'ent securities
Post "ce eposits
+BFCs for 3oans % Ad#ances
-
8/17/2019 Final PPT1.ppt
37/45
A#aila.ility of Product&u.stitutes of HFC > HIGH
/(e relati#e price of su.stitutes> e8g>Post oces o
-
8/17/2019 Final PPT1.ppt
38/45
/(reat of +e$ 0ntrant for HFC >3")
,BI 3icensing and statutory re*uire'ents
Hig( initial in#est'ents and -=ed costs>5DD cr
HFC Bank reputation and .rand loyaltyof custo'ers
Good net$ork of .ranc(es $it( A/!’sc(annels> E25 Branc(es and A/!s in2D22 Indian to$ns and cities
-
8/17/2019 Final PPT1.ppt
39/45
&upplier’s Bargaining po$erHFC Bank > 3o$
!a1or sources of &uppliers of capital
Custo'er eposits
3oans fro' Financial Institution
!ortgage .acked securities
/(e po$er of t(e suppliers is largely.ased on t(e 'arket conditions
Hig(er t(e Interest rate – 3o$erBargaining po$er of supplier ,etail
custo'ers
&l8+o8 Custo'ers ,BI as supplier
1. Lo& Hih
-
8/17/2019 Final PPT1.ppt
40/45
Buyer’s Bargaining Po$er HFCBank > HIGH
Corporate Custo'ers > Hig(
,etail custo'ers > 3o$
If &$itc(ing costs – 3o$
/(en Bargaining po$er of .uyer isHig(
If &$itc(ing costs – Hig(
/(en Bargaining po$er of .uyer is3o$
-
8/17/2019 Final PPT1.ppt
41/45
Conclusion
-
8/17/2019 Final PPT1.ppt
42/45
/(ank ou
-
8/17/2019 Final PPT1.ppt
43/45
-
8/17/2019 Final PPT1.ppt
44/45
-
8/17/2019 Final PPT1.ppt
45/45