Industry Analysis (Porters 5 forces)
Porters Five Forces framework leave alone be used to analyze the attractiveness of the corporate verifying industry.
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little terror of New Entrants
Government regulations - Capital Intensity
In a tenderize to ensure the existence of strong banks that ar resilient to informal and external forces the Government of Sri Lanka has taken steps to promoting a heavy-armed and stable financial system. Accordingly a minimum super(p) requirement of LKR2.5Bn is required for any Licensed Commercial Bank, intending on commencing operations in Sri Lanka. In addition the banking industry requires large investments in terms of technology to ensure up to witness automated delivery channels. The current banks operating in Sri Lanka ar paying much importance towards the branch layout and appearance, hence in secern to remain competitive new entrants too would ingest to adapt to similar or better layouts in order to be attractive. (WWW.cbsl.lk)
Branding
The brand plays a signifi washbowlt role among consumers when selecting a financial service provider for their business requirements. In selecting a bank, consumers are apt to select a name that is reputed and is fountainhead established.
Proprietary fellowship
The knowledge inbuilt within a bank is considered remote and difficult.
Outsourcing a group capitas business can be replicated by minority of firms that can match its knowledge of local and national government infrastructure. Â
In analyzing the above we could break up that the threat of new entrants is low.
Bargaining power of Buyers
The banking sector in Sri Lanka is very competitive with most banks offering identical or similar products. HSBCs primary target customer particle is mainly spread through Colombo and its suburbs with the only elision of the branch in Kandy. HSBC is known for been an innovative bank and similarly a leader in its technological know-how, however these are areas which could be imitated over a period of time. (ie ATMs,...If you exigency to get a full essay, order it on our website: Ordercustompaper.com
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