Biz Strategy Maybank

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1.0 A bank is a financial institution licensed by a government and its primary activities include borrowing and lending money (BAFIA 1989). Malaysia first domestic bank is Kwong Yik (Selangor) Banking Corporation (now Malayan Banking Berhad) established in 1913. Maybank is the largest bank in Malaysia, operating with 374 domestic branches, 90 international branches and employing over 10,000 people (Maybank Annual Report 2009)
The Malaysia retail banking industry is primary dominated by few competitors, including major player such as Maybank, Public Bank and CIMB that possess a market share of 75% and small chain of international commercial banking, Citibank, HSBC and Standard Chartered with a further 25% (Azmi & Associates 2008).
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This substitute can reduce Maybank competitiveness and medium business loan market share for targeted clients and it infers that the threats of substitute is high
The power of buyers is the impact that customers have on a buying process of the products from the banking industry. If a client has a house loan, car loan, and credit card with a particular bank, it can extremely tough for that individual to switch to another bank. In attempt to entice in clients, banks try to lower the price of switching, which Maybank tries to offer product value and convenience to customers. However, in banking industries hardly sustain with differentiation strategy which due to others banks will follow to imitate the product and services offered. This implies that for the bank to survive profitably in the industry, it needs to provide a premium product value to the clients (Kotler, 1991). Maybank has corporate with Tenaga National Berhad (TNB) by offering the TNB clients to pay their bills via online (M2U), with an average monthly value of payment to TNB via M2U is over 25 million (M2U,29 Jan 2009). It is therefore urged that from the high buyer bargaining power portray high threat towards Maybank because the clients have variety of banks to choose from to save, transact and invest their money with low switching cost.
The core business of the banking industry is mainly ‘service’ which the supplier for the industry are tangibles. It includes cheque books, funds, human

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