Making sense of strategy

3080 Words13 Pages
B301A
Making Sense of Strategy I
An Analysis of the Impact of the Internet on Competition in the Banking Industry, using Porter’s Five Forces Model

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Table of Contents

An Analysis of the Impact of the Internet on Competition in the Banking Industry, using Porter’s Five Forces Model

Question 1:
Examine how the emergence of the internet is likely to affect the competitive landscape of the banking industry.

a. Evolution of Internet & its Effects on Banking Industry:
In today’s modern era, nobody can deny the immense growth of technology and power of computerization. Modern computerized revolution has penetrated into every sector in the
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Online banking approach provides flexibility to remain connected with your valuable customers 24 hours and keep them updated about their desired information on a regular basis. This helps to enhance the image and reputation of the bank. Provision of fast value added services helps to acquire customer attention more promisingly, with added customer loyalty and trust. A lot of new innovative technologies and advance services are rapidly becoming a part of online banking system. This will provide a competitive edge to bankers by attracting more customers with powerful client oriented packages and consumer driven initiates.
Internet as a strong means of communication has greatly helped to boost the online banking process and making it a future demand of today’s banking industry.

Question 2:
Provide an analysis of the resources and capabilities a typical bank needs to have to be able to compete in this environment dominated by internet and online banking.

b. Fundamental Requirements to Establish a Hi-tech Banking Industry:
With the huge growth of banking business and emerging need of internet banking, there must be a wide availability of resources and capabilities that a bank should possess to compete in a fast paced environment. Let’s talk about these resources and capabilities that make a bank successful in today’s modern computerised world.
1. Online Banking:
The first and foremost necessity of today’s computerized banking industry is to
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