Maybank Corporate Level Strategy

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PART 4: PLANNING AND STRATEGIC MANAGEMENT
(g) What is the organisation’s corporate level strategy?
Corporate level strategy can be defined as the master plan that decided by the top management for the whole company and also the organisation’s strategic business units. With the help of corporate level strategies, an organization or company can determines and indicates what business it should be in, which path it should follow and also which role should be played by respective business units in order to pursue respective direction. By the way, corporate level strategies can be divided into three types which are growth strategy, stability strategy and also renewal strategy.
As same as other organisations and companies, Malayan Banking Berhad
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Under growth strategy, Maybank is using diversification, which is also can be classified into related diversification and unrelated diversification. Among these two types of diversification, Maybank is using unrelated diversification, which means an organisation expands its business either through merging or acquiring organisations in a new or unrelated products or services for higher financial returns. For instance, Maybank which is a commercial bank, is involved in services of insurance, like Maybank Assurance. In order to increase the sales volume of Maybank, new products or services need to be included. Therefore, by using this strategy, it would be easier to compete in a highly competitive environment. In addition, as there will be no new additional costs will be added into the organization, so most of the commercial banks pursue the same channel of distribution which are involved in insurance related products or services. Besides, according to an article from ETIQA’s offical website, it shows that Maybank’s insurance and takaful is a merge of Malaysia National Insurance and Takaful Nasional, which lead to the entire insurance and takaful group getting a new brand name, ETIQA and this merge leads Maybank to gain a higher profit or higher financial return. From their merge in insurance industry, it shows us…show more content…
According to Michael Porter, business-level strategies are concentrated on how an organisation should compete within its businesses. Under Porter’s competitive forces model, there are five competitive forces which are threat of new entrants, threat of substitute, bargaining power of buyers, bargaining power of suppliers and current rivalries. Our concern today is which forces model that Maybank will implements. In bargaining power of buyers, we may relate to Maybank2u. It is e-banking system which provides customers a wide range of services in a more effective way. As cited in Alexa n.d, Maybank2u has the highest percentage of side traffic which is 89.4%. I argue that the bargaining power of buyers is high because the customers are able to switch their e-banking system to other banks that are available in same system. Customers will evaluate which will be the most effective and efficient e-banking system, therefore the power of buyers is high. Furthermore, the current rivalry of Maybank is high. Through e-banking system, it brings convenience to a lot of people and this leads to high current rivalry as other banks such as Hong Leong Bank and CIMB Bank also having a same concept which is the same with Maybank2u. Since Maybank does not monopolize the market as the competitors are present, therefore the competition between the competitors is

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