1. Trang chủ
  2. » Luận Văn - Báo Cáo

Application of porters five forces to evaluate the competitiveness a case study at bank for investment and development hai ba trung branch,graduation thesis

50 20 0

Đang tải... (xem toàn văn)

Tài liệu hạn chế xem trước, để xem đầy đủ mời bạn chọn Tải xuống

THÔNG TIN TÀI LIỆU

Thông tin cơ bản

Tiêu đề Application of Porter's Five Forces to Evaluate the Competitiveness - A Case Study at Bank for Investment and Development Hai Ba Trung Branch
Tác giả Nguyen Thu Trang
Người hướng dẫn Tran Thi Thu Thuy, Nguyen Thuy Dung
Trường học Banking Academy
Chuyên ngành Banking
Thể loại graduation thesis
Năm xuất bản 2012
Thành phố Hanoi
Định dạng
Số trang 50
Dung lượng 1,07 MB

Cấu trúc

  • CHAPTER 1: INTRODUCTION (8)
    • 1.1. BACKGROUND TO THE STUDY (8)
    • 1.2. AIMS OF THE STUDY (0)
    • 1.3. RESEARCH QUESTIONS (9)
    • 1.4. SCOPE OF THE STUDY (9)
    • 1.5. METHODS OF THE STUDY (10)
    • 1.6. OUTLINE OF THE THESIS (10)
  • CHAPTER 2: THEORETICAL BACKGROUND (11)
    • 2.1. THEORETICAL BACKGROUND OF COMPETITION (11)
      • 2.1.1. Definitions (11)
      • 2.1.2. Classifications (11)
    • 2.2. THEORETICAL BACKGROUND OF COMPETITIVENESS (12)
      • 2.2.1. Definitions (12)
      • 2.2.2. Classifications (12)
      • 2.2.3. Competitiveness of a commercial bank (13)
        • 2.2.3.1. Definitions (13)
        • 2.2.3.2. Factors influencing the competitiveness of a commercial bank (14)
    • 2.3. THEORETICAL BACKGROUND OF PORTER’S FIVE FORCES MODEL . 8 1. The Five Competitive Forces model of Porter (15)
      • 2.3.2. Characteristics of five forces in Porter’s model (0)
        • 2.3.2.1. Bargaining power of suppliers (17)
        • 2.3.2.2. Bargaining power of buyers (17)
        • 2.3.2.3. Threats of new entrants (18)
        • 2.3.2.4. Threats of substitute products (20)
        • 2.3.2.5. Rivalry among existing firms (20)
      • 2.3.3. Application of the model in the bank industry (21)
        • 2.3.3.1. Bargaining power of suppliers (22)
        • 2.3.3.2. Bargaining power of customers (22)
        • 2.3.3.3. Threats of new banks (0)
        • 2.3.3.4. Threats of substitute products (24)
        • 2.3.3.5. Rivalry among existing banks (25)
  • CHAPTER 3: ANALYSIS AND IMPLICATIONS (0)
    • 3.1. THE COMPETITIVE POSITION OF BIDV HAI BA TRUNG BRANCH (0)
      • 3.1.1. Bargaining power of suppliers (28)
      • 3.1.2. Bargaining power of customers (0)
      • 3.1.3. Threats of new banks (32)
        • 3.1.3.1. New branches of other domestic banks (32)
        • 3.1.3.2. New branches of foreign banks (33)
      • 3.1.4. Threats of substitute products or services (34)
      • 3.1.5. Rivalry among existing banks (36)
    • 3.2. IMPLICATIONS (41)
  • CHAPTER 4: RECOMMENDATIONS AND CONCLUSIONS (45)
    • 4.1. RECOMMENDATIONS (45)
    • 4.2. CONCLUSIONS (48)

Nội dung

INTRODUCTION

BACKGROUND TO THE STUDY

Global competition significantly drives social and economic development, with the banking sector playing a crucial role in any economy An efficient and disciplined banking system fosters rapid growth across various sectors In recent years, Vietnam's banking sector has experienced a surge in competition, highlighting the importance of analyzing and enhancing banks' competitiveness for stability and prosperity One effective method for this analysis is Michael Porter's Five Competitive Forces model, which provides insights into the challenges and opportunities within the financial market By understanding their strengths and weaknesses through this model, banks can formulate appropriate competitive strategies to enhance growth and maximize profits.

Established in 1957, the Bank for Investment and Development of Vietnam (BIDV) is one of the country's largest banks, with a comprehensive branch network The Hai Ba Trung (HBT) branch, opened in 2008 in Hanoi, offers a range of diversified banking services aimed at enhancing BIDV's growth and the overall banking system However, the branch faces significant challenges due to the increasing number of competitors in the economic landscape and internal competition within BIDV itself To establish itself as a leading branch, BIDV Hai Ba Trung must clearly assess its competitive position and implement strategic measures to enhance its competitiveness effectively.

With the hope of providing a deeper view about the competitiveness of BIDV Hai Ba Trung branch, the researcher attempted to investigate into the topic “ Application of

This article analyzes the competitiveness of BIDV Hai Ba Trung branch using Porter’s Five Forces model By assessing the various competitive forces within the banking industry, the study identifies key strategies and recommendations aimed at enhancing the branch's market position The findings highlight the importance of understanding industry dynamics to develop effective approaches for improving competitiveness and achieving sustainable growth.

This study aims to enhance the understanding of Michael Porter's Five Competitive Forces model while analyzing the strengths, weaknesses, opportunities, and challenges of the BIDV Hai Ba Trung branch It evaluates the branch's current competitive position and offers recommendations to improve its competitiveness.

The study was done to answer the two following questions:

(1) What is the current intensity of competitiveness of BIDV Hai Ba Trung branch?

(2) What should the branch do to improve its competitiveness?

The study is conducted only based on the activities of BIDV Hai Ba Trung branch and some others in the Hai Ba Trung district, Hanoi, from 2008 to 2011

The study's data, collected between 2008 and 2011, reflects the conditions of BIDV Hai Ba Trung branch prior to significant changes in 2012 Consequently, the evaluation of the branch's performance is relevant only for 2011 and may not accurately represent its current status.

This study employs a mixed-methods approach, utilizing both quantitative and qualitative research techniques It analyzes secondary data gathered from diverse sources, including online platforms, academic journals, and annual reports from the BIDV – Hai Ba Trung branch, covering the period from 2008 to 2011.

The study employs various methodologies, including inductive and deductive approaches, along with summary, comparison, and statistical analysis, all enhanced by the use of illustrative figures and tables.

The study includes four main chapters

Chapter 1: Introduction – This chapter introduces some main characteristics of the thesis including the background, aims, scope and methods of the study as well as research questions

Chapter 2: Theoretical background – This chapter provides a general knowledge about competition, competitiveness, Five Forces model of Porter and especially, how to apply this model in evaluating the competitive position of a firm or a commercial bank

Chapter 3: Data analysis and implications - It is the most important part of the study in which the competitive position of BIDV Hai Ba Trung branch is analyzed basing on the Porter’s model

Chapter 4: Recommendations and Conclusion - In this chapter, some strategies and recommendations are suggested in order to improve the competitiveness of BIDV Hai

RESEARCH QUESTIONS

The study was done to answer the two following questions:

(1) What is the current intensity of competitiveness of BIDV Hai Ba Trung branch?

(2) What should the branch do to improve its competitiveness?

SCOPE OF THE STUDY

The study is conducted only based on the activities of BIDV Hai Ba Trung branch and some others in the Hai Ba Trung district, Hanoi, from 2008 to 2011

The study's data, collected between 2008 and 2011, reflects the conditions of BIDV Hai Ba Trung branch prior to significant changes in 2012 Consequently, the findings are only relevant to 2011 and may not accurately represent the current status of the branch.

METHODS OF THE STUDY

The study employs a mixed-methods approach, integrating both quantitative and qualitative research techniques It utilizes secondary data gathered from diverse sources, including online platforms, academic journals, and annual reports from BIDV – Hai Ba Trung branch, covering the period from 2008 to 2011.

The study employs various methodologies, including inductive and deductive approaches, alongside summary techniques, comparative analysis, and statistical evaluation, all enhanced by the use of illustrative figures and tables.

OUTLINE OF THE THESIS

The study includes four main chapters

Chapter 1: Introduction – This chapter introduces some main characteristics of the thesis including the background, aims, scope and methods of the study as well as research questions

Chapter 2: Theoretical background – This chapter provides a general knowledge about competition, competitiveness, Five Forces model of Porter and especially, how to apply this model in evaluating the competitive position of a firm or a commercial bank

Chapter 3: Data analysis and implications - It is the most important part of the study in which the competitive position of BIDV Hai Ba Trung branch is analyzed basing on the Porter’s model

Chapter 4: Recommendations and Conclusion - In this chapter, some strategies and recommendations are suggested in order to improve the competitiveness of BIDV Hai

THEORETICAL BACKGROUND

THEORETICAL BACKGROUND OF COMPETITION

The concept of competition is prevalent across various sectors, including economics, trade, regulation, politics, military, and sports It is frequently discussed in specialized magazines, economic forums, and public media, attracting diverse perspectives Consequently, it is not surprising that numerous definitions and interpretations of competition exist.

Competition in economics refers to individuals and firms striving for a larger market share to buy or sell goods and services According to Smith (2005), competition effectively allocates productive resources to their most valued uses while promoting efficiency In the business context, competition involves two or more parties independently working to attract a third party's business by providing the most favorable terms.

Competition, as defined by Porter (1998), involves capturing market share from rivals and aims to achieve profits that exceed the average profitability of a firm This competitive dynamic ultimately influences a firm's average profitability and can lead to significant changes, including a reduction in prices.

Basing on the nature of competition in the market, Brue (2005) classified competition into four types including perfect (pure) competition, imperfect (monopolistic) competition, oligopolistic competition and monopoly

Perfect competition is defined as a market where economic forces operate without interference, characterized by several key conditions In such a market, both buyers and sellers act as price takers, there is a large number of firms, and no barriers to entry exist Additionally, the products offered by firms are identical, complete information is available to all participants, and firms aim to maximize their profits.

Imperfect or monopolistic competition refers to an industry structure where many rival firms offer products that are similar but not identical substitutes This market type shares a key characteristic with perfect competition: the absence of significant barriers that hinder firms from entering or exiting the market.

Oligopolistic competition refers to a market structure dominated by a few large firms that supply the entire market, where significant cost advantages arise from large-scale operations (Frank & Bernanke, 2009).

Monopolistic competition is defined as an industry structure characterized by a large number of small firms that provide products which, while similar, are not perfect substitutes for all consumers This market dynamic allows for differentiation among products, giving consumers a variety of choices.

THEORETICAL BACKGROUND OF COMPETITIVENESS

Competitiveness remains a contentious topic in economics and business, sparking debate among economists for years Generally, the World Economic Forum (2007) defines competitiveness as the ability and performance of a firm or country to effectively sell and supply goods and services within a specific market.

Competitiveness can be classified into three levels including national competitiveness, firm competitiveness and product and service competitiveness

The Organization for Economic Cooperation and Development (OECD) defines a nation's competitiveness as its ability to produce goods and services that succeed in international markets under free and fair conditions, while also ensuring the long-term growth of real incomes for its citizens.

The World Economic Forum (WEF) defines national competitiveness in its Global Competitiveness Report as the combination of institutions, policies, and factors that influence a country's productivity levels.

Competitiveness at the business or firm level refers to the capability to effectively design, produce, and market goods and services According to the World Competitiveness Report (D’Cruz and Rugman, 1992), this involves creating a more appealing combination of price and non-price attributes compared to competitors.

In the United Kingdom, the Department of Trade and Industry (DTI) (as cited in Budd

Competitiveness in a firm, as defined by Hermis (2004), refers to its capability to deliver the appropriate goods and services with optimal quality, pricing, and timing This involves fulfilling customer needs more efficiently and effectively than competing businesses.

According to Fujimoto (2001), product and service competitiveness refers to the ability of a company's individual products or product groups to meet the needs of current customers while also appealing to potential customers.

A bank serves as a crucial financial intermediary, providing a diverse array of services such as credit, savings, and payment solutions It plays a vital role in the economy by performing a comprehensive range of financial functions, making it one of the most versatile business entities.

According to Rose (2001), commercial bank is a type of bank that sells deposits and makes loan to businesses and individuals

In according to Law No.47/2010/QH12 of June 16, 2010, on Credit Institutions:

A commercial bank is a financial institution that engages in a variety of banking operations and other business activities for profit These banking operations include services such as accepting deposits, extending credit, and facilitating account payments.

Commercial banks are specialized firms focused on profitability, requiring them to implement various strategies to deliver high-quality products and services at competitive prices Their competitiveness is defined by the ability to create and leverage unique advantages that fulfill customer needs, distinguishing their offerings from other banks in the market By doing so, commercial banks can enhance their profitability, prestige, reputation, and overall market position.

2.2.3.2 Factors influencing the competitiveness of a commercial bank

According to Nguyen (2008), the competitiveness of a commercial bank is affected by both external and internal factors

The emergence of new commercial banks significantly influences the competitive landscape for established banks, posing a threat of market share fragmentation Additionally, existing banks often lack insights into the strategies and capabilities of these new entrants, further intensifying the competitive challenge.

Existing commercial banks serve as key competitors that drive innovation and technological advancements within the banking sector Their presence motivates banks to enhance service quality, positioning them to achieve a competitive edge and succeed in the marketplace.

The third external factor influencing banks is their customers Depositors seek high interest rates, while borrowers aim to minimize borrowing costs This creates a conflict for banks as they strive to balance profitability with customer satisfaction.

The emergence of new financial products from intermediaries has diversified options for customers, resulting in a reduced market share for commercial banks.

Internal factors significantly impact a bank's competitiveness, including the managerial effectiveness of bank leaders, the size of its capital, and its overall financial health Additionally, the qualifications of the staff and the bank's reputation and prestige play crucial roles in shaping its market position.

THEORETICAL BACKGROUND OF PORTER’S FIVE FORCES MODEL 8 1 The Five Competitive Forces model of Porter

Michael Porter's famous Five Forces model provides a simple perspective for analyzing and assessing the competitive strength and position of a corporation or firm organization

Michael Porter, an American born in 1947, initially graduated with a degree in aeronautical engineering before earning a doctorate in economics from Harvard University He is currently a university professor at Harvard Business School In 1985, Porter expanded his focus to national economies by joining President Ronald Reagan's Commission on Industrial Competitiveness.

Porter's groundbreaking book, *Competitive Strategy* (1990), authored in his thirties, quickly became an international bestseller and is widely regarded as a seminal work in corporate strategy Published in nineteen languages and reprinted nearly sixty times, it transformed the mindset of business leaders and continues to serve as a preferred guide for strategic managers globally.

Porter’s innovative thinking is complemented by his talent for simplifying complex concepts, exemplified by his Five Forces model This model allows for the analysis of market factors, enabling strategic assessments of a supplier's competitive position within a specific market.

Many economists regard Porter's model as a valuable tool for analyzing competitiveness Ormanidhi (2008) notes that this model effectively addresses a firm's competitive advantage and strategy, thanks to its popularity, clear structure, feasibility, simplicity, and general applicability Additionally, it complements two other primary approaches in strategic analysis, as highlighted by Simosko (2008).

Porter’s Five Forces model provides a solid framework for thinking through business strategies and a way of understanding the trends, opportunities and challenges faced by the company and the industry

Porter's model has been utilized to assess the competitiveness of various industries, including Tanzania's banking sector (Gabriel, 2006), Bangladesh's ceramic industry (Jahan, 2010), and the National Basketball Association (Schinietz, 2005).

Porter's Five Forces model, introduced in 1998, identifies five key competitive forces that shape industry dynamics: the bargaining power of suppliers, the bargaining power of buyers, the threat of potential entrants, the threat of substitutes, and the rivalry among existing firms.

Figure 2.1: Forces driving industry competition

2.3.2 Characteristics of five competitive forces of Porter’s model

Suppliers play a crucial role in providing materials and products to various industries, significantly affecting a company's profitability through the costs of raw materials and components When suppliers possess high bargaining power, they can influence the industry by raising prices, thereby capturing a portion of the industry's profits Analyzing the bargaining power of suppliers involves considering several key determinants that impact their influence on businesses.

Differentiation of inputs refers to the unique characteristics that various suppliers offer for inputs that serve similar functions When suppliers present a higher degree of differentiation, they gain increased bargaining power in the market.

The availability of substitute inputs refers to the ease of switching to alternative suppliers or similar alternatives When there are many close substitutes, the bargaining power of suppliers diminishes, leading to more favorable conditions for buyers.

Supplier concentration refers to the level of competition among suppliers within an industry Typically, a higher concentration indicates fewer suppliers, which grants them increased control over pricing Consequently, greater supplier concentration often translates to enhanced bargaining power for suppliers.

The cost of inputs from a specific supplier relative to the total revenue in the supplier's industry significantly influences bargaining power When a firm spends less on a supplier's products, it often indicates that the supplier holds greater bargaining power Conversely, as a buyer's expenditure with a supplier decreases, the buyer's importance diminishes, resulting in reduced bargaining power in negotiations.

Buyers, whether individuals or organizations, play a crucial role in shaping industry demand by exerting pressure on prices and quality They negotiate for better deals and services, often leveraging competition among suppliers to their advantage Several key factors influence the power of buyers in the market.

Buyer concentration versus firm concentration highlights the relationship between the concentration levels in a buyer's industry and your own industry When buyers' industries are more concentrated than your industry, they possess greater bargaining power.

Buyer volume refers to the total number of product units purchased by a buyer from all sources When buyer volume exceeds the quantity purchased from your business, it indicates that buyers have greater bargaining power.

Thirdly, buyer information is the states of information buyers have about your industry The more information buyers have about your industry the more bargaining power buyers have

Fourthly, the substitute product means the number and closeness of substitutes available for your product The greater the number of available substitutes is, the more bargaining power buyers have

The price of a product in relation to total expenditures significantly influences its demand elasticity When buyers allocate a larger portion of their overall spending to a specific product, the price elasticity of demand increases, granting consumers greater bargaining power.

ANALYSIS AND IMPLICATIONS

IMPLICATIONS

On the basis of the above analysis, the strengths, weaknesses, opportunities and challenges of BIDV Hai Ba Trung branch can be evaluated, and then the competitiveness will be estimated

Since its inception, the Hai Ba Trung branch has benefited from the strong leadership of BIDV, which has provided extensive support in staff training and capital provision This backing allows the branch to utilize BIDV's modern technology to enhance its products and services, bolstering its reputation and customer loyalty The branch's qualified young staff deliver enthusiastic service, ensuring customer comfort and satisfaction Its strategic location near numerous offices and universities further attracts a diverse clientele Additionally, as a state joint stock commercial bank, BIDV and its Hai Ba Trung branch receive greater governmental support compared to other institutions.

Despite being established nearly four years ago, BIDV Hai Ba Trung is still regarded as a young branch facing significant challenges The intense competition from established branches in the area, which have built strong relationships with local companies and organizations, makes it difficult for BIDV Hai Ba Trung to attract new customers Additionally, the aftermath of the global economic crisis has led to financial struggles for many small and medium enterprises—key clients for the branch—further hindering its customer development efforts.

Following the global crisis, Vietnam's economy has shown signs of recovery, with inflation being effectively controlled by 2012 In response, the State Bank of Vietnam (SBV) has lowered loan interest rates to attract more customers Additionally, upcoming restructuring within the banking system is expected to enhance operational efficiency By collaborating with other branches within the BIDV system and partnering with companies, banks can expand their market share and increase profitability.

The BIDV Hai Ba Trung branch faces significant challenges due to fluctuating interest rates, necessitating constant adaptation to new policies that can disadvantage the bank Additionally, as the branch engages in the WTO, it confronts increased competition from foreign banks, which possess robust financial resources and highly skilled professionals, predicting a competitive landscape ahead.

Conclusion of competitiveness of BIDV Hai Ba Trung branch

Applying the Porter’s model to analyze the competitive position of BIDV Hai Ba Trung branch in the study has helped the researcher to draw out some findings

The BIDV Hai Ba Trung branch faces intense competition due to low product differentiation, sluggish growth in the banking sector, and minimal switching costs for customers This competitive pressure necessitates the branch to adopt effective strategies in administration, technology, promotion, and marketing while expanding its network to enhance performance and maximize profits.

The threat posed by new banks to the BIDV Hai Ba Trung branch is minimal, as foreign banks face limited advantages in entering the Vietnamese banking sector Additionally, domestic banks find it impractical to expand their branch networks under current conditions Overall, the impact of new entrants on this particular branch remains low.

The threat of substitutes in the banking sector is relatively low, as customers continue to prefer the safety and convenience of deposits and credit offered by established branches However, to attract new customers and retain existing ones, it is essential for the branch to enhance and diversify its product offerings.

The suppliers of the branch hold a medium level of bargaining power, primarily due to depositors who significantly influence capital supply While depositors possess high bargaining power, other suppliers like BIDV and the credit market have lower power, as the branch can easily secure capital from these alternatives Consequently, the overall supplier power remains moderate for the branch.

The bargaining power of customers at the BIDV Hai Ba Trung branch is moderate Despite having numerous banking options and low switching costs, the branch continues to see an increase in its customer base The diverse range of customer types further mitigates the impact of customer bargaining power on the branch's operations.

In summary, the BIDV Hai Ba Trung branch demonstrates strong competitiveness, maintaining a solid position despite intense competition from other branches While the impact of new entrants and substitute threats is minimal, the branch faces medium bargaining power from both suppliers and customers To sustain its success, it is crucial for the branch to enhance its competitiveness further.

RECOMMENDATIONS AND CONCLUSIONS

RECOMMENDATIONS

To achieve its goals from 2010 to 2015 and enhance competitiveness, BIDV Hai Ba Trung branch must focus on key strategies such as product differentiation, expanding its distribution network, improving staff quality, and leveraging technology.

The capital mobilization should be raised by two sources from both inhabitants in Hai

Ba Trung district offers opportunities for corporations to enhance their marketing efforts and engage with local residents The branch can focus on attracting high-deposit customers through personalized services while fostering relationships with businesses by introducing payment deposit options Additionally, the branch can optimize capital utilization by providing services such as salary payments and utility prepayments via electronic cards or ATMs.

Product diversification is an effective strategy for raising capital, as it allows businesses to cater to various customer needs By offering distinct deposit products, BIDV Hai Ba Trung branch can attract a wider range of depositors and enhance customer satisfaction Introducing innovative and unique features in their deposit offerings will help differentiate their products from those of other branches, ultimately driving growth and success.

The effective mobilization of capital should leverage technological applications, while also ensuring that officials excelling in capital mobilization and customers with substantial deposits receive timely recognition and incentives It is essential to set specific targets for each department and official to enhance accountability and performance in capital mobilization efforts.

BIDV Hai Ba Trung branch aims to diversify its credit offerings—long, short, and medium-term—focused on facility construction and national product development, in alignment with government guidelines By proactively targeting customers based on government investment projects and identifying key sectors, the branch can enhance its credit market share and investment opportunities.

To effectively improve credit, it is essential to implement credit control and settle bad debts Maintaining delinquency within appropriate limits is crucial for ensuring safety in credit activities.

To enhance credit information, it is essential to regularly gather data on customers and social and economic development projects By doing so, the branch can effectively implement tailored incentives and diversify credit products to meet the specific needs of different customer segments.

Product differentiation enhances the competitiveness of BIDV Hai Ba Trung branch To improve product and service quality, the branch should focus on technology application and ISO process operations Expanding foreign exchange activities, becoming an international card payment agency, and developing POS, Homebanking, and Internet banking services will support product diversification Additionally, greater emphasis on retail banking is essential, particularly for officials and local residents By thoroughly researching and analyzing customer demands, the branch can effectively launch suitable products and services.

The branch should conduct thorough research to assess the economic potential, customer demand for banking services, and competition within Hai Ba Trung district This analysis will enable the establishment of an appropriate branch network New transaction offices and savings counters may be launched if the evaluation indicates they will operate efficiently and generate profit for the branch.

The qualification of human resources is crucial for the effective operation of any branch, as all strategies for enhancing competitiveness are developed and executed by the staff To elevate the quality of personnel, targeted training and development initiatives are essential.

BIDV Hai Ba Trung branch should regularly conduct training courses to enhance staff professional skills and creativity Additionally, a fair treatment system should be established for officials who excel in their duties and contribute significantly to business results, with salaries reflecting the complexity and risks of each role Recruitment and promotions must be adequately addressed to maintain optimal staffing levels, ensuring at least one chief and one vice chief in each transaction office Furthermore, the branch should evaluate officials' abilities and appropriately rearrange positions to leverage their strengths effectively.

The BIDV Hai Ba Trung branch should prioritize technology as a crucial element in the development of its banking products and services Investing in advanced technology is an effective strategy to boost the branch's competitiveness and meet customer needs Additionally, acquiring management and administration software that integrates seamlessly with the modern banking system and connects with other branches is essential for operational efficiency.

To effectively meet the diverse needs of customers, the branch must prioritize understanding their requirements and preferences, allowing for the provision of tailored products and services By categorizing customers based on their characteristics, the branch can develop targeted strategies for engagement An efficient customer service department is essential, as it must be prepared to assist customers with inquiries and provide product information to enhance their experience Additionally, the branch should actively help customers assess their business strengths, weaknesses, and financial situations to select appropriate services Looking ahead, expanding the branch network will create further opportunities to connect with customers.

BIDV Hai Ba Trung branch embraces the motto "the success of the customer is the success of the bank," focusing on a customer-centric strategy that fosters strong, reliable credit relationships with its clients.

CONCLUSIONS

In the light of findings, the researcher managed to answer the two research questions

The BIDV Hai Ba Trung branch demonstrates a strong competitive position, facing significant rivalry from existing branches while experiencing low threats from new entrants and substitutes The bargaining power of suppliers and customers has a medium impact on the branch's operations With its high-quality staff and strong brand recognition, the competitiveness of BIDV Hai Ba Trung branch is assessed positively.

To boost competitiveness, the BIDV Hai Ba Trung branch should adopt comprehensive strategies aimed at enhancing product quality, diversifying offerings, advancing technology, and fostering staff development.

Classification of companies based on nature of competition (2006) Retrieved May,

2012, from: http://valueinvestorindia.wordpress.com/2006/12/13/classification-of- companies-based-on-nature-of-competition/

Brue, M.C (2005) Microeconomics New York: The McGraw – Hill Companies

Budd, L., & Hermis, A.K (2004) Conceptual framework for regional competitiveness (pp 1015 – 1028) United Kingdom: Carfax publishing

D’Cruz, J., & Rugman, A (1992) New compacts for Canadian competitiveness

Frank, H.A., & Bernanke, B (2001) Principles of Microeconomics New York: The

Gabriel, O.E (2006) Application of Porter’s five forces framework in the banking industry of Tanzania: Determine, Develop and Deliver Competitively IMS

Jahan, N (2010) Ceramic industry of Bangladesh: A perspective from Porter’s Five

Force model Retrieved May, 2012, from: http://www.banglajol.info/index.php/JBT/article/view/9983/7416

Nguyen, T.T (2008) explores the competition among commercial banks in Vietnam, analyzing both theoretical frameworks and practical implications The study highlights the evolving landscape of the banking sector in Vietnam, emphasizing the challenges and strategies banks face in a competitive environment By examining various factors influencing bank competition, the article provides insights into the effectiveness of different approaches adopted by Vietnamese banks This research serves as a valuable resource for understanding the dynamics of the commercial banking industry in Vietnam.

Omanidhi, O (2008) Porter’s model of generic competitive strategies: an insightful and convenient approach to firms’ analysis Retrieved from May, 2012, from http://findarticles.com/p/articles/mi_m1094/is_3_43/ai_n29477451/?tag=conten t;col1

Porter, M (1998) Competitive Advantage - Creating and Sustaining Superior

Performance New York: A Division of Simon and Schuster.

Ngày đăng: 18/12/2023, 20:24

TỪ KHÓA LIÊN QUAN

TÀI LIỆU CÙNG NGƯỜI DÙNG

TÀI LIỆU LIÊN QUAN

w