BCG Growth-Share Matrix

include in the star while union bank of India is in cash cow

Hdfc bank interested in increasing their market share but they want to grow profitably.

Poters five forces model .

investment firms.by offering better exchange rates. Threat of New Entrants. The suppliers of capital might not pose a big threat. Another trend that poses a threat is companies offering other financial services. Banks offer a . If a person has a mortgage. 3. remember that the possibility of a mega bank entering into the market poses a real threat. What would it take for an insurance company to start offering mortgage and loan services? Not much. when analyzing a regional bank. more services. credit card. etc. it can be extremely tough for that person to switch to another bank.work extremely hard to get high-margin corporate clients. and exposure to foreign capital markets . Power of Suppliers. On the other hand. but one major factor affecting the power of buyers is relatively high switching costs. but many people would still rather stick with their current bank. because it is a good source of fee-based revenue. but the threat of suppliers luring away human capital does. such as internet bill payment. there is the chance that person will be enticed away by bigger banks. banks try to lower the price of switching. Availability of Substitutes. Financial institutions . The average person can't come along and start up a bank. Banks are fearful of being squeezed out of the payments business. on which entrepreneurs can capitalize. If a talented individual is working in a smaller regional bank. checking account and mutual funds with one particular bank. but there are services. Also. car loan. large corporate clients have banks wrapped around their little fingers. 4. The individual doesn't pose much of a threat to the banking industry. 2. there are plenty of substitutes in the banking industry.Porter's 5 Forces Analysis 1. As you can probably imagine. Power of Buyers. In an attempt to lure in customers.

why would anyone want to get a car loan from the bank and pay 5-10% interest? 5. chances are there is a non-banking financial services company that can offer similar services. If car companies are offering 0% financing. but this also causes banks to experience a lower ROA. banks are seeing competition rise from unconventional companies. mutual funds or fixed income securities. The financial services industry has been around for hundreds of years and just about everyone who needs banking services already has them. preferred rates and investment services. we're likely to see more consolidation in the banking industry. but whether it is insurance. Competitive Rivalry. banks must attempt to lure clients away from competitor banks. They do this by offering lower financing. On the lending side of the business. Because of this. In the long run.suite of services over and above taking deposits and lending money. The banking sector is in a race to see who can offer both the best and fastest services. Sony (NYSE: SNE). They then have an incentive to take on high-risk projects. General Motors (NYSE:GM) and Microsoft (NASDAQ:MSFT) all offer preferred financing to customers who buy big ticket items. World Class Indian Bank . The banking industry is highly competitive. MISSION I. Larger banks would prefer to take over or merge with another bank rather than spend the money to market and advertise to people.

2. HDFC Bank’s business philosophy is based on four core values such as:- 1. . Customer Focus. People. IV. 4.II. 3. To build sound customer franchises across distinct businesses Best practices in terms of product offerings. risk management and audit & compliance VISION STATEMENT OF HDFC BANK The HDFC Bank is committed to maintain the highest level of ethical standards. technology. Operational excellence. III. Product leadership. service levels. Positioning Strategy “Positioning is the act of designing the company’s offering and image to occupy a distinctive place in the target market’s mind. professional integrity and regulatory compliance. Benchmarking against international standards.

NPA of 0. Products have required accreditations. FIIs can buy its stock Higher profitability . AMC. A company’s differentiating and positioning strategy must change as the product. a company. A piece of merchandise. Lower response time with efficient and effective service. market. SWOT ANALYSIS OF HDFC BANK STRENGTHS     HDFC is the strongest and most venerable play on Indian mortgages over the long term. HDFC’s insurance. Besides the core business. a service. and competitors change over time. and real estate private equity businesses are also growing at a rapid pace and the estimated value of its investments/subsidiaries explains ~30% of HDFC’s market capitalization. But positioning is not what you do to a product. That is. an institution. or even a person. Superior customer service vs. Once the company has developed a clear positioning strategy. BPO. Positioning is what you do the mind of the prospect.Positioning starts with a product. higher net interest margin Better quality of assets. banking.4 per cent Free float available. HDFC has differentiated itself from its peers with its diversified network and revamped distribution strategy HDFC has been highly proactive in passing on the cost and benefit to customers. The management of the bank is termed to be one of the best in the country. Dedicated workforce aiming at making a long-term career in the field. you position the product in the mind of prospect. competitors Large share of low-cost deposits. it must communicate that positioning effectively.          High degree of customer satisfaction.

THREATS    Loss of market share to commercial banks and HFC’s Higher than expected increase in funding cost Risk of fraud and NPA accretion due to increase in interest rates and fall in property prices is inherent to the mortgage business . HDFC Bank anticipates major cost savings whilst maintaining high levels of customer service thanks to new enterprise software agreement.OPPORTUNITIES        Fast growing insurance business in the country. An applied research centre to create opportunities for developing techniques to provide added-value services. Unique partnership to create job opportunities for IFBI’s PGDBO students HDFC bank automates business processes with Staff ware. Could extend to overseas broadly Fast-track career development opportunities on an industry-wide basis.  HDFC Bank plans to set up a non-banking finance company (NBFC) to undertake fundbased activities. Untapped rural markets.

Varying and In-Convenient ECS dates. Could seek better customer deals.000 Opportunities   Threats    Profit margins will be good. Unlike Government Banks. High volume/low cost market is intensely competitive. an account needs a minimum balance of Rs.       Lack of infrastructure in rural areas could constrain investment. extend to overseas Legislation could impact.10. Lack of infrastructure in rural areas could constrain  An applied research centre to create opportunities for developing techniques to provide added-value services.  High volume/low cost market is intensely competitive. Vulnerable to reactive attack by major competitors   Fast-track career development opportunities on an industrywide basis. investment.  prevailing in the industry. Great risk involved Very high competition   New specialist applications. . Very high competition prevailing in the industry Extension overseas holds a lot of risk! Threat from credit card collections dept. Could broadly.

HDFC BANK also acquired the Japanese technique for smooth running of work and effective work place organization. They use some technique and methodology for smooth running of business. Five S S-1 S-2 SORT SYSTEMATIZE SEIRI SEITON . Five „S‟ Part of Kaizen is the technique which is used in the bank For easy and systematic work place and eliminating unnecessary things from the work place.HDFC BANK uses Kaizan technique Every successful organization has their own strategy to win the race in the competitive market.

All wastage is made visible. Everyone has to participate. Frequently Required Less Frequently Required Remove everything from workplace Junk . It is excellent way to free up valuable floor space.S-3 S-4 S-5 SPIC-N-SPAN STANDARDIZE SUSTAIN SEIRO SEIKETSU SHITSUKE BENEFIT OF FIVE “S”      It can be started immediately. (1) SORT:It focuses on eliminating unnecessary items from the work place. It segregates items as per “require and wanted”. Brings in concept of ownership. Five “S” is an entirely people driven initiatives.

It assign responsibility for doing various jobs and decide on Five S frequency. (4) STANDERDIZE:It focuses on simplification and standardization. It brings in the sense of ownership. (5) SUSTAIN:- .“A place for everything and everything in its place”. organize and arrange retrieval.n . It involves standard rules and policies.Wanted but not required Junk (2) SYSTEMATIZE:Systematize is focus on efficient and effective Storage method. It establish checklist to facilitate autonomous maintenance of workplace. (3) SPIC. It largely focuses on good labeling and identification practices.SPAN:Spic-n-Span focuses on regular clearing and self inspection. That means it identify. Objective: .

It brings in self. Sustain means regular training to maintain standards developed under S-4.discipline and commitment towards workplace organization.It focuses on defining a new status and standard of organized work place. HDFC BANK PRODUCT PORTFOLIO Products and services at a glance HDFC Bank mainly provides three kinds of banking services:    Personal Banking NRI Banking Wholesale Banking .

The Bank‟s data warehouse. . to bring about the clubbed results of „Customer Delight‟ and improved profitability.CRM The Bank has also integrated service quality objectives with the business objectives of the Bank. Customer Relationship Management (CRM) and analytics solutions have helped it target existing and potential customers in a cost effective manner and offer them products appropriate to their profile and needs.

Apart from reducing costs of acquisition. . The Bank has a number of business groups catering to various segments of its wholesale banking customers with a wide range of banking services covering their working capital. The Bank is committed to investing in advanced technology in this area which will provide cutting edge in the Bank‟s product and service offerings. cash management. term finance. trade services. foreign exchange and electronic banking requirements. this has also led to deepening of customer relationships and greater efficiency in fraud control and collections resulting in lower credit losses.

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