GROUP-3, ASSIGNMENT-5

Contents Covered:
 Industry Selection: Banking Industry
 Company: HSBC LTD (Bangladesh Perspective)
 Business Model of HSBC
 4 I and Covid-19 Impact and Strategy
 GVC analysis of HSBC
 Triple Triangle Frame Work and SWOT Analysis
 Porter’s Five Forces Model of HSBC, Bangladesh
 Strategic Group Mapping Analysis
 Recommendations

ID NO’s
ZR1902004 ZR1902033
ZR1902014 ZR1902036
ZR1902024 ZR1802021
ZR1902025 RQ1803022
ZR1902028 RQ1802031
ZR1901012 ZR1703024
BUSINESS MODEL
CANVAS
HSBC HOLDINGS:
Vision:
We aspire to be one of the world’s Great Specialist Branding groups, driven by
commitment to our core philosophies and values

Mission:
Through an international network linked by advanced technology, a rapidly growing
e-commerce capability, HSBC provides a comprehensive range of financial services:
personal financial services; commercial banking; corporate, investment banking
and markets; private banking; and other activates.

Values:
Our values defines who we are as an organization and what makes us distinctive.
They are vital to fulfilling our purpose of helping businesses to thrive, economies to
prosper and people to realize their ambitions.
 HSBC BUSINESS MODEL CANVAS

Key Partners Key Activities Value Customer Customer

Proposition Relationship Segments
• Shareholders • Lending &
• Subsidiaries Borrowing • HSBC traditionally • Trust & • Large Corporates
• Logistics Partners • Risk Analysis has its presence Confidence • Middle Markets
• HR Partners • Global Market where the growth • Quality of • Medium
• Security Partners Ops is connecting Services Enterprise
• Depositors • Finance developing • Utilizing Global • International
• Borrowers • Asset countries to Network Subsidiaries
• Alliances Management developed • Supply Chain • High Net Worth
• Insurance countries and Financing Retail Customers
• Private Banking deals with Expertise
• R&D businesses having
• Marketing & international
Communications supply chain.
 HSBC BUSINESS MODEL
CANVAS
Cost Structure Key Resources Revenue Streams Distribution
Channels
• Cost of Deposits • Branch Across The Globe • Financing Fees,
• Cost of Off-shore • Global IT and Software Charges and Interest • Branches and Offices
Funds Setup Income Across The Globe
• Global IT and • Human Resources • Return on • E-services
Software Setup • Investors' and Depositors' Investments and • E-accounts.
• Global Operation Confidence Subsidiaries
Management Cost • Global Network • Consultancy Fees on
• R&D • Innovative Banking Asset managements
• Employees Products • Other Ancillary
• Facilities Services Fees
• Purchases
• Legal
• Taxes
• New Venture
IMPACT OF COVID-19 & 4 IR
th
 IMPACT OF 4I AND COVID 19 AND STRATEGIC
PRIORITIES (HSBC)
 Acknowledge Loss: loss should be accommodated
 Experience: as existence of 150 years experiencing
many pandemics.
 Global Observations: opportunity to observe  To address 4I bank adopt “A bank fit for future”
China Desktop model for WFH program
 Emphasis on resilient business model, innovation  Use of Robotics in international payment
and customer experience settlement and financing
 Moving from just in time model to just in case  Use of cognitive automation software in
model transaction processing.
 Email indemnity and encouraging online plat
form.
 Treating employee well key feature of resilient
business model
Triple Triangle Frame Work and
SWOT Analysis
 HSBC LIMITED
TTF
Connect Key Priorities Strategic Move Actions
Providing service to our customers first job
Emphasis on our core values (open,Depends on the customer feed back to
dependable and connected) improve
CULTURE Creating a conducive Connecting developed to developing nations.
learning and Strengthen Workplace safety & Separate safety team on each floors
(Enterprise collaborative work health in operation Providing health bulletin
level) environment. Improve learning and training to Introducing HSBC University
enhance service quality No fees for trade professional qualifications
Improve friendly work environment Diverse workforce
Feed back communication.
Helping customers to fulfil their
hopes and realize their ambitions. Target on improving market share
CUSTOMER Focus on customer
Deliver new and cost effective trade
(Industry growth is our financing solutions Sustaining the revenue growth
level) revenue drivers
Finding innovative ways to cater Improving return on RWA
customer services efficiently.
Technology Introducing new Leverage our size and strength to
and technology that embrace new technologies over a Billion dollar investment in new technology
Innovations creates the future of period of disruptive technological and innovations
the bank change.
(Macro level)
GVC analysis of HSBC
 GVC Elements in Porter's Value Chain at HSBC
Primary Activities
Inbound Logistics:
Develop strong relationships with suppliers as
their support is necessary to receive, store and
distribute the product.
Operations:
- Analyzing operational activities raises when
relevant products, and HSBC is doing the
process of this products in a strategic way
(deposit and loan) into the end product and
launch it in the market.
- It includes service operations. Analysis of
operational activities is important for
improving productivity, maximizing the
efficiency and ensuring the competitive
success of HSBC.
Outbound Logistics:
Activities that deliver the product to the
customer by passing through different
intermediaries.
Marketing & Sales:
- Highlight the benefits and differentiation points
of offered products to persuade the customers
- Strategies can either be push or pull in nature,
depending on the HSBC’s business objectives,
brand image, competitive dynamics and current
standing in the market.
Services:
- The pre-sale and post-sale services offered
by the HSBC will play an important role in
developing customer loyalty.
 GVC Elements in Porter's Value Chain at HSBC
Secondary Activities
Firm infrastructure
- HSBC can control the infrastructure activities to
strengthen the competitive positioning in the
market.
Human resource management:
- HSBC can analyze human resource
management by evaluating different HR
aspects
- to reduce competitive pressure based on
motivation, commitment and skills of its
workforce.
- by analyzing hiring and training costs with
their relative return.
Technology development:
- Technological integration in production,
distribution, marketing and human resource
activities requires HSBC to realize the
importance of technology development.
Procurement:
- The processes involved in purchasing the
items necessary for producing the finished
product.
- Carefully consider its procurement
activities to optimize the inbound,
operational and outbound value chain in
terms of banking industry.
Competitive Strategic Outcomes
Through Value Chain Analysis of HSBC
 Intellectual capital, assets, skills or distribution network tools to get a
competitive advantage for HSBC
 HSBC uses the operations, marketing and other relevant value chain activities
to avail the cost advantages
 The human resource, technology, infrastructure, service or other relevant
activities HSBC used to set the strong differentiation basis
 Using the value chain information to make modest advertising budget that can
reduce marketing costs and offer the product at an affordable cost.
 Extensive database development for effective marketing and Advanced
information system to get deeper customer insights
Porter’s Five Forces
Model of HSBC Bangladesh
Threat of New Entry in HSBC, Bangladesh Bargaining Power of Buyers in HSBC, Bangladesh
 Competitive Rivalry of
Threat of Substitutes in HSBC, Bangladesh
HSBC, Bangladesh
Strategic Group Mapping
Analysis
 Generic Strategy of HSBC, Bangladesh
•Differentiation Strategy

• Offering niche buyers something different and unique from rivals.

Lower Cost Differentiation

A broad cross-
section of buyers Overall Low-Cost Brand
Differentiation
Target Market

Leadership
Strategy Best Cost Strategy
Provider
Strategy Focused
Focused Low-
Cost Differentiation
A narrow buyer Strategy Strategy
segment
HSBC Consumer Banking
Primary focus on building deposit and making loans
from individuals.
 Minimum individual account opening deposit -
BDT10,00,000.
 Agreement with HSBC to open employee salary
accounts.
Unique Offers:
 Phone Banking: for any service and information:
call 16240
 Value added Service by Personal Internet
Banking: Save time by using Value Added Services
from HSBC Personal Internet Banking (PIB).
This feature is a FASTER and more convenient way
to apply for different HSBC products and services
anytime, anywhere
 Loans: Personal Loans, Home Loans and Other Life
style Benefits.
 HSBC Corporate Banking

> Deals with corporate clients, but at

present this bank only focusing some special
criteria. Unique Offers of HSBC Corporate Banking
 Give loans only to those companies that’s
annual sales is over USD 30M equivalent.
 The parent company banks with HSBC in
other countries.

HSBC always chooses a market niche where buyers have distinctive preferences,
special requirements and unique needs. Moreover it develops unique capabilities to
serve needs to its unique buyer segment. Like:
• Log in to PIB and select contact center
• Select send messages and select the desired service as the subject
• Fill the necessary details and send the message
• Geographic Uniqueness
• Specialized requirements of using and getting their services
In CONCLUSION, HSBC in Bangladesh follows only
Focused Differentiation Generic Strategy because,

 HSBC does not follow the Low Cost Provider Strategy as

its overall cost of every service is very high

 HSBC does not follow the Best Cost Provider Strategy as

it provides good services to its client but at an excellent cost.

 HSBC never follows Broad Differentiation Strategy as

from the very beginning this bank is very focused to provide
its services.
Market analysis and opportunity for Market analysis and opportunity
metropolis solution for city Drive
Strategic Group Mapping Analysis

Two main components considered as common tools

for crew mapping.
 Exceptional service quality: Guarantees an
exceptional level of security for
consumers and other services.

 Investment in security: all

Security measures guarantee
safety in all security measures.

Investment
Comparison of Strategic issues (Products, coverage and market segments)
Organization
Product and Service Diversity Geographic Coverage Market Segments Served
s
Wide Range of Corporate Banking and
HSBC trade financing solutions.
 Branches across Dhaka, Chittagong, EPZs  Corporate banking and select retail customers

Wide range of products offered under Much wider geographic coverage with over 100 Caters to local and multinational corporate houses; micro, small
Corporate, Consumer (Deposit and Loan branches across Dhaka, Chittagong, Khulna, and medium enterprises; individual deposit clients; individual
products) and SME Banking segments. Jessore, Rajshahi, Rangpur and Sylhet regions. borrowers of Consumer loan products; and NRB clients.
BRAC Bank
Hence BRAC is a direct competition for Hence BRAC is in a much better competitive  Hence BRAC is a direct competition for IDLC across these market
IDLC in terms of product offerings. position compared to IDLC in terms of segments.
  geographic coverage.
Wide range of products offered under Much wider geographic coverage with around
Caters to local and multinational corporate houses; micro, small
Corporate, Consumer (Deposit and Loan 100 branches across Dhaka, Chittagong, Sylhet,
and medium enterprises; individual deposit clients; individual
products), SME and Islamic Banking Khulna, Rajshahi, Comilla, Rangpur and Barishal
borrowers of Consumer loan products; and NRB clients.
City Bank segments. regions.
Hence CBL is in a much better competitive
Hence CBL is a direct competition for Hence CBL is a direct competition for IDLC across these market
position compared to IDLC in terms of
IDLC in terms of product offerings. segments.
geographic coverage.
Wide range of products offered under Caters to local and multinational corporate houses; small and
Much wider geographic coverage with over 70
Corporate, Consumer (Deposit and Loan medium enterprises (excluding micro enterprises); individual
branches across Dhaka, Chittagong, Sylhet,
products), SME and Investment Banking deposit clients; individual borrowers of Consumer loan products;
Eastern segments.
Khulna, Rajshahi, Rangpur and Barishal regions.
capital market investors; and NRB clients.
Bank Hence EBL is in a much better competitive
Hence EBL is a direct competition for Hence EBL is a direct competition for IDLC across these market
position compared to IDLC in terms of
IDLC in terms of product offerings. segments.
geographic coverage.
Wide range of products offered under
Corporate, Consumer (Deposit and Loan  Caters to local and multinational corporate houses; micro, small
Dhaka, Chittagong, Sylhet, Khulna, Rajshahi,
products), SME and Investment Banking and medium enterprises; individual deposit clients; individual
Rangpur and Barishal regions.
segments. Wide Range of Corporate borrowers of Consumer loan products; and NRB clients.
SCB Banking and trade financing solutions.

 Hence SCB is a direct competition for

HSBC in terms of product offerings.    
 Brand Image and investments in Product and Service
Organizations Marketing Communications
 Strong brand image and extensive
investment in marketing
HSBC communications initiatives In
Bangladesh
Strong brand image and extensive
Comparison investment in marketing
communications initiatives, compared quality.
of Strategic to IDLC.
BRAC Bank  
issues Hence although IDLC has a strong
brand, BRAC is in a much better
(Brand position compared to IDLC in terms of
marketing communications activities.
Image, Strong brand image and extensive
investment in marketing
communications initiatives, compared quality.
Service to IDLC.
City Bank Hence although IDLC has a strong
Quality and brand, CBL is in a much better position
compared to IDLC in terms of
Pricing marketing communications activities.
Strong brand image and extensive
Policy) investment in marketing
communications initiatives, compared quality.
to IDLC.
Eastern Bank Hence although IDLC has a strong
brand, EBL is in a much better position
compared to IDLC in terms of
marketing communications activities.
 Strong brand image and extensive
investment in marketing
SCB communications initiatives In
Bangladesh
 
Quality
Pricing Policy
 Low cost of fund, Efficient in terms of
 High product and service
quality
Offshore Financing and trade Dollar
financing.
High product and service
Much lower cost of funds, resulting is
lower lending rates offered to clients,
 
compared to NBFIs.
Hence BRAC is a direct
Hence it is difficult for IDLC to compete
competition for IDLC in this
regard.
with BRAC in terms of its pricing policy.
High product and service
Much lower cost of funds, resulting is
lower lending rates offered to clients,
compared to NBFIs.
Hence CBL is a direct
competition for IDLC in this
Hence it is difficult for IDLC to compete
with CBL in terms of its pricing policy.
regard.
High product and service
Much lower cost of funds, resulting is
lower lending rates offered to clients,
compared to NBFIs.
Hence EBL is a direct
Hence it is difficult for IDLC to compete
competition for IDLC in this
with EBL in terms of its pricing policy.
regard.
 Low cost of fund, Efficient in terms of
 High product and service
Offshore Financing and trade Dollar
quality
financing.
   So SCB is direct threat To HSBC
 Recommendations
 
Client necessity investigation and Core Activities Support Activities 
Administrative consistence
Credit hazard administration process
gathering  Operational chance administration
 planning, enhancement of   process
Market Development And Finance and Risk  Inward control
administrations
 Risk assessment
 Advancement of process and service planning 
Management World class tools for managing an
approaches  
account programming
 Decision bolster group
 Procedures and behaviors  Process mechanization
 Strong communicating.    High safety efforts
 Marketing and collaborations  Technological review


Disbursement process formation
 Customer administration and
dissension taking care of
 Deposit beginning
 Capital increase
Marketing And Sells  HR workforce arranging
Corporate  Honest enrollment and choice
 Employee preparing and advancement
Governance  Transparent execution examination
     Reward administration framework
 Career advancement and progression
Deposit Management arranging

 Borrowing administration   Human Resource  Accounting guidelines following BAS and

BFRS
 building of unrivaled resource Management  MIS basic leadership
portfolio    
 offering of credit administrations
Asset Management
 spreading of credits and
 
administrations
 Management of non-performing   Technological
resources Contribution to
Support
 Fund raisers riches boost Stakeholders
 
 Non-fluctuating payout proportion
 Recommendation

COVID RESPONSE Industry level GVC perspective TFF Perspective

• Use the experience •
More focus to service • For corporate the • Due to globalization
from other market excellence to earn trade international the more local
• Faster response to non-interest income operations can adopt corporates are
regulators as the interest celling international emerging at faster
measures to avoid is provided by the monitoring system. rate, HSBC needs
any compliance regulator: Bangladesh • Consumer banking include these
Bank segment can create segment for bigger
issues • Introduction of market share
Introduction of easier deposit
service and product procurement system • Enhance focus to
based businesses to from the local market financial
compete with the by using service technological
cost focused based products. innovation and
competitors implementation in BD
market.