Marketing Banking Services In Bangladesh †Myassignmenthelp.Com

Question: Discuss About The Marketing Banking Services In Bangladesh? Answer: Introducation Banking services in Bangladesh is characterized as a highly competitive and highly regulated sector. Bangladesh has a good number of banks which are in operation indicating that the banking sector in the country is growing to be competitive day by day(Kathuria Mezghenni Malouche, 2016). With the global sabotages in the banking sector, the banking business organization are moving towards developing new products and services to meet the growing market and customer demands(Burg, 2006). However, the significant amount of regulations provided by the Bangladesh Bank avert the introduction of new products into the market. Moreover, the recent trends indicate that operating banks in Bangladesh are shifting from providing vanilla banking products to higher valued product and services, these new services are expected to meet the market demands as it allows the company to gain a market competitive advantage(Armstrong, Kotler, Harker, 2015). The involvement of banking sector in various financial events in Bangladesh is increasing every dawn making the country to be a business hub in the region. As the demand for financial services is increasing every day, the banking business organization are coming up with innovative ideas that result in new banking services and products. Since Bangladesh is a developing country, banking organizations are innovatively moving towards serving in a competitive field where all the banking organization is looking for better services and opportunities to provide to the customers(Babin Zikmund, 2015). Banking Sector in Bangladesh is one of the major key sectors that has contributed to economic development. The banking sector in the country is made of several existing and new market enterers to the market, the sector comprises four major categories of banks they include, Nationalized Commercial Banks, Specialized Banks, Private Commercial Banks and Trans-National Banks(Burg, 2006). The four categories of banks have played a vital role in the Bangladesh financial sector. Bangladesh Bank is the central bank that provides principal regulations to the banking sector in the country. Commonwealth Bank Commonwealth Bank of Australia is an Australian multinational bank started in 1911 by the Australian Government under the Commonwealth act of 2011. In 19120 to 1960, the bank operated as the principal central bank of Australia, the Australian Stock Exchange Markets later listed it in 1991(Grant, 2016). In 1996, Commonwealth Bank was fully privatized and decided to segment its operation and now operates in Asia-Pacific Regions. In 2016, the Commonwealth Bank of Australia reported revenues of AUD$24.58 Billion. Due to its growth, the organization has a focus to expand its market to Bangladesh that is now a growing business hub for the banking industry. Banking Industry analysis in Bangladesh An industry analysis is a market strategy that is used by a business organization to determine if they could want to enter products or services to a new market. The top executive of an organization has the mandate of carefully analyzing several elements of industry in order to determine the scale of operations in a new market(Armstrong, Kotler, Harker, 2015). The banking sector in Bangladesh grew since it the country independence in 1971, the government legalized all the banking organization that existed in the country. As the country economy is growing new banking organization started entering into the market(Kathuria Mezghenni Malouche, 2016). The government of Bangladesh has created favorable surroundings for the personal banking sector, which attracts many buyers to make investments in the financial market. Bangladesh has been doing thoroughly in private sectors in recent years(Molnr Lendvay, 2016). Previously handiest government banks were right here to serve the financial wishes of clients, but now varieties of services are offered by commercial banks which have been not viable before. Financial help is very important to develop all of the sectors that can be furnished via the relevant financial institution of Bangladesh. Central bank boosts industrial banks to finance increasingly within the agricultural sectors, prescribed drugs sectors. Government puts stress on these banks to provide loans to the Small business organization and individual persons. Business environment The business environment is defined as all the internal and external business factors that affect how a business function, including employees, management, supply and demand, business regulation and customers. Examples of business environment comprise the process of satisfying the customer demands in a particular market and political issues affecting the business functions(Nurse, 2016). PESTEL Analysis of Commonwealth Bank in Bangladesh PESTEL analysis is a business tool that is used to determine the external macro-environment that affects the all the business industries including the banking sector. PESTLE is an acronym of Political, Economic, Social, Technology, Environmental and Legal factors(Craig Douglas, 2005). Political factors Bangladesh is a country that has created a favorable business environment. The country has a strong political stability, the stability of a country acts as the foundation of a business environment. Commonwealth Bank should consider the political stability of Bangladesh. Economic factors The economic factors comprise the aspect that affects the economic growth of an organization. They entail the issues such as monetary policies, trade policies, and future trade agendas. The main objective of Central Bank of Bangladesh is to emphasize sustainability of economic and price stability. The Central Bank has presented a monetary policy framework that has created a greater resilience to the market this has allowed a business organization to achieve their desired goals and objectives. The Commonwealth Bank management should consider the economic factors such as trade policies, and monetary policies installed by the principal central bank(Grant, 2016). Social factors Social factors are those business aspects that relates to the way the people in the different market are living and their perception of a particular business. Bangladesh is a country that allows his citizens to get access to banking services, especially to young aged citizens who are believed to be vibrant and energetic economic pilots. Commonwealth Bank should advocate the element introducing banking products that will favor the social affairs of the Bangladesh citizens(Amin, Asadullah, Hossain, Wahhaj, 2017). Technology factors Bangladesh is a developing country with improved road networks, airlines transportations, and railway services. The developed transport infrastructure indicates that the country is well versed with new technological advancement in all the business industries including the banking sector. The should enter into Bangladesh banking industry with new technology in order to gain a competitive business advantage in the market(Mathews, Bianchi, Perks, Healy, Wickramase, 2016). Environmental factor The Commonwealth Bank should major introduce new administrative approaches of working with the Bangladesh government in protecting the environment. By being part of good environmental ambassadors, the bank is able to improve its reputations and gain loyalty from the government(Craig Douglas, 2005). Legal factors Legal factors consist of new laws and regulations that are introduced by the government. All business organization, including the Commonwealth Bank, should conduct business activities that are not above any principle of law. Market analysis Market analysis is explained as the process of understanding the market dynamic a particular business industry, it is described to be the attractiveness of the market to a particular business industry(Babin Zikmund, 2015). The market analysis is the primary strategic management approach that should be considered by any business organization, national companies including Commonwealth Bank should ensure that they implement on the substantial market analysis measure, which will steer toward accomplishing their mission and vision statements(Armstrong, Kotler, Harker, 2015). In understanding, the concept of regional business market analysis represents the vital information that involves conceptualizing different crucial aspects that affect the regional marketing decisions. The market analysis measures and framework should focus on the market size of Bangladesh banking industry as well as related aspect such as GDP and country economic growth of the country(Nurse, 2016). Competitive Analysis The competitive analysis of Commonwealth Bank in Bangladesh should focus on the process of providing banking portfolios that meet the growing market. The bank should consider facilitating competitive banking services that are accepted by a large-scale market. The company should contribute to the neutralization of concentrated market which is full of competitors such as Uttara Bank, Islamic Bank of Bangladesh and NCC Bank(Al-Ansaari, Bederr, Chen, 2015). Organizational Analysis While the Commonwealth Bank is a leader in the market, the most important aspects they need to consider is to provide quality banking products and services that are relevant to the market. customers are the main stakeholders for the company, they should be provided with quality bank products such as educational loans, real estate, mortgage, overdraft, and commercial. The bank should provide services such as online banking service, Inbranch services and card services(Andaleeb, Rashid, Rahman, 2016). SWOT Analysis SWOT analysis is a useful strategic management tool that is used by top organizational management to primarily identify and understand the strengths, weakness, opportunities and the threats that might affect operations of the business venture(Culp III, Eastwood, Turner, Goodman, Ricketts, 2016). Strengths Commonwealth Bank should take the credit on strengths that they have in the market. Since its inception in Australia, the bank is listed as the leading bank in the banking industry. The bank also has a well-diversified credit portfolio. Technology is an essential aspect that has contributed to the bank development, the bank has the emphasis on technology development. It has robust financial position and rations(Armstrong, Kotler, Harker, 2015). Weakness Commonwealth Bank is considered to be having a high independence of offshore borrowing. One of the major factors that affect the operations of Commonwealth Bank is the limited geographical diversity and the increased operating expenses(Culp III, Eastwood, Turner, Goodman, Ricketts, 2016). Opportunities Commonwealth Bank has a high expansion into different markets in the world-banking sector. The bank is also advocated to introduce the Customer Assistance Line in Bangladesh during their operations(Bryman Bell, 2015). Threats Bangladesh government has introduced the measure of phasing guarantees that are given to the operating banks in the country. However, the bank should expect business pinch from the fragile business environment in Bangladesh and Asia- Pacific Region. Conclusion Commonwealth Bank is reported to be a banking organization that has segmented its operation to different market in the world, including Bangladesh which a growing business hub for different business sectors. The bank provides services and products that are considered to meet the growing market. The organization has consider the essence of conducting the market research, conducting the marketing research allows the company to identity the demand and supply in the market allowing the company to provide quality services that meet the customer demands. SWOT and PESTEL analysis tools are the strategic management tools that the organization is advocated to consider they enter into new markets, including Bangladesh. References Al-Ansaari, Y., Bederr, H., Chen, C. (2015). Strategic orientation and business performance: An empirical study in the ASIA context. Management Decision, (Vol. 10). Amin, S., Asadullah, M. N., Hossain, S., Wahhaj. (2017). Eradicating Child Marriage in the Commonwealth: Is Investment in Girls Education Sufficient?. The Round Table, 106(2), 221-223. Andaleeb, S., Rashid, M., Rahman, A. Q. (2016). A model of customer-centric banking practices for corporate clients in Bangladesh. International Journal of Bank Marketing, 34(4), 458-475. 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