Monday, 29 September 2014

What Have I Learned Today part 4

today forum on GOALS just continues from the last week lecture about 5Porters. What is 5Porters??

5Porters is a framework to analyse level of competition within an industry and business strategy development. It draws upon industrial organization (IO) economics to derive five forces that determine the competitive intensity and therefore attractiveness of a market. ( source : wiki

In a forum, we were ask about 5Porters for financial service analysis in Malaysia and the attractiveness of this industry.

and here my answer, I donno weather im answering this correct or not..>0<


Malaysia has seen robust development of its financial markets over the past years. And what make it attractive is the developing of strong domestic institution while progressively opening up the financial services sector to greater competition by the government. Today, the banks have a strong capital position and the entire financial services system such insurance system boasts ample liquidity, which has provided a buffer against global economic volatility in the recent past. 

5 Porters Analysis:

New Entrance

- usually, the emerging of new entrance in financial market service is low compared to the entrance of market products.


- the products that usually offered to the public is identical therefore, it create an advantage for customer to demand in selecting the service providers.


- Bank Negara Malaysia (BNM) or depositors 


- financial service that offer the same products and services for similar target market

- conventional vs Islamic services offered


- online banking and transaction

- Islamic services offered much easy and convenient  products with a fixed interest and high dividend return.

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