BANK KEY INTERNAL ACTIVITIES
DBS bank internal activities include bargaining power, threats of new market entrants, and market rivalry. As such, Porter’s value chain model utilizes different forces from horizontal and vertical competition to exemplify the firm’s internal activities as perceived by different stakeholders. For instance, DBS bank has a low threat of new market entrants because the banking industry poses entry barriers due to the huge capital required to start the business[1]. Besides, the bank faces a medium threat of substitute products of service since the banking industry provides a wide range of services such as insurance and investment. The diagram below shows the primary activities articulated by the Porter’s value chain model.
Moreover, DBS bank is faced with a medium bargaining power from its consumers since clients are open to opening personal accounts with other banks. Therefore, the bank has stipulated on increasing customer loyalty by launching programs such as referral bonuses to increase the number of its customers. However, the suppliers’ bargaining power is high due to initiatives undertaken by the governments to stabilize their currencies[3]. As a result, DBS bank has embarked on a number of initiatives to safeguard its markets from unscrupulous individuals in the banking industry. Nevertheless, DBS bank faces high-level rivalry from other competing firms due to the increased intensity in the industry. Most banks in Singapore are offering incentives to customers who open bank accounts as a form of luring clients into the business.
Bibliography
Curry, Edward. “The big data value chain: definitions, concepts, and theoretical approaches.” In New horizons for a data-driven economy, pp. 29-37. Springer, Cham, 2016. Link: https://www.oapen.org/download?type=document&docid=1002241#page=47
Sia, Siew Kien, Christina Soh, and Peter Weill. “How DBS Bank Pursued a Digital Business Strategy.” MIS Quarterly Executive 15, no. 2 (2016). Link: http://search.ebscohost.com/login.aspx?direct=true&profile=ehost&scope=site&authtype=crawler&jrnl=15401960&AN=115879196&h=OnTFV7IOx%2FySeDQ4dv82EHCv96QonvoBtBIcFmmNwkPhLaiOgXBnSDQKcgzT73MIhHCsJAzGCEM0MsPqTewjuw%3D%3D&crl=c
[1] Curry, Edward. “The big data value chain: definitions, concepts, and theoretical approaches.” In New horizons for a data-driven economy, pp. 29-37. Springer, Cham, 2016. Link: https://www.oapen.org/download?type=document&docid=1002241#page=47
[2] Curry, Edward. “The big data value chain: definitions, concepts, and theoretical approaches.” In New horizons for a data-driven economy, pp. 29-37. Springer, Cham, 2016. Link: https://www.oapen.org/download?type=document&docid=1002241#page=47
[3] Sia, Siew Kien, Christina Soh, and Peter Weill. “How DBS Bank Pursued a Digital Business Strategy.” MIS Quarterly Executive 15, no. 2 (2016). Link: http://search.ebscohost.com/login.aspx?direct=true&profile=ehost&scope=site&authtype=crawler&jrnl=15401960&AN=115879196&h=OnTFV7IOx%2FySeDQ4dv82EHCv96QonvoBtBIcFmmNwkPhLaiOgXBnSDQKcgzT73MIhHCsJAzGCEM0MsPqTewjuw%3D%3D&crl=c