Strategy of ICICI

8/13/2019 Strategy of ICICI

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Roll No.- 8,25,35,44


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Path map for presentation

Porters 5

ForcesPESTLEAnalysis

KSF

StrategicGroups

IndustryAnalysis

Resourcesandcapabilities

CompetitiveStrategy

InternalAnalysis

StrategicPositioning

and trade-offs

ValueChain

Analysis

Tetra-Threat

FrameworkAnalysis


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porters 5 forces: Banking industry

Threat of New Entrant

Low:Regulatory policies,

High capital requirement,

and licenses

Bargaining Power of

Supplier

Low-Moderate: Few

alternatives, RBI rules and

regulations, and

concentration of suppliers

Bargaining Power of

Buyer

High: Number of

alternatives, low switching

cost, less product

differentiation

Threat of Substitutes

High: Many substitutes-

MF, Post offices, Stock

market, VCs & Angel

Investors; Change in attitude

of customer.

Rivalry among

Competitors

High: Large no. of banks, low

switching cost, Homogeneous

products/services, High exit

barrier


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PESTLE AnalysisPolitical and Legal Factors:

Regulated by RBI and Govt. of

India

Entry of new entrant through

licenses Max. FDI allowed: 74%

Consolidation of PSBs

RBI formulates best practices in

areas of provisioning, risk

management, credit delivery, anddisclosures.

Economic Factors:

Various factors- interest rates,

per capita income, GDP, etc.

Banking sector follows economic

condition of the country. High growth rate results in high

advances and low NPA levels.

Repo rate affects cost of

advances and deposit rates.


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PESTLE AnalysisSocial Factors:

People are risk averters.

Change in lifestyle of youth.

Increase in demand for

specialized banking.

Population and literacy rates

Technology Factors:

Technology advancements

enables product innovation.

ATMs, plastic cards, Net

Banking, Phone Banking, Mobile

Apps.

Social media: new platform

Environmental Factors: Go paperless initiatives

CSR activities.


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KEY SUCCESSFUL FACTORS

Technology

Quality of Assets

Brand Image

Skilled Human Resource

Product Innovation

Scalability of Branches

Transparency of Public Disclosures and Best Practices


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Strategic Groups

P

r

o

fi

t

s

H

i

g

h

State Bank of India

Bank of India

Punjab National Bank

Bank of Baroda

HDFC Bank

ICICI Bank

Union Bank of India

Indian Overseas Bank

Axis Bank

L

o

w

Indian Bank

Syndicate Bank

Standard Chartered

Citi Bank

HSBC

Development Credit Bank

PSBs Foreign Banks Domestic Private Banks


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INTERNAL ANALYSIS


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Resources and CapabilitiesResources Capability Relation to KSF

Large domestic distribution

network of branch (2752

branches and 9006 ATMs)

and non-branch channels

High market penetration;

largest private bank in India

Scalability of

Branches

Large employee base and

talent poolSuperior customer service

Skilled Human

Resource

Subsidiaries, branches, and

representative offices in 19countries. Application called

Money2India for easy

remittance to India

Ability to service NRIs,

international customers

Scalability of

Branches


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Resources and Capabilities

Resources Capability Relation to KSF

Technology pioneer;

Customized products and

services

Ability to attract and retain

new customers. Takes the bank

to customer-friendly areas like

Facebook and mobile phones.

Technology and

Product Innovation

High quality of assets

Internal credit rating system to

build a customer database and

predict behavior, divesting

non-performing assets

Lower NPAs

Investment in nation-building

through financial inclusion

and infrastructure financing

Microfinance through

partnerships with NGOs.Provides crop loans,

equipment loans, etc. Set up

4653 rural customer service

points and 1000 branches

Brand Image


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COMPETITIVE STRATEGY

Follows a 5C strategyCredit growth

CASA Mobilization

Cost optimization

Credit quality improvement

Customer centricity

It has also focused on Diversification strategy.


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VALUE CHAIN ANALYSIS


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VALUE CHAIN


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Strategy of ICICI

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