Competitor Profile • Objective: Learn and apply the tool of competitor analysis/

Question

Competitor Profile

• Objective: Learn and apply the tool of competitor analysis/profile to a current business situation. •

Pick one of your firm’s primary competitors.

• examples: First Community Bank of Joliet, Providence, USF Grad Studies.

Strategy study: Banking Industry, market, strategy

• Submit a competitive profile; approximately 2-3 single spaced pages. Bullet point or tabular format encouraged.

Perceptual Maps

• Objective: Learn and apply the tool of perceptual mapping to organize and communicate competitive positioning insights.

• Pick at least 4 competitors of your industry.

• Determine 3-5 key variables for mapping.

• See Situation Analysis PowerPoint slides 49-54.

• examples: First Community Bank of Joliet, Providence, USF Grad Studies. Strategy study: Banking Industry, market, strategy

• Submit at least 4 perceptual maps and a ½ page explanation for each map. The explanation should indicate your rationale for the relative position of each competitor.

Explanation / Answer

Competitive Profile Matrix

To establish a competitive analysis between any two or more firms in a given industry a Competitive Profile Matrix proves to be an essential strategic management tool.
This matrix shows a clear picture of the firm about their strong and weak areas relative to their competitors. The CPM score is measured on basis of industry’s critical success factors, each factor is measured on the same scale. Weights are assigned to every factor and the competitors are rated and weighed on the scale.

For the banking industry, we will be taking up ICICI bank and will be comparing it with its two HDFC Bank and Kotak Mahindra.
The critical factors that we have identified for this competitive comparison based on this industry are:
•   Financial position
•   Service quality
•   Online/ATM service
•   Workforce motivation
•   Customer loyalty
•   Market share

Financial Position: For any bank, under ratio analysis, Return on Assets provides a significant idea about the financial position. As per moneycontrol (Mar 2017) data, the return on assets of ICICI bank is 1.26%, HDFC bank is 1.68% and Kotak Mahindra Bank is 1.58%. This figures clearly shows HDFC leads in terms of financial position.

Customer Loyalty: Today, banks are expanding their reach and services to gain customer retention as much as possible. Customers are now interested to try and avail different online, mobile or net banking services provided by different banks. HDFC is taking various steps to connect with millennials through social media and hence lead to being the most social bank followed by ICICI and Kotak Mahindra and hence HDFC enjoys great customer loyalty.

Market Share: In the banking industry, market share is mainly highlighted by market capitalization. As per 2018 data, HDFC became the first Indian bank to cross 5 trillion market cap data. ICICI bank has a market cap of 1.91 trillion whereas Kotak Mahindra bank has a market cap of 2.48 trillion. HDFC has beaten ICICI bank by being the biggest private bank in India.

Service Quality
ICICI Bank

ICICI Bank strives to serve its customers. It employees an equal proportion of young males and females to attend to its customers. It has 24 hours toll-free customer care helplines active for various queries. It has dedicated helpline for all the states throughout the countries to better serve its customers in regional languages and quicker response time.
It has an online grievance redressal system in place that raises a Service Request Number against every ticket that is raised and it is addressed within 24 hours.
ICICI Bank has also laid down a Customer Grievance Redressal Policy. It has 14164 ATM machines place all over the country to serve its customers.
It provides great online assistance including services like internet banking, credit/debit card services, Pockets – a universal wallet system, private banking, insurance, investment assistance and so much more.

HDFC Bank

HDFC Bank has a network of 12260 ATM across the country. It provides equivalent services like the card, banking, insurance, personal banking.
HDFC has a customer care helpline available 27x7 hours throughout the country.
However, it focuses mainly on its high-end customers. Its customer care services are often regarded as poor.

Kotak Mahindra Bank

Kotak Mahindra has 2163 ATM branches all over the country. It has a good phone banking service, customer care helplines and online banking services.
It has a grievance redressal system in place. It offers services like SME Banking, Personal banking, NRI banking along with the services that are offered by its competitors.

WorkForce Motivation: The employees at ICICI are a healthy combination of demographics. It majorly employs young population, offers good growth opportunities and regular salary hikes and promotions. The staff is taken care of by good HR policies that have been put in place by ICICI. HDFC and Kotak Mahindra lack in factors that take care of its employees and offers steady growth to their staff.

This competitive profile matrix reveals that ICICI's areas of improvements lie in its financials. Its services and employee motivation are its areas of strength.

ICICI HDFC Kotak Mahindra Critical Success Factors Weight Rate (out of 5) Score Rate (out of 5) Score Rate (out of 5) Score Financial Position 0.28 3 0.84 5 1.4 4 1.12 Service Quality 0.24 5 1.2 3 0.72 4 0.96 Online/ATM service 0.14 5 0.7 4 0.56 3 0.42 WorkForce Motivation 0.11 5 0.55 4 0.44 3 0.33 Customer Loyalty 0.15 4 0.6 5 0.75 3 0.45 Market Share 0.08 3 0.24 5 0.4 4 0.32 4.13 4.27 3.6

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