China Merchants Bank SWOT Analysis, Competitors & USP
Published by MBA Skool Team, Last Updated: April 26, 2020
SWOT analysis of China Merchants Bank analyses the brand by its strengths, weaknesses, opportunities & threats. In China Merchants Bank SWOT Analysis, the strengths and weaknesses are the internal factors whereas opportunities and threats are the external factors.
SWOT Analysis is a proven management framework which enables a brand like China Merchants Bank to benchmark its business & performance as compared to the competitors. China Merchants Bank is one of the leading brands in the banking & financial services sector.
The article below lists the China Merchants Bank SWOT, competitors and includes its target market, segmentation, positioning & USP. Let us start the China Merchants Bank SWOT Analysis:
For China Merchants Bank, SWOT analysis can help the brand focus on building upon its strengths and opportunities while addressing its weaknesses as well as threats to improve its market position.
China Merchants Bank Strengths
The strengths of China Merchants Bank looks at the key aspects of its business which gives it competitive advantage in the market. Some important factors in a brand's strengths include its financial position, experienced workforce, product uniqueness & intangible assets like brand value. Below are the Strengths in the SWOT Analysis of China Merchants Bank :
1. A bank pioneer in providing online banking services 2. Highly innovative in terms of new financial products, services and usage of information technology for banking 3. First Chinese bank to introduce a new financial product exclusively for high-end customers, which provided services to 750,000 high-end customers 4. Bank leads in asset custody, corporate annuity and offshore financial business
5.Dividend yield and Dividend 5 Year growth rate are greater than the industry and sector scores
China Merchants Bank Weaknesses
The weaknesses of a brand are certain aspects of its business which are it can improve to increase its position further. Certain weaknesses can be defined as attributes which the company is lacking or in which the competitors are better. Here are the weaknesses in the China Merchants Bank SWOT Analysis:
1. Increase in bad loans affecting the performance of the bank 2.Lags in terms of number of branches when compared to Big 4 Chinese banks (ICBC,CCB,ABC,BOC) 3.Not much dominance in agricultural and retail financing
China Merchants Bank Opportunities
The opportunities for any brand can include areas of improvement to increase its business. A brand's opportunities can lie in geographic expansion, product improvements, better communication etc. Following are the opportunities in China Merchants Bank SWOT Analysis:
1. High opportunity to expand in Mainland China and other Asian economies to compete with other Chinese banks 2.High opportunity to focus on agricultural, retail and personal banking to compete with other major Chinese banks 3.High opportunity to expand its presence in developing economies like India, Brazil etc to compete with major banks of the world through acquisitions
China Merchants Bank Threats
The threats for any business can be factors which can negatively impact its business. Some factors like increased competitor activity, changing government policies, alternate products or services etc. can be threats. The threats in the SWOT Analysis of China Merchants Bank are as mentioned:
1. Change in Chinese regulatory policies like reserve ratios affecting the bank 2.Decreasing investments in China affecting the bank 3.Slowing Chinese economy has a major impact on the bank
China Merchants Bank Competitors
There are several brands in the market which are competing for the same set of customers. Below are the top 3 competitors of China Merchants Bank:
1.ICBC 2.Bank of China (BOC) 3.Agricultural Bank of China (ABC) & CCB
Hence this concludes the China Merchants Bank SWOT analysis.
A Chinese commercial bank focusing on continuous financial innovation, quality customer service, prudent management and strong business performance
China Merchants Bank STP
Institutional and individual clients
Small, medium, large clients and individuals seeking varied financial services in the areas of wealth management,trade,international business, fund management and custodian banking
A Chinese bank with high emphasis on service, innovation and stability
This article has been researched & authored by the Content & Research Team. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.
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