Phân tích Các mô hình chiến lược mang lại lợi ích cho SeABank
Strategic management is the process of researching the current and future
environment, planning goals of the organization, implementing and testing to achieve
these objectives in the current and future environment.
Today, as a result of the globalization, rapid technological development, most
businesses have to pay attention to set strategies. The strategic management is
- it helps managers to forecast, access and make decisions on how and when to
achieve future targets.
- it helps administrators to recognize opportunities and risks in business as well
as to analyze and forecast the environmental conditions in the future in order to take
advantage of opportunities, reduce risks and overcome competition.
Any banks need a specific business strategy. Hence, effective mechanisms,
policies and clear strategies are required for the survival and sustainable development
of a bank.
Southeast Asia Bank (SeABank) is one of the earliest and among the top 10
largest joint-stock commercial banks in Vietnam, with total assets of 30,000 billion
Following are three benefits that strategy management brings to SeABank.
I. Strategic model:
1/ Low-cost strategy: implementing activities with high-performance and lowcost value chain, or edit the value chain to reduce costs and add value to the customers.
- Diversifying products and services; using efficiently current networks, technology
to supply, cross-sell products and services; improving the quality of traditional
products and services and developing innovative services to meet the demands of the
- Developing modern, efficient and qualified supporting systems as a basis for
business development; supporting the branches and transaction offices; completing a
restructuring step; renewing branches and offices according to the strategy.
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- The cost of products and services is a key part of the manufacturing process or
has a great impact on the quality of the products and services.
2/ Product differentiation strategy: Combining different features that make the
products or services of a firm more favorable than those of its rival brands; product
differentiation creates value for buyers without being copied easily and expensive.
a/ Leading products: developing ever-known products that have not been tried
and are always welcome. This strategy requires pioneering methods to help new
products be known the fastest on the market. Sony and Inter Corporation are two
examples of this strategy.
b/ The friendliness: establishing rapport with its customers to address its
customers and their needs. This strategy requires the optimization of customer
networks. The motivation of this method is geared toward the needs of targeted
customers, focusing on developing new products and services. For example, the
cabotage company The Home has successfully applied this strategy.
c/ The optimal operation: providing optimal products and services with high
quality, good price and convenience that dominate other companies. This strategy
emphasizes on the cost, quality, good relationships with suppliers, efficient
distribution. For example, McDonald's Corporation, Southwest Airlines, Dell
In recent years, many banks in Vietnam has actively divert their business to
attracting individual customers. Accordingly, a successful retail banks need to
understand an intimate relationship between brand and differentiation. It is not only
the difference in quality of products and services, but also creativity to put their names
on the map.
Thanks to the efforts and breakthroughs in retail banking strategy in 2013,
SeABank has been rated as one of the successful joint-stock commercial banks in this
field. In early 2013, SeABank invested millions of dollars in a new brand identifier. At
the same time, the retail strategy has been pushing from late 2012.
"SeABank believes the best retail products and services are the simplest ones
that are easy to use with low cost and high efficiency. We want SeABank is known
with simplicity beyond expectations and the 4P changes aim to this goal". In detailed,
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SeABank conducts comprehensive renovation according to 4P standards on the whole
system: Product (product superiority), Place (wide and fast distribution channels);
Process (a simple process) and People (professional, friendly, conscientious staff).
First, SeABank has successfully developed many unique products like Savings
love for your children, Home purchase savings, Officers loan, free billionaire ATM
cards for 10 years, Personal-preference account, etc.
The customer support program in 2013 of SeABank also resonated in the
market. In September 2013, SeABank launched interest rate at only 5.91%/year. The
package "Trust" supporting house purchases and management of cash flow for
homebuyers are also warmly welcome by both buyers and sellers.
Most of the programs of SeABank have received positive feedback from the
customers. After one year implementing the new retail strategy, SeABank, almost
entirely new band in the retail segment, has attracted 500,000 customers and become
an innovative and dynamic retail brand with many awards including "Best Retail Bank
in Vietnam 2013" awarded by Global Banking & Finance Review, "Innovative
products and services Bank in Vietnam 2013 " by ASEAN Banker Forum.
The difference of SeABank is built on the whole system to bring convenience
to customers. "Customer always want simple banking services that are quick register
and easy to use. This goal requires a uniform process, but so far not many banks have
In April 2013, SeABank released the first "online retail banking supermarket"
in Vietnam so that their customers can proactively register online services anytime and
anywhere. According to a representative of SeABank, provoding "better, simpler and
cheaper products and services" will continue to be a target of SeaBank in the future.
3/ Customer strategy: provide pilot products with superior design to collect
customers’ response to revise the products or find solutions to meet customers’
Depending on different products, they can be divided into several groups by
targeted customers or the capability of the firms. The solutions to this are to develop
the joint venture or employ outsources to meet customers’ needs.
- building regular relations with customers
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- maintaining customers’ loyalty
- supplying products and services according to customers’ needs
- Customer is the fundamental factor that determines the potential profitability of
the sector and SeABank. They require different level of services, quality and
characteristics of products and distribution channels.
- To survive and thrive in the competitive environment today, the banks are
concerned to develop the scale of their systems, to innovate of their products and
services, to create credibility and attract customers. The expansion of scale which
requires more technology are risk also. On the other hand, the open integration and
strong development of the banking and financial services, especially electronic
services, has increased high-tech crime which are barriers to banking applications.
II. Benefit analysis:
1/ The external factors:
In this economic integration era, companies and people all have new awareness
toward banking and finance. The companies can gradually approach the capital
(deposits, loans, payments, export-import payments via banks. Individuals have used
many banking services such as ATM cards, credit cards, etc. Cash payment is less
popular due to high risk when transporting. In addition, the use of ATM, MasterCard,
Visa in the baking system in general, SeABank in particular, is proved to be effective
- bringing great opportunities for the development banking services in order to
meet more and more professional demands of the businesses in the economy.
- With the capital contribution of foreign strategic partners, SeABank can not
only increase its equity but also access to modern managerial skills, innovative
technology and development new services that the partners have experience.
- creating opportunities and pressures to promote creativity, enhance labor
productivity and train SeABank human resources to meet new requirements.
- creating opportunities for SeABank to develop nation-wide network with
modern technology, innovative services.
2/ The internal factors:
In 2013, SeABank was one of the 5 commercial banks with the most charter
capital (5465.8 billion VND), its total assets were more than 100,000 billion VND
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with 155 outlets nationwide. This is thanks to the proper strategy and the consensus of
the Board of Shareholders.
In recent years, the growth of the charter capital of SeABank is better than its
competitors. Meanwhile, as compared to the state-owned banks and foreign banks, its
charter capital is much lower. This is a weakness that SeABank needs to consider by
adjusting the strategy to suit the trend of integration of Vietnam.
- SeABank uses the latest version (R08) of the Temenos T24 bank management
software. All transaction stations of SeABank are connected directly to the Head of the
transaction and other offices all over the country, which ensures quick and absolutely
safe transactions. SeABank has successfully integrated Temenos T24 and Way4 (a card
switching software) to supply safe, multi- functional and multi- utilities cards. In
addition, SeABank also owns Data Center system, IBM Servers systems and optimal
- SeABank applies the Core Switch Nesus 7000 switching solutions of Cisco.
Oracle Corporation (USA) awarded SeaBank a membership certificate of application
the most modern grid technology of Oracle. SeABank is a member of SWIFT (Society
of World Interbank Financial Telecommunication 24h per day)
- Security should be identified as an indispensable factor in quality of banking
services. Banks need to implement the best solution to protect consumers and raise
awareness of each employee: from marketing staff to customer care staff, supportreceiving staff. But those efforts haven’t been enough. It was revealed in a study by
MIT and Harvard a few years ago that when the yellow lock icon (the connection
encrypted by HTTPS) are removed from the login page, 96 % of participants still enter
the password. Even when there are warnings about suspicious sites, 57 % of
participants still enter the password. The random code generation equipment for once
use can be disabled if the internet banking customers are not concerned about
protecting their computers so that malicious hackers to hijack their machines.
Therefore, the banks should actively propagate to the clients to understand the security
risk and the way the banks are adopting to protect them. With each incident, the
benefits of security measures should be emphasized, which can avoid losses. When the
customers are aware of the problem, they will be happy to share the cost of security for
banks and more active in the information security. These mandatory provisions should
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be included in service agreements to help customers understand the risks that may
occur and allow them to choose of preventive measures. Moreover, in order to share
costs for customers, banks can provide free advanced security utility for their patrons,
and ensure a minimum level of security required for all customers.
In recent years, SeABank has made great effort to provide the highest level of
security possible for the customers. The first achievement of SeABank is due to the
harmonious combination of technology, people and processes. Though many mistakes
need overcoming, SeABank staff still give confident commitment to bring their
customers more secure and reliable service. The security are considered a competitive
advantage on the market.
III. Enhancing the strategies to achieve the goals by 2015:
When Vietnam implements fully the commitments to open in the field of
finance and banking, SeABank should develop more strategies to achieve the
- Chartered capital increases on average 20% to maintain the top ranks and
reaches over 14,000 billion VND (approximately $800 million) in 2015.
- Growth deposits in average of 20-50%.
- Outstanding loans will increase by 50-51% on average. Moreover, SeABank
will reduce the annual rate of loans in total capital by 5-7% to reduce the proportion of
loans accounted for 60% of total deposits and strive to increase the proportion of
services revenue (non-credit) in total revenue by over 55% in 2015.
- Sales of international payments to grow on average 30% -34% per year,
reaching $7,500 million in 2015.
- In terms of credit risk management, loan classification to implement and plan
debt according to international standards. Non-performing loans over total loan to
be under 2%, the proportion of medium and long-term credit over total credit to
- Expanding branch network annually, reaching 120 in 2014.
- The growth in pretax profit from 35% -40% annually.
- In terms of personnel and training, organizing training programs and fostering
in-depth knowledge and updating advanced banking knowledge, launching new
products, services and business operations.
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