In the growth stage, the demand for the industry’s product begins to take off. It is quite evident that the demand for banking services in Bangladesh has increased gradually, throughout the years. The increasing number of banks and their differentiated offerings bolsters this fact. Rivalry among the competing banks is getting intense day by day. However, the rivalry among competitors in a typical growth industry is low. High rivalry begins at the shakeout stage. However, many authors do not distinguish between these two stages. The justification of low rivalry among companies is that all of them keep themselves indulged in market share building. As demand is ample and supply is comparatively low, anyone can enter the market and get their share of the profit. Banks in our country passed through that stage, and now the market is shrinking day by day. The growth rate has fallen, and slowly the demand is approaching the saturation point. Most banks have prepared themselves for the intense competition, which is the core characteristic of the shakeout stage. It is expected that interest rates and service charges for the different banking services will sharply decline in the coming years.
However, the Shakeout stage does not seem too far a reality and in order to maximize the profits and the turnover ration, ONE Bank Limited needs to further develop the strategies and innovate new product offerings for the clients. Creating loyal customer base should be the primary focus and the Marketing Mix identified should support the offerings well enough.
In the growth stage, the demand for the industry’s product begins to take off. It is quite evident that the demand for banking services in Bangladesh has increased gradually, throughout the years. The increasing number of banks and their differentiated offerings bolsters this fact. Rivalry among the competing banks is getting intense day by day. However, the rivalry among competitors in a typical growth industry is low. High rivalry begins at the shakeout stage. However, many authors do not distinguish between these two stages. The justification of low rivalry among companies is that all of them keep themselves indulged in market share building. As demand is ample and supply is comparatively low, anyone can enter the market and get their share of the profit. Banks in our country passed through that stage, and now the market is shrinking day by day. The growth rate has fallen, and slowly the demand is approaching the saturation point. Most banks have prepared themselves for the intense competition, which is the core characteristic of the shakeout stage. It is expected that interest rates and service charges for the different banking services will sharply decline in the coming years.
However, the Shakeout stage does not seem too far a reality and in order to maximize the profits and the turnover ration, ONE Bank Limited needs to further develop the strategies and innovate new product offerings for the clients. Creating loyal customer base should be the primary focus and the Marketing Mix identified should support the offerings well enough.
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