Operating environment of HSBC Essay Example

through leveraging their existing businesses and functions.Their existing scale, experience and developed value chain allows them to create value that their competitors find hard to match. • The growth rate in economies such as Asia and South America is extremely high leading to intense competition and rivalry in these areas. The customer base is heavily price focussed and HSBC are able to react to this through passing the savings they make through their efficiencies and economies of scale directly to the customer.

• The major of players in the industry are attempting to outperform their competitors through the development of sustainable competitive advantages that are often formed through the unique structure and consolidated value chain of their organisations. HSBC has a truly unique organisation and have leveraged this to offer value add services. • The companies who are the most successful in attaining a global presence are doing so through mergers, takeovers and acquisitions; HSBC is no exception to this.• Putting the customer at the heart of the strategy requires a deep understanding of what drives and motivates them.

Companies such as HSBC have invested heavily in Customer Relationship Management software and systems that are capable of measuring customer spending patterns, preferences and development. However, many of the banks are continuing to experience difficulties in utilising these complex sets of data to generate real differentiated customer propositions (Mckinsey Quarterly, March 2008).