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nt banks. There is a huge variety of public and private banks already exist in the market, offering products on competitive prices. If we look at banking products (loans, savings and current accounts) then Alfalah Bank, Meezan Bank, Habib Bank and many others are offering wide range of products in this sector. The tough competition between these banks increases the challenge which the MCB have to face. The competition among various banks increases the switching of the customers form one bank's product to the other bank.

Threat of new entrants

The banking sector of any country has always potential of growth and competition. Mostly foreign banks step in the developing countries for expanding their branches, not only this mergers between foreign and local banks take place at large scale but Pakistan's present economic condition and government instability has arose the feelings of awe and terror among most of the foreign banks to enter in the market. In future due to uncertainty and security problems in Pakistan investors will not be willing to invest here. Due to overall financial problems in the whole world new banks will not be entering in to the banking industry.

Power of buyer

Bargaining power of buyer is low where the products substitutes are not available and customers are large in number. In case of banks there are lots of other banks and banking intermediaries, having wide range of products, so power of buyer in banking sector is high. The bank cannot force any customer to buy the desired product because this directly affects its reputation. However, the bank can convince its customers by giving them special discount or rewards. If we look at MCB we will find that the competitors are also offering products due to which customer feel in power by saying that they can go to some other bank in case of dissatisfaction.

Bargaining power of suppliers

The lending power of bank is enhanced by its depositors as they are suppliers of the bank. It allows bank to involve in other business activities to invest such as personal and business loans. The suppliers then get interest on their amount as profit earned by the bank. Banks need to concentrate on their policies as bargaining power of suppliers is very high and they move towards highest interest rates.

Conclusion

According to Porters Five Forces analysis we can say that MCB has no fear of new entrants due to the poor economic position of Pakistan. However, it should keep its eyes open regarding mergers of various banks. There are two big threats; firstly from the buyers who can go to the other banks and secondly form the substitutes like investment in stock market, so MCB should carefully examine its task environment.

The Ecological Responsibilities of Muslim Commercial Bank (MCB)

3 different parts are mentioned in this section:

How ecological factors affecting decision making and policy at MCB

How effective the action taken towards ecological environment been so far (reducing waste, reducing carbon emission, reducing energy bills, reducing airtravel, investing in sustainable project) how these have gone up and have benefited the company.

What other areas of improvement that you think they should be doing to improve response of ecological factors...think about what other banks internationally have do