Maybank: Analyzing Internal and External Operations for Market Value Determination in Business Management

Maybank is a leading banking group in Malaysia operating in Indonesia, Singapore, and the Philippines. The research aims to analyze Maybank's internal and external operations, including history, market segmentation, positioning, and competition, to determine its market value. Maybank offers a wide range of banking services globally, focusing on personalized insurance services such as travel insurance. The company's value proposition lies in its differentiated insurance offerings, catering to customer needs and demands. Maybank targets customers who seek financial assistance and coverage for unforeseen accidents and mishaps during travel, aligning with their wants and needs.

Running Head: BUSINESS MANAGEMENT
BUSINESS MANAGEMENT
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1.0 Introduction
One of the leading banking groups in Malaysia, Maybank operates through the topmost
market sectors located in Indonesia, Singapore and Philippines. The aim of the paper is to
conduct a research analysis on the internal and external operations of Maybank for determining
the market value of the bank. The research focuses on some specific areas for precision and
clarity of presentation. Some of these areas include a brief outline of the company’s history and
background, market segmentation and customer demands, positioning strategy and value
proposition, company orientation and offered service ranges. Additionally, the paper aims at
identifying the factors that influence the level of competition and consumer behavior for arriving
at a holistic conclusion.
2.0 Company overview
Maybank is one of the largest banks in Southeast Asia through market capitalization and
excess total assets. The total assets of the organization exceeded US$165 billion and net profit of
US$2.93 billion computed in the year 2017. The organization holds international business with
2400 branches all around the globe, supported by 45000 employees. The different changes that
are undertaken by the bank in the financial and banking service offerings has helped the same in
maintaining the efficacy of the operations as per the needs of sustenance. The major aim of the
organization is to provide superior customer service as per the needs of the clients. Extensive
range of consumer services has helped the organization in maintaining the satisfaction level of
the clients.

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3.0 Market orientation and product ranges
The Maybank banking group specializes in offering a wide and comprehensive range of
services such as insurance trustee, offshore banking, internet banking, investment banking,
venture capital, stock broking, asset management and an array of insurance services. The traders
are entitled to flexible and exclusive settlement options while new customers are allowed to
enjoy interest free financing services for 10 days. Maybank’s travel insurance facilities is the
selected banking service chosen particularly for this assignment.
Maybank launched diverse range of services in order to maintain the efficiency of the operations
as per the needs of the customers. The organization designed the Takaful insurance products for
providing the customers with different packages relating to insurance. The Takaful arm of the
organization utilizes the brand name Etiqa, which aimed at providing the customers with
personalized categories of services to all family class. The organization utilized multi-channeled
networking in order to make the target customers aware of the services that are provided by the
bank. On the other hand, the organization also aimed at making the services accessible to the
customers through promotions relating to the benefits that are provided by the organization.
The customers are offered to avail insurance services for savings, home investments,
medical purposes, assets and legacy, travels and automobiles (ABC News, 2019). With the
intention of reaching new heights in the field of insurance facilities, Maybank has established an
exclusive insurance and takaful policy, created particularly to meet domestic demands of
customers. The Takaful branch goes by the brand name Etiqa in market, an insurance facility that
offers unique and personalized categories of services for all classes of family through a
distribution network that operates via multiple channels. The chosen service category selected

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for this paper is personal since it caters to the private needs of the customers. The facilitation of
the schemes and policies of the insurance, the company focuses on the improvement of customer
accessibility and feasibility (Highsnobiety, 2019).
3.1 Service analysis
Maybank offers personalized insurance services covering a wide variety of consumer
requirements such as critical illness, life protection, home insurance, endowment, travel
insurance, automobile purchase, and hospitalization. It is Maybank’s aim to continue working
with its established partners and the customers harmoniously is driven by the motivation to
humanize the existing insurance policies in the current market and aligning the policies with the
needs and convenience of consumers. Maybank successfully delivered on their promise of
providing superior insurance services by the end of 2013; especially in the contexts of retirement
savings, wealth protection and education planning. The company has innovated the kind of
services by introducing exclusive facilities in insurance in respective forms of elite investment
link, Marbur, Takaful ali plus and Ultra medic rider (Nike News, 2019).
3.2 Company orientation
From the service analysis and company overview of Maybank, it can be asserted that the
specialization of the company is product oriented. The policy makers and innovators of Maybank
inducted new facilities in the insurance services. To a large extent, these innovations are inspired
by the individualrequirementsof the customers (majority target segment) and they are further
aimed to develop the personalized services in a way that it meets the requirements of different
customer category. Insurance, moreover is a wholly personal service offered by banks to
customers on terms and conditions that are specifically confidential. The services must therefore

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be less market oriented and more product oriented since it is influenced more by the differing
needs of the customers and less on the changing scenarios of the market.
4.0 Company’s value proposition and differentiation
Currently, Maybank is Malaysia’s only banking company that the Insurer Financial
Strength , popularly known as IFS, has rated with an A to credit its diligent and unique services
with respect to insurance facilities. Etiqa Insurance Berhad or EIBce, is one among the most
popular organizations of insurance providers worldwide holding subordinated bonds that are
worth more than 500 million dollars (Extension 2019). The unit severely dominates the entire
banking industry in terms of insurance services commanding a market share of a total 47%.
Keeping the customer accessibility in mind, Etiqa features a strong agency force comprising of
19000 forces that are operated in more than 30 branches in different parts of Malaysia.
Consumers can avail the facilities online over the internet as the cooperatives and the brokers are
perpetually available to assist them. This helps the bank to increase its market reach and bring
the customers closer and in contact with the bank operators. Apart from this, the bank networks
enjoy a favorable reputation in the market as the Filch ratings has rated it with an A. which
added to the company’s value proposition. The sound liquidity and the extensive distribution
coverage affords the operating margins a favorable market value.
Travel insurance as a banking facility accounts for the product differentiation of
Maybank. A policy of travel insurance is not available as easily and as conveniently by the other
banking companies. Etiqa’s travel insurance policies have various benefits. They include
personal accidents relief and medical benefits for adults belonging to the age group of 70-80. The
administration has developed a comprehensive plan of travel insurance offering full protection to
the affected insurance holders. The overseas-incurred medical expenses are looked after by the

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policy that covers up to 20,000 dollars for basic facilities, 30,000 for economy and 400000 for
business in case of adults below the age of 70 years. The hospital income overseas are rated
higher than the other banks within the country. There are additional benefits of availing travel
insurance from Maynbank such as covering the expenses required for medical allowance and
hospital visitation, emergency telephonic charges and compassionate visits. Service
differentiation, however, goes way beyond that: Maybank even offers certain benefits for the
travel inconveniences of the customers. These benefits include covering up for the loss of
depositories, baggage delay, travel curtailing (hijacking, for instance) travel agency frauds,
personal problems such as computer and laptop damage while travelling, misplaced travel docs
(including money), flight diversion and overbooking, trip cancellation, travel postponement and
misconnection. About 1,00,000 dollars’ worth of personal assets and liabilities are covered by
the insurance policy. Apart from that, there are several other personal benefits, including the
cover up for misadventures and misfortunes such as hijacking and kidnapping, terrorism. These
additional benefits combine in the service differentiation of Maybank as compared to the other
companies in the banking industry. The discussion so far identifies the differentiation in value
proposition that aids the banking service of Manybank stand out of the crowd with regard to
insurance facilities available in the current market(Sponsorship, 2019).
5.0 The needs, wants and demands of the customers
Kotler and Armstrong (2012) in their discussion on the needs, wants and demands of the
customer, refer to the essentially physical, social and individual prerequisites of human beings.
The surrounding ambience of a given individual largely influences his/her consumer needs.
Other determiners of this consumer requirements are lifestyle preference and individual

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personalities. According to the authors, the fundamental difference between a want and a need is
that a need is an essential prerequisite that must be possessed by an individual in order to survive
while a want is a specific desire around in the individual on account of his/her personal
preferences (Sponsorship, 2019). To put it more technically, wants are more psychological and
needs are physical. Lastly, demand refers to the desire that comes after acquiring a sufficient
capital for making a purchase in order to fulfill that want. Meeting the demand for a particular
commodity or service requires purchase ability and sufficient resources. Demand arises only
after the essential needs have been sufficiently fulfilled. Maybank’s insurance services is largely
in sync with the wants, demands and needs of the consumers. Individuals might be deeply
affected by accidents and misfortunes that might befall them unprecedentedly, following which,
it becomes part of their fundamental want to look for financial aid and assistance either for
damage repair or in order to cover up for the loss. An insurance policy is highly valuable and
necessary in this context. Although travelling is a leisure activity, there is no way to either avoid
or anticipate the accidents that might occur in an unfamiliar land. These mishaps might impose
serious trouble on the travelling individuals. People might land themselves in severe legal
controversies as a consequences of these activities.
6.0 Segmentation and targeting
The segmemtation process requires s thorough look at the heterogeneous market as if they are
consisting of a various number of smaller homogenous units, referred to as segments. The
process of segmentation aims to serve each consumer in a different manner and the wide range of
services offered by the Manybank operators precisely aim to meet this purpose. Service

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segmentation is made on the basis of psychographic, demographic, consumer’s behavioral
aspects and geographical specifics.
When it comes to consumer banking, Maybank targets an affluent audience. In case of
the corporate segment, the company targets entrepreneurs within the age range of 25 to 40 years.
The young generation is made the target audience for the debit-card segment. This segment also
suitable for housewives and students.Maybank’s unit of business banking has medium-sized and
small firms as the target segment. Shariah-com,pliant services are offered by the Islamic branch
of the company, catering to the rapidly growing Muslim target base in parts of Malaysia.
The segmenting of the target with respect in terms of psychographic segmentation,
Maybank divides its customers based on their differing lifestyles, values and personalities.For
customers face difficulties in selecting a proper investment tool, a unit trust in wealth
management service is organized. The demographic approach to segmentation take into
consideration different aspect such as the occupation, age, gender, family size, education,
religion and race. For instance, the senior personal accident is exclusively designed for the
benefit of senior citizens to cover up the payments for nursing care, recovery expenses and
medical bills.
7.0 Positioning strategy
For handling the tremendous pressure on the banking industries, the organization had
designed its services to position itself uniquely in terms of the value propositions.
. The bank operativesaim to maintain anaffable and steady relationship with the
customers in Malaysia. The purpose and reason of providing travel insurance to the customers is
to guarantee them that their travel is protected and safe. The public could easily view the
positioning of the travel insurance plans and that is why Maybank has formed partnerships with

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several travelling mediums such as waterways, airlines and railways. The company has even
opened accounts with some of the most popular airlines on the world such as Qatar, British
Airways and Jet Airways.Maybank is positioned favorably in the market, offering high quality
services at low prices. The positioning map demonstrates the company’s market value: This
ensures that the customers who are availing the different kinds of transportation are aware of the
availability of travel insurance.
Aba bank
Maybank
Acleda
Bfc Group holdings
8.0 Factors influencing consumer behavior
The identification of consumer behavior helps an organization in developing the line of
products and services. The concerned organization aims at providing travel insurance to the
travelers, which is primarily dependent on the identification of the needs of the clients. The
High quality
Low quality
High price
Low price

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primary factor affecting the consumer behavior perspective of a tourist is dependent on the fear
of losing their belongings while making a tour. Maybank provides an assurance to the travelers
relating to the luggage with its primary clause of providing the same with money for the loses
claimed by the same. It has helped the organization in adhering to the needs of the consumers
while designing policies.
Moreover, the bank also provided the customers with the insurance relating to uncertainty
that might be faced by the same while traveling from one place to another. The travel insurance
will also ensure that the customers who are affected relating to delayed flight timings or injuries
while travelling will be compensated by the bank. It has helped the organization in diversifying
the insurance cover clause as per the circumstantial needs of the customers. On the other hand,
the diverse coverage that are provided by the bank has helped the same in attracting most of the
customers.
The term payments that are framed by the organization for the policies are lucrative in
nature, which attracts most of the consumers. The structure of term payments is made flexible as
per the family income of the clients, which has helped in enhancing and attracting more potential
consumers to the policies. The brand name of the organization works in achieving the confidence
and trust of the consumers to invest on the insurance policies framed by the same.

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Nature and level of competition
ACLEDA bank and Aba bank in Malaysia are the leading rival companies of Maybank.
As far as the international forefront is concerned, the competition is extremely high. On the
bright side, Malaysian natives are quite loyal customers that prefer Maybank to any other
substitutes. The brand value of Maybank is strong enough to acquire the goodwill of customers
stronger than any rival firms. Further, the competition is not so intense in the department of
travel insurance whereas other services such as loans and fixed deposits continue to struggle with
intense competition with rival banks in the industry.
Conclusion
The discussions in the separate sections of the paper make it evident that policies and
schemes formulated by the travel insurance unit is a profit-yielding business for Maybank in
Mlaysia. The bank is earning a considerable part of its revenues from the unit of travel insurance
As observed in the analysis, the firm still has to combat the rivals in the market to emerge as the
leading banking company in Malaysia as well as worldwide.

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