To analysis the bank’s competitive strategy; they can follow four types of competitive strategy which are –
Defensive competitive strategy:
BASIC Bank Limited has a strong defensive competitive strategy in the market. Thus, they create their best position in the market. They invest heavily in their fixed assets to improve their production as well as technology to lower their production cost.
Offensive competitive strategy:
BASIC Bank Limited uses its opportunity and strengths to affect the competitive forces in its industry such as- rivals, preempting etc. the products of this bank are dominating the market very attractively and thus, they are getting cost advantage to serve their products.
Low cost competitive strategy:
BASIC Bank Limited tries to exercise this strategy and thus, wants to become the best service provider in their area. The charge of its products is near to the industry average charges and by this way, it should differentiate itself from others.
Differentiation competitive strategy:
With this strategy, a firm seeks to identify itself unique in its industry in banking area. BASIC Bank Limited follows this strategy to make their position better in the market and this strategy also varies widely by industry. For this reason, they apply different distribution system such as- lowest charges, providing long term loan etc. But, their product promotion system such as- advertising is not well enough.