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Discuss about the POSB Bank. Describe very briefly explaining and point out the fact that.

The Demonstrate analytical and fact finding skills - To apply key theories to real world business examples. Explain Situation Analysis and SWOT. Critical theoretical evaluation of a contemporary case.

Pestle analysis

The major purpose of this study is to discuss about the business activities and operations of POSB bank which is one of the growing banks in Singapore. It provides innovative and attractive banking services to the key target audience across the globe. The bank further provides online banking and mobile banking services to the customers. Pestle analysis, TOWS matrix and marketing strategies have been drawn in the task to flourish and explore the banking operations internationally. The current objectives of POSB, resources and strategies of competitors like HSBC are explained in the task briefly. At the end, the paper discusses three strategies that are used by POSB to make a strong financial position and goodwill in the international market.

POSB bank is a Singaporean bank rendering consumer banking services to the customers across the globe. It is one of the oldest banks that continuously operating business activities and operations in Singapore. The bank was formed in 1st January 1877 as the post office savings bank. In today’s era, the bank operates and manages as part of DBS, which obtained the institution and its subsidiaries on 16 November 1998 (Deposits, 2018). POSB is one of the biggest local banks in Singapore as it has approx 53 branches in the country. POSB is a part of the DBS bank and it works together with DBS banks to attain competitive benefits in the international market. The bank has more than 1,100 ATMs around Singapore. It is stated that the bank offers traditional banking products that include current account products, Singaporean dollar denominated savings bank account, and foreign currency fixed deposit accounts. The bank provides personal banking and individual investments services to the customers across the globe (Deposits, 2018).

Pestle analysis is a framework used by investors and marketers to evaluate and identify the external environment factors influencing the business activities and operations. Pestle stands for political, economic, social, technological, environmental and legal factors. The main motive of the Pestle analysis is to have a foresight of the macro environment that can impact the internal business environment and initiate essential measures. The pestle analysis for POSB has been drawn below.

Political factors: It has been found that various political factors such as economy tariffs, labor laws, trade restrictions, tax policy and environment law affect the growth and success of POSB bank. All these political factors initiated by the government influence the banking industry directly and indirectly and POSB has to adhere to the legislations, standards and rules set by the government whether if it is for bad or good consequences. Singapore follows a territorial basis of taxation. POSB bank enjoys a headline corporate tax rate of 17% on their chargeable income (Gudiemesingapore, 2018


  • The political stability has created an atmosphere in Singapore of a quite low political risk.
  • Maximize in business operations and activities are promoting the development and expansion of POSB bank.
  • POSB is a major leader in the banking industry enjoys the growth, expansion and development of the bank.
  • It is noted that political risk is low in Singapore as compared to other countries.


  • The tax rates is high in the market this it can affect the success of POSB bank.
  • Globalization further impacts on the progress and targets of the firm.
  • Limited dissemination of content is a significant and largest threat for the company.

Economic factors: An overwhelming study shows that Singapore is experiencing maximizing worker cost. This may influence the firm by gaining the cost benefit. Singapore dollar is strengthening in the currency market. The economic factors include government policy, taxes, exchange rate, interest rate, labor costs, and management. The GDP per capital (USD) was 57,495(2017) and inflation rate was 0.4% in the country that can affect the profitability of POSB bank (Focuseconomics, 2018).

Competitor analysis


  • There is an open economy in the country thus, POSB can flourish the business globally.


  • There is a labor shortage in Singapore market.
  • Along with this, labor cost is high in the Singaporean market.
  • Singaporean’s economy is weak and slower than US and China economy.
  • Decline in productivity.

Social factors: It is portrayed that various socio-cultural factors may put direct impact on the efficiency and effectiveness of POSB bank in the country. The socio-cultural factors include culture, values, norms, aspects, attitudes, behaviors and nature of customers. The sale and revenue of the bank is dependent on behavior and attributes of people in the marketplace (Studymore, 2018).


  • Maximizing living standards and norms in the country can promote the business activities and operations of POSB bank in Singapore.
  • High level of education in the country is likely to generate a pull of skilled and talented workforce for the business companies like POSB bank.


  • Constant changing in trends is major threat for POSB bank that can affect the products and services in the marketplace.

Technological factors: One of the significant factors that can affect the outcomes and returns of POSB bank is technology factor. POSB is a leading and growing business organization to effectively and efficiently initiate use of information technology that has maximized ATM network effectiveness and customer satisfaction in general (Studymore, 2018).


  • Open and strong communication system.
  • The country has strong and widespread IT infrastructure which help in growing and expanding the business internationally.
  • With strong and advanced technology, the company can attain ample of benefits both externally and internally as well.
  • Both external and internal advantages enjoyed by POSB bank derived from advanced and innovative technological infrastructure rendered in Singapore (Koh &Tan, 2014).


  • Advanced technology becomes a major threat for the employees and company in the country because it needs huge investment and resources.

Legal factors: POSB bank is in a highly and effectively regulated and governed sector. There are various rules, standards and legislations that need to be followed by the company while performing and functioning in the country. It is elucidated that Singaporean government has various business regulations and laws which aim to protecting and saving the rights and interests of the leaders in the banking sector (Studytigger, 2018).


  • Rapid and constant growth in the economy helps in gaining various competitive advantages in the international market.
  • In today’s era, the Singaporean government is likely to maximize the level if litigation and regulations to both the financial and public sectors.
  • By planning and organizing the field of operation beyond the boundaries of the nations, POSB bank wants to explore business internationally.
  • POSB bank has to adhere to standards, rules and legislations set by the MAS(Monetary authority of Singapore) and they do not have the free would to act on their own harmony. That means the bank cannot work on specific criteria which can influence the economy in a bad way, this is significant way to protect the interest of the economy.


  • Sometimes, the company is unable to follow and understand the rules, legislations and norms which are made by the Singaporean government.
  • Constantly changing rules and regulations are another threat for the firm.

Environmental factors: It has been found from the various studies that the activities and operations in the banking industry have relatively the lowest adverse impact on the natural environment and culture (Kauškale and Geipele, 2017). However, as a big institution that is ethically needed to promote and improve environmental responsibility within the society where it is functioning and operating. POSB bank conducts green initiatives or steps in their offices to promote its workers to save energy and recycle used materials. Various programs and sessions are being held by the company to reduce and prevent the environment related issues and challenges (Studytigger, 2018).


  • POSB bank with proper and adequate corporate responsibility and ethics will care about their environment. It further helps in making a dynamic and strong brand image in the minds of the customers.


  • Recently, Singapore is under a serious and bad issue of environmental pollution due to industrialization which is undergoing. The country mangrove forest is under a wide threat as 30% of it has been depleted.
  • Weather, climate change and pollution are another biggest threat for POSB bank in the Singapore.
  • There is a lack of water resources; the country is dependent on Malaysian supplied water which is a major issue in the country.

It can be stated that pestle analysis is one of the biggest tools that is used by POSB bank to analyze and identify the risks, challenges and threats of the market in the Singapore. It is further analyzed that the bank needs to focus on these issues and threats to overcome the competitors globally (Studytigger, 2018).

It is stated that competitors may affect the growth and targets of POSB bank adversely. The competitors of the firm include HSBC, standard charted bank, and Chinese banking corporation limited.

One of the major and biggest competitors for POSB is HSBC. It is noted that HSBC holding plc is a British multinational financial and banking services holding company that may affect the sustainability and growth of POSB internationally. If POSB wants to grow and survive business globally then it needs to focus on the strengths, policies, approaches and strategies of the competitors. POSB further needs to keep an eye on the products and services that are being rendered by the competitive company globally. They must differentiate the products and services from the rivals to beat the competitors. It is stated that POSB is a Singaporean whereas HSBC is situated in United Kingdom (Lovelock and Patterson, 2015). It has been portrayed that POSB bank can take ample of growth opportunities while expanding and exploring the business activities and actions in developing countries such as Indian as compared to HSBC. On the other hand, retail banking in HSBC bank is in the context of POSB bank. There is high and stiff competition in both the banks that could directly put various impact on the returns, profitability and efficiency of the workers (Belkhir, 2009).

Current and future objectives

The current and future objectives of POSB bank have been discussed below.

Current objectives

  • To provide innovative and excellent services to the customers and clients as well.
  • To maintain price stability
  • To reduce social gaps for maximizing profitability and returns

Future objectives

  • To help the stability of the strong and unique financial system
  • To be a leader in the banking industry
  • To fulfill the needs and expectations of the customers related to money

After the various studies, it is reveals that POSB bank uses tremendous strategies to explore the business activities globally (Singleton and Verhoef, 2010). Some of the strategies that are being used by the company have been detailed below.

Community marketing strategy: Bank ranges in capabilities and size. POSB bank may have thousands of branches across the globe. Regardless of the size and nature of the bank, POSB needs to tailor local or domestic marketing strategies to serve the society in the global market. The consumer bank is a place where they feel comfortable, secure and happy that means banking executives and managers who speak in English as well as any prominent language in the society to provide various services to the customers around the globe (Leonard, 2018).

Premium services strategy: It is stated that POSB bank uses currently premium services strategy. The premium services are created to attract high net worth in the competitive market. Service is better for this bank to understand and focus on the findings the best solutions to fit complete financial scenario (Leonard, 2018).

Social media strategy: It is stated that POSB bank uses social media strategy to promote and improve the services in the global market. The company uses this strategy to attract and retain majority of people in the market towards the services (Synthesion, 2017). The bank uses social media strategy to communicate with clients, launch new products and build credibility in the global market (Nayak, 2012).

It is observed that HSBC uses ample of resources including derivatives, human resources, financial resources, risk management, survey reports, economic resources, benchmarking programs, liquidity toolbox, ABA communication guide, data breach communication kit, insurance sales, wealth management, compliance.

The company will uses innovative strategies to gain competitive benefits and to serve effectively to the customers around the globe. The company will constantly use the digital strategy to protect the business in the international market (Thefinancialbrand, 2018). It is a mandatory strategy that would be initiated by the firm in near future. It is emphasizes that that digital strategy will not only be safer, but also better equipped to leverage innovative and unique technologies to accomplish the desired goals and objectives. Along with this, HSBC will use corporate level and business level strategies to stand over the rivals in the marketplace. It will further help in increasing and boosting revenue and returns in the competitive market (Thefinancialbrand, 2018).

After the various studies, it has been found that POSB bank identifies and analyzes its strengths and weaknesses to cope up with competitors globally (Brunnermeier, Crockett, Goodhart, Persaud and Shin, 2009). The strengths and weaknesses of POSB banks are drawn below.


  • Strong and unique position in Singapore market.
  • The bank offers diversify and unique products and services to the customers across the globe. It is one of the effective and unique strengths for POSB.
  • Close to 20,000 workers work for DBS bank.
  • Divided yield is remarkably high as compared to the other banks.


  • There is high and stiff competition in the market.
  • Major chunk of the revenue comes from consumer banking, asset management, treasury and less revenue may come from the other offerings.
  • Low penetration in the Americas and Europe.

There are several strategies used by the bank to identify and analyze the threats and challenges of the market. TOWS is one of the fundamental strategies that initiated by POSB that has been discussed below.


· Expansion and development.

· Positive outlook of the asset management industry.

· Growth and development of retail savings.

· High opportunities to expand and explore the business internationally.


· Liquidation regulations and norms can affect the bank.

· High and immense competition further affects the business.


· POSB is one of the biggest oldest banks.

· Sources of GDP growth and employment

· Diversified services

· Awarded the best bank in Singapore.

SO (Strategies)

POSB bank uses its strengths to take benefits of opportunities in the competitive market. It is uses diversified strategies to provide innovative services to the customers in the market. It will further help to take benefit of it’s create consumer awareness and explore their services to a higher level.

ST (Strategies)

POSB is one of the leading and oldest banks thus it uses strengths to avoid threats. Diversification strategy helps the company to compete with rivals globally.


· Lack of coordination and cooperation.

· Competitors may affect the business of the bank.

· Vulnerable to risks and structural weaknesses.

WO (Strategies)

The bank wants to overcome the weaknesses such as risks and lack of coordination by taking innovative opportunities in the global market.

WT (Strategies)

It is trying to minimize weaknesses and avoid threats in the competitive market by providing innovative services and using dynamic strategies internationally.

The company cannot grow and survive business globally without using innovative strategies. To implement a new marketing plan, various strategies are implemented by POSB bank (Akturan & Tezcan, 2012). These strategies also help to strive and cope up competitors internationally.

The three strategies that are being used by the company have been elucidated below.

Marketing mix strategy

 It has been investigated from the various studies that marketing mix is significant strategy that helps to maximize profitability with reducing the prices of the products. This strategy is essential to stand out against the competitors internationally (Shopsinsg, 2018). The marketing mix for POSB bank has been drawn below.

Product: POSB is one of the biggest banks having commercial and retail banking services. It further provides online and offline services to the customers around the globe. Bank provides variety of products and services after taking consideration of regional requirements. The products of POSB bank include wealth management product, business banking products and personal banking products. The digital platform is a unique strength of POSB bank. The product strategy is significant for the company to differentiate its products from the rivals (Kotler, 2011).

Price: Competitive pricing strategy is being used by the company to stay in the competitive market. POSB bank offers loan facility which is among main earning source of bank. Effective and efficiently managing and handling cash flow are main financial services and revenue making business models (Evrard, Pras, Roux, Desmet, Dussaix and Lilien, 2009).

Place: POSB bank has approx 52 branches in Singapore. With more than 3.5 million total customers, the domestic approach is a part of the bank’s core values and philosophy which defines that they are “neighbors first, bankers second”. The bank is trying to expand and explore its business in the international market. This is strategy is essential because POSB bank can attract maximize customers internationally by implementing this strategy. Therefore, this strategy has been chosen by the firm (Luo and Bhattacharya, 2009).

Promotion: POSB bank uses various promotional channels such as print media and social media to promote innovative services in the global market. The creative advertising campaign and programs are held by the firm to showcase the reliability and fast of the customers for use. It is fundamental strategy to increase and enhance the sale of services and banking products in the global market (Keller, Parameswaran and Jacob, 2011).

People: This is biggest and leading strategy that being used by POSB bank to run the business activities and banking functions smoothly. The strong and innovative team further helps in making favorable culture in the organization (Schnabl, 2012).

Physical evidence: The bank provides physical evidence while selling the products and services to the customers around the globe (Kotler, 2011).

Process: Being service industry part, POSB bank gas good services for their customers. Effective and unique communication channels are used by the company to struggle with rivals globally (Kim and Finkelstein, 2009).

Diversification strategy 

Diversification is a growth strategy which helps to attain ample of competitive advantages globally. Diversification also seeks to maximize profitability of a company through greater sales volume as a result of product introduced and new markets (Demirgüç-Kunt and Huizinga, 2010). Diversification strategy helps POSB bank to differentiate its services and products from the competitors aiming to be a leader in the banking industry. This strategy is implemented by the bank because it minimizes the risks of loss and increase revenue and market share (Elsas, Hackethal and Holzhäuser, 2010).

By using this strategy, POSB bank can enter new market segments or new geographic that will be prohibitively expensive targets initiating traditional approaches (Setia, Venkatesh and Joglekar, 2013). By implementing this strategy, the bank defines and set the goals and channels to grow the business internationally. Along with this, digital strategy helps POSB to monitor and measures future risks, threats and challenges (Khanna & Martins, 2018).


It is concluded from the above limelight event that POSB is one of the biggest and oldest people’s banks, is making a major content push with the introduce or launch of a new content platform called neighbors It is providing investment, borrowing, savings and insurance services to the customers. It is evaluated from the above discussion that pestle analysis and SWOT analysis play a major role in identifying and measuring the threats and challenges of the market. POSB uses innovative strategies such as marketing mix, TOWS matrix, diversification strategy and digital strategy. By setting innovative objectives for future, POSB further wants to achieve long term mission and vision. 


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