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Investigating Competitive Advantage in Banking Industry Based on Porter's Generic Strategies: IRANs Newly-Established Private Banks

Author

Listed:
  • Mohammad Abdolshah

    (Department of Engineering, Semnan Branch, Islamic Azad University, Semnan, Iran)

  • Mostafa Moghimi

    (Industrial Engineering Department, Semnan University, Semnan, Iran)

  • Seyed Amirmohammad Khatibi

    (Faculty of Administrative Sciences and Economics, Isfahan University, Isfahan, Iran)

Abstract

Main objective of this article is investigating the role of Porter's competitive strategies (differentiation, cost reduction and focus) to increase the competitiveness and eventually gain competitive advantage. This study is a cross-sectional survey that is conducted in 2017. The study population is 221 CEOs (senior managers) in 99 Branches of 4 private banks in IRANs provinces Tehran (Capital of Iran), Qazvin and Isfahan as 3 of the most monetary turnovers. The research tools are a questionnaire containing demographic and specific information. To analyze the data, an SPSS statistical software is used and several statistical tests are used in the testing of the hypothesis and research goals. Finally, the impact of each dimension of the strategy to increase competitiveness is assessed. Also, each dimension is ranked according to influence; respectively differentiation strategy, focus strategy and cost reduction strategies. Considering banks multiplicity and results, special invest on differentiation strategy reaching competitiveness advantages to escape Red-Ocean in this industry is necessary. JEL Classification Codes: M13, G24, G21, F14.

Suggested Citation

  • Mohammad Abdolshah & Mostafa Moghimi & Seyed Amirmohammad Khatibi, 2018. "Investigating Competitive Advantage in Banking Industry Based on Porter's Generic Strategies: IRANs Newly-Established Private Banks," International Journal of Applied Management Sciences and Engineering (IJAMSE), IGI Global, vol. 5(1), pages 52-62, January.
    • Handle: RePEc:igg:jamse0:v:5:y:2018:i:1:p:52-62
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    More about this item

    JEL classification:

    • M13 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - New Firms; Startups
    • G24 - Financial Economics - - Financial Institutions and Services - - - Investment Banking; Venture Capital; Brokerage
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade

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