Porters Diamond model: Porter's diamond model suggests that there are inherent reasons why some industries

are more competitive than others on a global scale. The argument is that the national home base of an organization provides organizations with specific factors, which will potentially create competitive advantages on a global scale. The approach looks at clustersa number of small industries, where the competitiveness of one company is related to the performance of other companies and other factors tied together in the value-added chain, in customer-client relation, or in local or regional contexts

Porter's model includes 4 determinants Factor Conditions

Factor conditions include those factors that can be exploited by companies in a given nation. Factor conditions can be seen as advantageous factors that are subsequently build upon by companies to more advanced factors of competition. Factor conditions are human resources, physical resources, knowledge resources, capital resources and infrastructure

Yes bank has a few advantages over the competitors which helped it grow from a start up firm in 2003 to the sixth largest private sector bank with a balance sheet of $ 8.1 billion.

Yes bank entered the scenario when the banking sector was over branched but the consumers were under served. Bank is growing at a blistering pace when other banks are meagrely progressing The focus on the four pillars of product capital Financial Markets, Investment Banking, Transaction Banking and Corporate Finance The Knowledge Banking approach The Agribusiness ,Rural and Social Banking practice gave the bank an edge over its competitors Consistently exceeding the RBIs PSL requirements YES MMS , Rural banking through business correspondent

Demand conditions

After the fourth major reform in 1991 , in the wake of balance of payment crisis , the financial sector was deregulated and private domestic players as well as foreign players were allowed . Interest rates were also deregulated. The banking sector was characterised by a combination of socialist and capitalist features, with a strong policy emphasis towards the equitable distribution of wealth. During the bank inception, as Mr. Rana Kapoor states, over branched sector but the consumer was under served. There was a clear cut demand for better services to the customers. Though there were other bigger players in the market but there was still a scope of improvement, which was attempted to achieve using a meagre $ 45 m investment. Though overall the banking sector was fairly sophisticated in terms of competitive landscape, product range and supply, this was concentrated in the urban areas and successful banking in the rural India remained a serious challenge for the sector. To give the rural areas a priority RBI came up with PSL requirements mandatory for the banks. Despite aggressive PSL requirements, only 16% of the adult population had credit accounts and just 63% had savings accounts. The scarcity of institutional lenders drove the rural population towards the local money lenders. In 2006 RBI came up with Financial inclusion policies requiring banks to offer financial products to low income groups at affordable rates. All these current demanding conditions made YES bank to adopt the its strategy as Responsible banking developing synergies and business solutions for sustainable growth. The banks focus on the long term institutional investors was also demand driven. The RBI guidelines were one of the major factor behind the inclusion of

Agribusiness, Rural and social Banking (ARSB), sustainable investment banking (SIB). The technological changes with around 500 million mobile connections in India , the YES-MMS was formed to cater to the tech savvy generation, while adding a differentiator in the banks portfolio.

Related and Supporting Industries When local supporting industries and suppliers are competitive, home country companies will potentially get more cost efficient and receive more innovative parts and products. This will potentially lead to greater competitiveness for national firms. For instance, the Italian shoe industry benefits from a highly competent pool of related businesses and industries, which has strengthened the competitiveness of the Italian shoe industry world-wide. Related and supporting industries can produce inputs which are important for innovation and internationalization.[2] These industries provide cost-effective inputs, but they also participate in the upgrading process, thus stimulating other companies in the chain to innovate Post independence Indian economy was a system of complex licenses, regulations and government red tape, covering virtually all significant business decisions . During the early nineties after the banking reforms, many new players entered the banking sector including some foreign players . India saw FDI inflows grow from $252 m to $34.6 billion. Banking sector was one of the major recipient of the FDI equity. In a decade the banking sector grew rapidly with 76 commercial banks of which 27 public sector 22 were private and 27 foreign banks. The number of branches of all the banks grew substantially with SBI at 9034 branches. All this ultimately helped the end consumer with a deep penetration of banking sector throughout all parts of India. Firm Strategy, Structure, and Rivalry Strategy, structure and rivalry constitute the fourth determinant of competitiveness.[2] The way in which companies are created, set goals and are managed is important for success.[2]But the presence of intense rivalry in the home base is also important; it creates pressure to innovate in order to upgrade competitiveness. Likewise, if rivalry in the domestic market is very fierce, companies may build up capabilities that can act as competitive advantages on a global scale. Home markets with less rivalry may therefore be counterproductive, and act as a barrier in the generating of global competitive advantages such as innovation and development.

From the beginning RBI prioritised the equitable distribution of wealth, balanced regional economic growth and the removal of private sector monopolies in trade and in industries . The overall Indian Baking sector was characterised by a combination of socialist and capitalist features . In consensus with the basic strategy RBI came up with new reforms of Priority sector lending ensuring the growth of rural sector and SMEs through microfinance institutions and SHGs . YES bank made its vision in line with the RBIs as Responsible banking focussing on the development of synergies and business solutions for sustainable growth. The birth of development banking, ARSB , YES SAMPANN , SIB were all done according to the prevalent requirements and maintenance of the competitive edge for the bank. To develop and incubate products and services that could be business solutions to social problems, a Responsible Banking in thought was implemented. With the new edge innovative technology keeping pace with the changing times YES MMS was developed. New departments were added structural modifications were made by the bank for obtaining and sustaining the market share in the banking sector.