...The suppliers of capital might not pose a big threat, but the threat of suppliers luring away human capital does. If a talented individual is working in a smaller regional bank, there is the chance that person will be enticed away by bigger banks, investment firms, etc. 3. Power of Buyers. The individual doesn't pose much of a threat to the banking industry, but one major factor affecting the power of buyers is relatively high switching costs. If a person has a mortgage, car loan, credit card, checking account and mutual funds with one particular bank, it can be extremely tough for that person to switch to another bank. In an attempt to lure in customers, banks try to lower the price of switching, but many people would still rather stick with their current bank. On the other hand, large corporate clients have banks wrapped around their little fingers. Financial institutions - by offering better exchange rates, more services, and exposure to foreign capital markets - work extremely hard to get high-margin corporate clients. 4. Availability of Substitutes. As you can probably imagine, there are plenty of substitutes in the banking industry. Banks offer a suite of services over and above taking deposits and lending money, but whether it is...
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...PORTERS 5 FORCES ITS ANALYSIS OF BANKING INDUSTRY TAKING INTO PERSPECTIVE THE GROWTH OF THE INDIAN ECONOMY. THE REPORT ALSO CONTAINS AN ASSESSMENT BASED ON PORTERS ANALYSIS, PEST ANALYSIS, COVERING THE RELEVANT POLITICAL, ECONOMIC, SOCIAL AND TECHNOLOGICAL FACTORS THAT HAVE IMPLICATIONS FOR THE DEVELOPMENT OF THE BANK.IT EVALUATES THE INDUSTRY WITHIN THE MICHAEL PORTER FRAMEWORK.IT ALSO CAPTURES THE IMPORTANT TRENDS AND KEY ISSUES AND PROVIDES AN OUTLOOK ON THE BANK. SATURDAY, JULY 12, 2008 PORTERS 5 FORCE ANALYSIS BANKING INDUSTRY: An Analysis This report analyzes Banking industry taking into perspective the growth of the Indian economy and the sustainability of this industry in the present scenario. The report also contains an assessment based on Porters analysis, PEST analysis, covering the relevant political, economic, social and technological factors that have implications for the development of the bank. Additionally, it evaluates the industry within the Michael Porter framework. The report goes on to describe the competitive landscape and provides a comparative financial study of the major players in the industry. It also captures the important trends and key issues and provides an outlook on the bank. 1. PORTERS 5 FORCE ANALYSIS FOR BANKING INDUSTRY Porters model is, applied microeconomic principles to business strategy and analyzed the strategic requirements of industrial sectors, not just specific companies. The five forces are competitive factors which...
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...factors and how it affects the banking sector of the business. This will provide as a better understanding of the key factors and how this factors can create a competitive advantage with Westpac and Hsbc. Strategic choices were also provided for both banks and on how these choices can be an advantage and disadvantage with Westpac and Hsbc. A conclusion was also provided at the end of this report. Table of Contents Executive Summary: 4 Introduction: 6 Banking History 6 Content: 7 Macro environment Factors: 7 PEST Analysis 7 Political and Legal factors 8 Economic factor 8 Social Factors 9 Technology 9 Firm Level Analysis 10 Porter’s 5 Forces in Bank Industry 10 Firm Level Analysis 11 SWOT Analysis Model 11 Strategic Choice 12 Conclusion: 13 References 13 Introduction: Banking History Australia’s banking history can be described in four eras, the private banks, the commonwealth banks, the reserve bank and deregulation. Australian’s first bank was founded in 1817, the Bank of New of New South Wales. The main purpose of this bank is to take deposits and re-loaned the money by providing discounts of exchanged. Since there is no central bank, each private bank are taking their own risk and a lot of private banks stood and fall from its credit. As long as the bank’s assets were believed to be credible, its notes were freely accepted until the alarming incident happened. Two Thirds of the total banking Assets in Australia closed...
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...Industry Analysis on Axis Bank Michael Porter’s Five Forces Model Porter's five forces analysis is a framework for industry analysis and business strategy development formed by Michael E. Porter. It draws upon industrial organization (IO) economics to derive five forces that determine the competitive intensity and therefore attractiveness of a market. Attractiveness in this context refers to the overall industry profitability. An "unattractive" industry is one in which the combination of these five forces acts to drive down overall profitability. A very unattractive industry would be one approaching "pure competition", in which available profits for all firms are driven to normal profit. In case of Axis Bank, according to us, the Porter’s Five Forces Stands as shown below: | Weak | Neutral | Strong | Fierce | Industry Rivalry | | | | | Supplier Bargaining Power | | | | | Buyer Bargaining Power | | | | | Threat Of New Entrant | | | | | Threats of Substitute | | | | | Industry Rivalry Industry rivalry means the intensity of competition among the existing competitors in the market. Intensity of rivalry depends on the number of competitors and their capabilities. In case of Axis bank, we have found that this particular parameter is fierce. Since March 2002, Bankex (Index tracking the performance of leading banking sector stocks) has grown at a compounded annual rate of about 31% as shown below. After a very successful decade, a new era seems to have...
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...Five Force analysis of the Banking Industry in India The banking industry in India originated in the 18th century. It is an important sector as it focuses on the development of Indian Economy. The State Bank of India is the oldest bank which is still in existence. The major change in Indian banking industry happened post independence; with the nationalization of Reserve Bank of India (RBI) in 1949 and authority to RBI as a regulatory body for banks (Banking Regulation Act 1949). The major players in the Indian banking industry can be classified as: 1) Public sector banks like State Bank of India, Andhra Bank, Allahabad Bank, Punjab National Bank etc. 2) Private sector banks like HDFC bank, Axis bank, and ICICI bank etc. 3) Foreign banks like Citibank, HSBC bank, and Standard Chartered bank. This report consists of Micheal Porter’s Five Force analysis of five banks operating in the Indian Market wiz State Bank of India, Punjab National Bank, HDFC bank, ICICI Bank and Citibank. 1) Threat of new entrants: (high) Many multinational banks are attracted to enter the Indian banking sector to start their operations and provide services to Indian customers. Many, Non Banking Financial Companies (NBFC) are waiting to get their license from RBI. 2) Threat of Substitute products/services The threat of substitute products and services provided by the banking industry is very low. The substitutes to the banking services include local lender 3) Bargaining...
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...Michael Porter’s Five Forces Model Porter's five forces analysis is a framework for industry analysis and business strategy development formed by Michael E. Porter. It draws upon industrial organization (IO) economics to derive five forces that determine the competitive intensity and therefore attractiveness of a market. Attractiveness in this context refers to the overall industry profitability. An "unattractive" industry is one in which the combination of these five forces acts to drive down overall profitability. A very unattractive industry would be one approaching "pure competition", in which available profits for all firms are driven to normal profit. In case of Axis Bank, according to us, the Porter’s Five Forces Stands as shown below: | Weak | Neutral | Strong | Fierce | Industry Rivalry | | | | | Supplier Bargaining Power | | | | | Buyer Bargaining Power | | | | | Threat Of New Entrant | | | | | Threats of Substitute | | | | | Industry Rivalry Industry rivalry means the intensity of competition among the existing competitors in the market. Intensity of rivalry depends on the number of competitors and their capabilities. In case of Axis bank, we have found that this particular parameter is fierce. Since March 2002, Bankex (Index tracking the performance of leading banking sector stocks) has grown at a compounded annual rate of about 31% as shown below. After a very successful decade, a new era seems to have started...
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...Rising competitive pressures will force Banking industry to differentiate itself more aggressively, whether through its product mix, market focus, or branding proposition. Restructuring will focus on entrenching existing areas of strength, not developing entirely new ones. Cost-efficiency will remain key factor. Expect a further acceleration in the outsourcing of non-core functions and greater emphasis on performance improvement as the bank will seek to increase the efficiency of back-office processes. POSTED BY MYBLOG AT 12:02 AM NO COMMENTS: Post a Comment LINKS TO THIS POST Create a Link Newer Post Home Subscribe to: Post Comments (Atom) USEFUL INFORMATION ANALYSIS OF THE GLOBAL CAPITAL MARKET Learn Excel Quick & Easy MBA Quick Reference MY HEADLINES FUTURE OF OIL AND RISING OIL PRICES Blood and oil: How the West will profit from Iraq's most precious commodity 7/17/2008 The 'IoS' today reveals a draft for a new law that would give Western oil companies a massive share in… Oil for War 7/17/2008 After invading one of the most petroleum-rich countries on earth, the U.S. military is running on empty. Napoleon famously… Future of Iraq: The spoils of war 7/17/2008 How the West will make a killing on Iraqi oil riches Iraq's massive oil reserves, the third-largest in the world,… Headlines by FeedBurner FUTURE OF OIL AND RISING OIL PRICES ↑ Grab this Headline Animator SUBSCRIBE NOW: GOOGLE Add to Google Reader or Homepage ...
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...investments. High-net worth individuals and families are also able to access the Citi Private Bank for a complete range of wealth management services. Citibank is part of Citigroup Inc., with 200 million customer accounts, doing business in more than 160 countries and jurisdictions. Around the world, Citi provides consumers, corporations, governments and institutions with a broad range of financial products and services, including consumer banking and credit, corporate and investment banking, securities brokerage, transaction services and wealth management. B. Research Design and Methodology Chapter II : External Analysis A. Economic Forces The Economic measures affects the banking sector to boost the economy by giving certain concessions or facilities. If in the savings are encouraged, thenmore deposits will be attracted towards the banks and inturn they can lendmore money to the agricultural sector and industrialsector, therefore, booming the economy. B. Social Forces The primary social factor that have a huge impact in the analysis of the macro-environment of the business is the demography, in the demographics there are two areas in the demography in which most businesses are concerned, the working population on which it identifies the number of possible employees of the company and the population, the number of people residing in a community or a country which will...
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...Strategic Management Assignment – SWOT Analysis for Islamic International Arab Bank (IIAB) Marketing Strategic Management Assignment – SWOT Analysis for Islamic International Arab Bank (IIAB) Done by: * Dania Done by: * Dania Table of Contents Introduction 3 IIAB Strategic Statement: 3 Vision Statement: 4 Mission Statement: 4 Our Policy Statement: 4 Objective Statement: 5 Strategic Statement: 4 External Environmental Scanning: 5 Macro-Environment & PESTEL Analysis 5 Five forces framework: 7 Market segmentation & Competitor Grouping 9 External Factors Analysis Summary (EFAS) 10 Internal Factors Analysis Summary (IFAS) 11 Stratigic Factors Analysis Summary (SFAS) 13 Introduction The Jordanian banking sector go back to the year 1925, when the Ottoman Bank commenced its operations in the country as the first commercial bank, followed by Arab Bank in 1934 and the British Bank of the Middle East in 1949. The banking sector remained limited to these three banks until 1955, when three new commercial banks were incorporated during the period 1955 - 1960, namely, Jordan National Bank, Jordan Bank, Cairo - Amman Bank in addition to Rafidein Bank, which opened its first branch in Jordan in 1957. The banking sector did not experience any major developments during the period of the 1960s since no other banks, either local or foreign, emerged. However, with the beginning of 1970s, the banking sector in Jordan started to undergo a major...
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...MBA/EXE/MWZ/047/T.13 QUESTION 24 "Carry out the industry analysis in which your company operates" ............................... 1.0 INTRODUCTION The Tanzania banking sector embarked on a plan for financial liberalization in 1992 in order to sustain its economic growth. and the plan has been accomplished through the mobilization of financial resources as well as by increasing competition in the financial market and by enhancing the quality and efficiency of provision of banking services especially lending, since the liberalization, the banking sector in Tanzania has been booming, particularly over the past ten years thanks to the general economic growth and friendly financial investment environment for foreign and local banks With a total of 34 banks and a few non-banking financial institutions, which are not allowed to open current accounts, the market is characterized by a few big players and several small banks falling between local and foreign banks, local banks primarily service local customers while foreign banks tend to operate as subsidiaries of large groups, such as Citigroup and Barclays, using strategies oriented to the international market. Banks can be categorized according to orientation towards different markets and clientele operating in Tanzania: local private banks, regional banks, international banks and multinational banks, Overall, the outlook for the banking industry in Tanzania is very positive and there are appealing...
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...Conclusion The finance industry is in a considerable period of change at the minute with the credit crunch implications meaning “The public sector has provided massive liquidity support, injected capital and improved deposit insurance. Looking further ahead, wide-ranging reforms are under way aimed at increasing market and institutional resilience. It is an open question how wide the financial safety net will be cast. The future financial sector can be expected to be smaller and operate with higher capital and liquidity buffers than before the crisis.” This quote by M.Gudmundsson, basically says that that credit will not be as easy got by consumers from the pre 2007 levels, with the governance of banks meaning finance will be harder to get thereby meaning that people who are credit risks will struggle to get credit and so therefore economic growth will be slow for a few years until consumer confidence and bank capitol rises again with the economy. The introduction of payday lenders, easy to obtain credit cards with high interests and poor credit acceptance and the fact that online banks are now challenging banks on both finance and banking respectively mean that the finance industry is changing. In our research we looked at the PESTEL, Porters' 5 forces and blue and red ocean frameworks and applied them to the finance industry. We found some common trends and threats, with all models linking up to show common trends and interlinking the 3 frameworks, examples of this...
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...of Content 1. Introduction 3 1.1 Introduction of the company 3 2. Industry Analysis 5 2.1 Porter’s Five Force Analysis 6 2.1.1 Bargaining Power of customers 6 2.1.2 Bargaining Power of Supplier 7 2.1.3 Risk of Entry by Potential competitors 7 2.1.4 Threat of substitutes 7 2.2 Competitor Analysis 8 3. Comparison of Financial Performance 10 3.1 Competitor Introduction 10 3.2 Ratio analysis 10 3.2.1 Net Interest Margin 11 3.2.2 Operating profit margin 12 3.2.3 Return on Equity ratio 13 3.2.4 Return on Capital Employed 14 3.2.5 Asset Turnover 15 3.2.6 Gearing ratio 16 3.2.7 Interest Cover 17 3.2.8 Earnings per Share Ratio 17 4 Analysis of the financing sources 18 4.1 Purchase of Ordinary share 19 4.2 Purchase of Debentures 20 5 Recommendation 21 6 Conclusion 22 References 23 Book references 23 Web references 24 1. Introduction With the increase of trading activities within the people the banks came to play with a major importance. The below report consist of an analysis of one of the major commercial banks in Sri Lanka, which is Bank of Ceylon , popularly known as BOC. The report analyses the role and function of Financial Information within the company and the importance of carrying out a competitor analysis. In doing so the first part of the report consists of an analysis of the company as well as the industry. This further extends to identifying and analysing the financial data and how...
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...Company History TD bank for more than 150 years, has been providing excellent customer service .They have a model of wowing the customer. This wow Factor has bin embedded in the the Td culture since the beginning the bank.The bank first opened in 1852 as Portland Savings Bank in Portland, Maine. Later on grew through many mergers and became Peoples Heritage Bank in 1983. The opportunity for expanstion came up ,as Peoples Heritage Bank, by going through some acquisitions, there growth grew deeper into New England and took the name Banknorth. In Cherry Hill, New Jersey-based company called Commerce Bank was turning heads and getting a lot of attention. The customers that they had already were turning into fans as America’s Most Convenient Bank. Commerce Bank was Founded in 1973,The founder Vernon Hill was a CEO of a well know food chain called Burger King. Commerce Bank rapidly grew over the next 35 years into Philadelphia. New york ,south florida and Washington DC. Since the CEO was from burger king he brought many of his traditions to Commerce. For example longer house and being customer friendly and giving them what customer want. In this model commerce , began winning new customers with WOW! service and convenience. Bank north, In 2004 began to caputure the attention of many other banks. In doing very well and being one of the top 10 banks in the Unites states. In doing this it grabbed the attention of TD Bank group of Toronto. TD bank group shortly after became a large...
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...merica Corporation. Assessment of the external environment of the financial services sector; an internal/external assessment of B of A.; a strategy assessment; and recommendations to the Bank of America on how to maintain and strenghen its competitive position. Paper Introduction: strategic Management analysis bank of america Introduction The report presents the findings of a strategic management analysis ofBank of America Corporation a financial services company that participatesin most facets of the financial services sector Bank of America is anationwide financial services company in the United States and the companyis the country's third largest banking company when measure by totalassets behind CitiGroup in first place and J P Morgan Chase in secondplace Hoover's Inc This report begins with an assessment of the external Text of the Paper: The entire text of the paper is shown below. However, the text is somewhat scrambled. We want to give you as much information as we possibly can about our papers and essays, but we cannot give them away for free. In the text below you will find that while disordered, many of the phrases are essentially intact. From this text you will be able to get a solid sense of the writing style, the concepts addressed, and the sources used in the research paper. Reliability in Service|.2 |3 |.6 |4 |.8 |3 |.6 ||Delivery | | | | | | | ||2. 8 |4 |.32 ||customer acquisition system | | | ||6. High-level of consumer awareness|.1 |4 |.4 ||3. Strong...
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...and highly efficient provisions for secondary market activities of securities. Origin of the topic This term paper originated as an academic requirement of BBA Program. This is authorized and organized by the department of BBA. After completion of the program period a student must submit the term paper on the assigned topic to the Supervisor and to the department. The program is three months duration. I was assigned to Dhaka Stock Exchange Limited, to complete the program. Objective of the study Objectives of this study are as follows- - To present an overview of Dhaka Stock Exchange. -To identify the trend line of DSE and that of those securities incorporated in DSE. -To identify the strength and performance of DSE 5 Banks. . -To compare among DSE 5 Banks. . -To develop the practical knowledge by the practical orientation of Work. Scope of the Study Scope of the study could be to understand contribution of stock exchange in economic development of a country. The economy of Ban in gaining in confidence and scope for development of capital market is gaining ground. If we can educate the investors regarding risk in management and adopt suitable legal measure to protect the investor’s interest, a substantial volume of saving of masses will flow into capital markets economic growth leads to increase national incomes and thus savings, which in turn are often channeled into the capital market. Limitation of the Study I have been provided with all necessary information at...
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