MGT/576 v1 Porter’s Five Forces Complete the table below. For the company you’ve decided to assess in week 1, determine the strength of each of Porter’s Five Forces and the complementors. Justify your determination with examples. Strength Provide a justifying with your Industry force Example The threat entrants Hig Mediu h m Low x of new determination with examples This is why I believe it is medium. x The threat of new entrants is low because the banking industry offers a significant barrier to new start-ups. Capital is a significant barrier to new entrants seeking to establish a new bank (Temelkov, 2018). Investing in a banking business requires a considerable amount of capital and resources. Additionally, most banks and financial institutions build up contractual connections with suppliers to increase their access to the target clients. For example, the establishment of new banks put a low pressure on The Copyright2020by University of Phoenix. All rights reserved. Porter’s Five Forces MGT/576 v1 Page 2 of 6 Industry force Strength Provide a justifying with your determination with examples Bank of America because it has a solid financial position and a strong brand presence in the banking sector. The organization has a strong presence in the American financial market. In the client’s psychological content, switching is high in the banking sector. Besides, the banking sector’s existing brands have a loyal client base. Power of buyers x Buyer bargaining power is medium because customer switching in the banking sector varies from medium to high. Bank clients have the common market knowledge sensitivity(Sardana, and price 2018). The banking sector has two types of clients; corporate customers and individual buyers. The individual clients have weak bargaining power and a tiny impact on Bank of America’s operations. For example, a bank client may find it difficult to switch their bank because of the high cost of changing banks. Corporate buyers constitute a weak force because they engage banks in operating large projects. Corporate clients also face a high cost of switching since it is Copyright 2020 by University of Phoenix. All rights reserved. Porter’s Five Forces MGT/576 v1 Page 3 of 6 Industry force Strength Provide a justifying with your determination with examples difficult to find a bank that can offer them huge funds. Power of suppliers x Supplier bargaining power is weak because the banking sector offers no threat to supplier integration. The banking sector has many services and product suppliers, and hence they cannot bargain strongly (Hanafizadeh, 2018). Additionally, other investment entities can also entice and hire service suppliers like employees. For example, Bank of America requires highly specialized employees and other investment banks to hire staff. Suppliers have a weak force on Bank of America’s operations because they have the adequate market knowledge and are price sensitive. Capital suppliers are also many in the financial sector and have weak bargaining power. Power of substitutes x The threat of substitution is high in the banking sectors because other firms offer similar financial services. For example, Bank of America faces a considerable threat from other unconventional lenders that operate Copyright 2020 by University of Phoenix. All rights reserved. Porter’s Five Forces MGT/576 v1 Page 4 of 6 Industry force Strength Provide a justifying with your determination with examples lending schemes to enable buyers to get items at a lower price. Banks offer a range of services beyond lending and taking deposits. However, non-banking organizations pose a significant threat of substitution because they provide similar quality financial services to clients. Customers can get some banking services in income securities, insurance and mutual funds. Rivalry among x competitors The competition force is high because of the high level of exit barriers.
The post MGT 576 University of Phoenix Management Bank of America Porter’s Five Forces Analysis/ Assignment Help appeared first on BlueOrigin EssayWriters.
