Banking - Five Forces Analysis

Banking - Five Forces Analysis

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Short description of Porter's Five Forces analysis for…

Intensity of Existing Rivalry

Large industry size (Banking) Large industries allow multiple firms and produces to prosper without having to steal market share...
Relatively few competitors (Banking) Few competitors mean fewer firms are competing for the same customers and resources, which is a...
Fast industry growth rate (Banking) When industries are growing revenue quickly, they are less likely to compete, because the total...
Exit barriers are low (Banking) When exit barriers are low, weak firms are more likely to leave the market, which will increase the...

Bargaining Power of Suppliers

Diverse distribution channel (Banking) The more diverse distribution channels become the less bargaining power a single distributor will...
Inputs have little impact on costs (Banking) When inputs are not a big component of costs, suppliers of those inputs have less bargaining power....

Threat of Substitutes

High cost of switching to substitutes (Banking) Limited number of substitutes means that customers cannot easily switch to other products or...
Substitute is lower quality (Banking) A lower quality product means a customer is less likely to switch from Banking to another product or...
Substitute product is inferior (Banking) An inferior product means a customer is less likely to switch from Banking to another product or...

Bargaining Power of Customers

Buyers require special customization (Banking) When customers require special customizations, they are less likely to switch to producers who have...
Low buyer price sensitivity (Banking) When buyers are less sensitive to prices, prices can increase and buyers will still buy the product....
Large number of customers (Banking) When there are large numbers of customers, no one customer tends to have bargaining leverage....

Threat of New Competitors

High sunk costs limit competition (Banking) High sunk costs make it difficult for a competitor to enter a new market, because they have to...
High capital requirements (Banking) High capital requirements mean a company must spend a lot of money in order to compete in the...
Industry requires economies of scale (Banking) Economies of scale help producers to lower their cost by producing the next unit of output at lower...
Patents limit new competition (Banking) Patents that cover vital technologies make it difficult for new competitors, because the best...
High learning curve (Banking) When the learning curve is high, new competitors must spend time and money studying the market...

What is Porter's Five Forces Analysis?

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