Question

write about chase bank as a whole, Growth of  Segments :    Are there segments within the industry growing faster than others?   If so, threats of entry from other segments may be high.

Answer 1

Chase bank is one of the leading Bank of United States of America and it has merged with JP Morgan in order to form JP Morgan Chase bank and it has shown a consistent upside movement because of higher growth in its overall activities which is around 12% in past few years. The shares of this company has also gained a substantial momentum in past five years and it has considerably doubled.

when the growth of segments of the JP Morgan Chase Bank as a whole is considered then, it has four segments-

A. Consumer and community banking

B. Corporate and investment banking

C. Commercial banking

D. Asset Management

All these four segments has performed exceptionally well in past few years because consumer and community banking has grown averaging 8% in past 5 years for corporate and investment banking has grown around 15% in last 5 years whereas commercial banking and Asset Management growth has also been in double digits.

The growth of these segments within the industry is growing faster than the others because this is one of the premium bank and it is showing the sign of leadership in the whole industry.

yes, there are threat of entry from other segments as well because this bank is reporting phenomenal well on a group basis so it may be trying itself into other sophisticated segments as well because it has ample profits and cash on its hand so these banks can be using them in order to expand themselves and try other segments.