In: Economics
Note: Write INDUSTRY OVERVIEW by following below questions about "Commercial Banking Industry - Chase Bank". you can use any Reference. This is kind of presentation formate so please give me good overview with good amount of information about Chase Bank. Thank You
INDUSTRY OVERVIEW (Competitive Opportunities and Threats)
If multi-product company, analyze the dominant product and its industry. Summarize the industry environment for favorableness. The following checklist should help you:
Industry size: Dollar sales volume (also volume in units, if available)
Industry growth: Rate of growth in percentage terms (increase in industry sales averaged for five-year period). Where is the industry in the life cycle - emerging, rapid growth, maturity, decline?
Competitive Segments : Is the end product highly differentiated (e.g., toothpaste—low price, medicinal, whitening, good tasting)? If so, entry from outside the industry is difficult.
Growth of Segments : Are there segments within the industry growing faster than others? If so, threats of entry from other segments may be high.
Technological Change : Is the industry technology changing rapidly? Are there segments where it is changing more rapidly?
Ease of entry : Analyze cost, differentiation, and transaction advantages enjoyed by incumbent firms. Based on this analysis, rate entry threats as high, medium, or low.
Rivalry : Assess the degree of rivalry in each segment. How does competition occur?
Solution
1. INTRODUCTION
In this project question I am taking Commercial Banking Industry - Chase Bank That comes under the financial service sector. JPMorgan Chase Bank doing business as Chase Bank. it is a national bank headquartered in Manhattan, New York City, that constitutes the consumer and commercial banking subsidiary of the U.S. multinational banking and financial services holding company, JPMorgan Chase. This bank was known as Chase Manhattan Bank until it merged with J.P. Morgan & Co. in 2000.
2. PRODUCTS OF BANK
Products of banks are given as follows -
3. PORTER' S 5 FORCES MODEL
Elements of the Porter's 5 forces model are given as follows -
1. Threats of new entrance
2. Threats of new substitutes
3. Bargaining power of buyers
4. Bargaining power of suppliers
5. Rivalry among existing competitors
(a) THREATS OF NEW ENTRANCE
In the new entrance industry have the threats of new entries in the market. In this analysis industry have to focus on product and services in an effective manner so that new entrance cannot overpower the industry. New entry always give a challenge to the older organizations so company should make effective strategies for dealing with the new entries in the market.
(b) THREATS OF NEW SUBSTITUTES
New substitute are those products which can be purchased at the place of the old product. So in the industry analysis there should be proper strategies for the substitutes of the products. Organization should prepare itself for the options of the substitutes because customer can easily attract for the substitutes. For example - a man who used to drink coffee can go for green tea also. This kind of change called substitute change.
(c) BARGAINING POWER OF BUYER
When buyers use his or her bargaining power then it can be treated as threat for the industry. So organization should make strategies for dealing with this. Buyers have the capacity to bargain with the retailer so organization should make strategies well in advance for dealing with the bargaining power of buyers.
(d) BARGAINING POWER OF SUPPLIERS
Bargaining power of suppliers is also one of the most important aspect of the industry analysis. Before entering into the new market organization should focus on this. Suppliers also affect the industry and organization so company should make strategies for dealing these kinds of issues and bargaining power of suppliers. Suppliers should not affect the price of the product and services which is decided by the organization.
(e) RIVALRY AMONG EXISTING COMPETITORS
Rivalry among the existing competitors is also one of the most important phenomenon of the industry analysis. Industry should have the complete knowledge of the existing competition of the market. Organization should prepare well in advance for dealing with the competitors of the market. In each and every area of business competitors are there so company should make best strategies for dealing with the competitors.
4. SEGMENTS OF INDUSTRY
HIGH CATEGORY SEGMENTS
MEDIUM CATEGORY SEGMENTS
LOW CATEGORY SEGMENTS
5. ATTRACTIVENESS OF THE INDUSTRY
On the basis of the given segments of the industry analysis we can say that, organization can attract customers on the basis of the best quality product and services. Quality services helps the organization in gaining the competitive advantage and customer satisfaction. On the basis of the segment analysis we can say that for industry it is possible to move from one segment to another because all are interrelated to each other. Effective strategies are required for this movement. And it depends on the organization's product and services, which segment is more favorable for the organization
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