Evaluation of Banks Using Porter's 5 Forces

The suppliers of Tesco PLC are interested in the level of customers. As the suppliers will be able to sell more stock such as food to cover the number of customers at Tesco PLC. Therefore, there will be more awareness for the supplier so more work can come to the suppliers. Meaning that the supplier will earn more revenue from being more well-known due to supplying stock to a business as big as Tesco PLC. The suppliers would also be interested in maintaining relationships with Tesco PLC and to have the best interest deal. And finally, to be paid on time so then the suppliers will trust Tesco PLC on future orders.

This article was really interesting as it discussed a matrix developed for creating strategies by a professor at Harvard. Michael Porter the creator, discussed the notion of how powerful this tool is because companies or organizations look at competition too narrowly. The five competitive forces include:

Bargaining Power of Customers: Tesco frequently consults their suppliers and discuss pricing arrangements. Tesco also ensures that all aspects of their supply chain benefit from their relations with Tesco.

4.7. Which of Porter’s four competitive strategies does apple engage in? Explain. Out of the four competitive strategies according to Porter, Apple engages in a focused differentiation strategy. Apple has been very successful by creating different products and services from competitors that are innovative, high quality, and user-friendly. From their unique product designs, to their state-of-art development of operating systems and software, Apple’s has continuously exceeded the evolving consumer demand in the current market. Furthermore, due to their open and inviting sales floor at their retail locations, genius help desk, and well trained sale peoples, Apple has welcomed more than a billion customer

2. How Porter's Five Forces of Competition impact the company Porter set out his famous Five Forces model in chapter 1 of his 1980 Competitive Strategy: Techniques for Analyzing Industries and Competitors, which has now become the dominant paradigm for the "Structural Analysis of Industries." The model places supply chain forces on the horizontal access and market structure vertically above and below industry competition, which they all point to as the center of potential profitability (Hitt, Ireland and Hoskisson,

1. Introduction In New Zealand, banks was established to serve the finacial need of people in the period of be settled by European. Nowadays, New Zealand is one of the most competitive and flexible banking industries in the world because of environment and banks’ strategic capabilities. In this assigment, the broad macro-environment that influences banking industry will be analysed through PESTEL framework and Porter’s five forces. There are large banks in New Zealand such as ANZ bank, BNZ bank, and Kiwibank; however, just Kiwibank are deeply analysed in this assignment. Moreover, through Porter’s five forces, there are identification and discussion of the relative importance for Kiwibank. Furthermore, the analysis of Kiwibank’s strategic

According to Porter (1985) a company can apply three generic types of strategies to protect itself while competitive force is a key issue of the management. To achieve this position a strategy based on competency must be accomplished

Porter (1980) identified some competitive forces that shapes and fosters competition in a market and determines the inherent long run attractiveness of a market. He also said that, this analytical tool could be effectively used to understand the industry level situation. However, the findings based on the Porter's model clarify that, the company has strong competitive situation now in the UK as ASDA has strong rivals like; Tesco, Sainsbury's, Morrisons etc.

“Porter’s five forces”: Introduction. “Porter’s five forces” is widely applied in today’s business world. Harvard Professor Michael E. Porter’s first HBR article “How competitive forces shape strategy” was published in 1979. It became revolutionary in the field of strategy. Porter’s subsequent work has brought big changes to the study of competitive strategy for corporations, regions, and nations. With assistance from his colleagues from Harvard Business School, Porter continues to update and extend his classic work, providing practical guidance for

There are two schools of thought pertaining to how firms should choose the competitive strategy that best suits them. One is of the opinion that firms should choose one of the generic strategies and commit all resources to making it work. Porter belongs to this category. They believe that the value chain necessary for cost leadership is quite different from that of differentiation strategy and that while differentiation deals with better quality, cost leadership deals with lowering costs wherever possible.(DESS and DAVIES 1984) What porter articulated here is that there is need for strategic clarity.

Porter (1980) created a model which considers five important forces (Porters five forces) which aims to establish a profitable and sustainable position against the forces that determine industry competition, therefore position themselves within it and differentiating themselves where necessary in order to strategically gain a competitive advantage - this model gives vision of: Threat of new entrants, Threat of substitute products or services, Bargaining power of customers , Bargaining power of suppliers and Intensity of competitive rivalry (Porter 1980). Using models and academic theory like this allows strategy to be formed through a rational and an analytical process. Chandlers (1962) cited in (Lomash 2003) suggests the analytical process is about the determination of long-term clear goals, adopting actions to achieve these goals and then building the resources within the organization around this strategy in order to ensure it succeeds. Johnson (2005), likewise, simply suggested a three step approach to strategy - analysis, choice and implementation which goes hand-in-hand with intended strategy.

This report compares financial performance of two major banks of UK i.e. HSBC Bank Plc and Barclays Bank Plc on the basis of their Balance sheets and profit and loss accounts for the year 2009. This report also provides SWOT analysis of both banks i.e. HSBC and Barclays Bank Plc and provides an insight into their Banking Strategies.

To attain competitive gain, organisations can differentiate their merchandise and services from their competitors they can also choose to lower their costs in order to compete with other contenders. By aiming their produces to a wide-ranging target, they are essentially covering most of the marketplace or if they choose, they can decide to concentrate on a narrower target within the market (Lynch 2003). While doing so may reduce their market range it essentially reduces their other competitors. Porter stated that there are three generic strategies that an organisation can follow to achieve competitive gain over other organisations. These are:

Strategy can be defined as being different from one’s competitors, finding the race to operate and accomplished it. According to Michael Porter (1996), while becoming better at what you do is desirable, it will not benefit you in the long run because it is something other competitors can also do. Strategies for organizations are originally developed by Michael E. Porter in 1979 by introducing the five forces model. A company can identify the industry profitability and attractiveness by analyzing the five forces of Porter (Johnson et al., 2008). And then a reasonable strategy can be set up in line with the strengths and the weakness of an organization is able to create a plan for a stronger position for the organization within its

Porter’s generic strategies describe how a company attains competitive advantage across its chosen market scope. There are three generic strategies-cost leadership, differentiation and