PORTER’S FIVE FORCES MODEL OF COMPETITION

Threat of Competitors
 Large number of banks
 High market growth
rate
 Low switching costs
 Undifferentiated
services
 High fixed cost
 High exit barriers

Bargaining power of Bargaining power of

suppliers is very low buyers is very high

 Nature of suppliers  Large number of

 Few alternatives Intensity of rivalry alternatives
 RBI rules and is low  Low switching
regulations costs
 Suppliers are not  Undifferentiated
concentrated services
 Forward integration  Full information
about the market

Threat of Substitutes

 Non- banking financial

sector increasing
rapidly
 Deposits in posts
 Stock market