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  • Porter's 5 Forces: Customer Bargaining Powers

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    Mirza Galib
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    The document analyzes Porter's Five Forces model of competition for Bank Asia. It finds that the bargaining power of customers is high due to the number of banks in Bangladesh and low switching costs. The threat of substitute products is also high from non-banking financial institutions. The degree of rivalry in the banking industry is high as banks compete on pricing, advertising, products, quality, and customer service. The threat of new entrants is moderate unless new banks can gain a significant advantage over existing banks.

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    5 forces model

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    The document analyzes Porter's Five Forces model of competition for Bank Asia. It finds that the bargaining power of customers is high due to the number of banks in Bangladesh and low switching costs. The threat of substitute products is also high from non-banking financial institutions. The degree of rivalry in the banking industry is high as banks compete on pricing, advertising, products, quality, and customer service. The threat of new entrants is moderate unless new banks can gain a significant advantage over existing banks.

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    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
    34 views1 page

    Porter's 5 Forces: Customer Bargaining Powers

    Uploaded by

    Mirza Galib
    The document analyzes Porter's Five Forces model of competition for Bank Asia. It finds that the bargaining power of customers is high due to the number of banks in Bangladesh and low switching costs. The threat of substitute products is also high from non-banking financial institutions. The degree of rivalry in the banking industry is high as banks compete on pricing, advertising, products, quality, and customer service. The threat of new entrants is moderate unless new banks can gain a significant advantage over existing banks.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
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    Five forces model of competition (Bank Asia)

    Bargaining power of
    Supplier
    Customer Bargaining
    [Moderate]
    Powers
    Porter's
    The depositors are the main suppliers of
    [High] funds for the banking industry. The
    bargaining power of depositors is high in the

    5
    Clients possess a higher banking industry in Bangladesh due to the
    bargaining power because of a following factors: After a few years of
    liquidity, suddenly the banking industry is CourseTitle: Strategic Management
    relatively low switching cost due

    Forces
    facing a liquidity crisis. Due to this,
    to the number of banks present depositors possess significant powers as CourseCode:MGT-600
    in the industry. different banks are approaching them for Sec: 02
    deposit offering higher interest rates . Summer 2020

    Threat of substitute Degree Of rivalry Submitted To:


    Threat of new Dr. Md. ZahidHossain
    products entrants [High} East West University
    [High] [Moderate] Competing for position
    Some of the banking industry’s whereby Bank Asia use tactics Submitted By:
    Unless the entry of new banks like price competition,
    largest threats of substitution and financial institutions are
    advertising battles, product
    Mirza Galib
    are not from rival banks but from made significant edge over new
    introductions, quality ID: 2017-3-95-017
    nonbanking financial entrants are maintained,
    competition will further competition and increased
    institutions. customer service.
    increase, impacting the portfolio DateofSubmission: -16th July,2020
    and profitability.

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