Porter's analysis considers the competition level among the leading companies

in an industry, then considers four other factors that affect the industry and the
success of companies within that industry

Buying Power of Buyers: Consumer bargaining power is frequently used by

the banking sector. Some people have greater influence than others. Individual
consumers, for example, especially those in the retail banking industry, have
limited negotiating power. This is due to the fact that the loss of a single
customer has little to no influence on the company's bottom line. Big groups of
clients, on the other hand, have more bargaining leverage since the bank cannot
afford to lose a large number of depositors. Corporate clients and high-net-
worth individuals (HNWIs) have more negotiating leverage since the loss of
large accounts and income streams can have a bigger impact on the bank's
profitability.

Bargaining Power of Suppliers: A bank's primary suppliers are two. The first
category consists of depositors, who provide the major source of money, while
the second group consists of the company's employees, also known as the
labour resource. Individual depositors pose little risk, just as consumer
bargaining power poses little risk. Major corporate clients, high-net-worth
individuals, and huge groups of depositors, on the other hand, are a significant
danger.

Rivalry among Competitors: The comparatively cheap cost of transferring

from one bank to another emphasises the importance of internal competition,
particularly in retail and commercial banking. Closing an account at one bank
and opening a new one at another doesn't cost much—in most circumstances,
nothing at all. To sweeten the deal, big banks provide deals to entice consumers
away from their competitors. Banks try to lure existing or new customers by
giving better customers by giving better facilities in terms of more interest rates
when depositing and less interest rate while giving a loan

Threat of Substitutes: In the banking sector, the danger of alternative goods

has grown as firms outside the industry have begun to offer specialised financial
services that were previously exclusively accessible from banks. Threat of New
Entrants: New entrants from within the banking business pose a little danger. It
is difficult for a new bank to break into the market and compete. In fact, a new
rival would face a number of substantial challenges, including the large amount
of money necessary, the time required to create a strong brand name, and the
onerous government rules that regulate bank operations. This industry does not
suffer any real threat of substitutes as far as deposits or withdrawals.

Threat of New Entrants: New entrants from within the banking business pose
a little danger. It is difficult for a new bank to break into the market and
compete. In fact, a new rival would face a number of substantial challenges,
including the large amount of money necessary, the time required to create a
strong brand name, and the onerous government rules that regulate bank
operations.