John Christian B.

Galvez

1. Use Porter's Five-Forces Model to evaluate competitiveness within the

Philippine banking industry. (15 points).

Threat of new entrants

New entrants are common in today’s banking industry, because many people
have the right to open different types of businesses as well as banks, it is not
difficult for people to establish themselves in the market, as a result more banks
are able to enter the economy being able to maintain themselves being one of the
competitors of other existing banks.

Threat of substitutes
Due to people being able to enter the market easily (new entrants) the rise of
other substitutes starts to get intense. People are given many choices for their banks,
making it that, it is now a competition of whose bank provides better service.

Bargaining power of buyers

Being able to be presented with numerous choices (threat of substitutes) banks
would always do something just for them not to lose their customer as well as
potential customers. Due to this circumstance, the customer is given a power of
choice or bargain, in which they insist for a better offer.

Bargaining power of suppliers

Of course, not only buyers have only the power to bargain but also suppliers. In a
bank setting depositor and its workforce are the two suppliers of banks, they have
the power to bargain but that would not necessarily mean that they would use it
against banks.

Intensity of competitive rivalry

Due to new entrants, lots of substitutes, and bargaining powers. Rivalries would
start to get more intense, for lots of banks are encountering these kinds of
struggles because this is normal for markets, it is just a matter of what bank are
able to handle these situations best.

2. Identify a recent economic, social, political, or technological trend

that significantly affects the local pizza hut. (15 points)

The most recent and common economic trend that significantly affected the local pizza
hut as well as other businesses, is the COVID-19 pandemic. Due to the pandemic, lots of
people loss their jobs, loss their source of income, in which some of these people who
lost their income flow are also customers/potential customers of pizza hut, making them
lose customers, and due to quarantine protocols, many restaurants have chosen to cease
operations temporarily for dining-in are strictly prohibited by the IATF.