a) Apply Porters 5 Forces to the blockchain platform.

What will be the key

success factors? Is it likely to be a concentrated or fragmented (1, a few or
many different platforms?) What about barriers to entry? Will profit be sucked
out by technology licence suppliers? Conclusion on profitability?

Porter's Five Forces analysis can be applied to the blockchain platform as follows:

1. Threat of New Entrants: The threat of new entrants to the blockchain platform
market is relatively high due to the open-source nature of blockchain
technology. However, it is also a highly complex and specialized market, which
could deter new entrants.
2. Bargaining Power of Suppliers: The bargaining power of suppliers in the
blockchain platform market is relatively low, as blockchain technology is open-
source and freely available for use.
3. Bargaining Power of Buyers: The bargaining power of buyers in the blockchain
platform market is relatively high, as there are many blockchain platforms
available and buyers have the option to switch between them.
4. Threat of Substitutes: The threat of substitutes in the blockchain platform
market is relatively low, as blockchain technology is unique and has no direct
substitutes.
5. Competitive Rivalry: The competitive rivalry in the blockchain platform market
is relatively high, as there are many different platforms available and
competition is intense.

Key success factor would be a unique features, security, scalability, ease of use,
and interoperability.

b) Apply Porters 5 Forces to FX front office. Is it likely to be a concentrated or

fragmented (1, a few or many different traders? How easy will it be to
differentiate? What about barriers to entry? Supplier power?) Conclusion on
profitability?

Porter's Five Forces analysis can be applied to the FX front office as follows:

1. Threat of New Entrants: The threat of new entrants to the FX front office market
is relatively high, as there are low barriers to entry and many new players can
enter the market. However, regulatory requirements can be a barrier to entry for
new players.
2. Bargaining Power of Suppliers: The bargaining power of suppliers in the FX front
office market is relatively low, as there are many different suppliers of trading
software, market data, and other services.
 3. Bargaining Power of Buyers: The bargaining power of buyers in the FX front
office market is relatively high, as there are many different traders and financial
institutions that can choose between different platforms and services.
4. Threat of Substitutes: The threat of substitutes in the FX front office market is
relatively low, as there are few direct substitutes for trading platforms and
services.
5. Competitive Rivalry: The competitive rivalry in the FX front office market is
relatively high, as there are many different traders and financial institutions
competing for market share.

2) Building on your Porters 5 Forces analyses, do you think the main platforms will
be
i) independent Fintech companies – can’t say/maybe?
ii) profit-making consortiums of major banks like Visa/Mastercard launches - yes
iii) non-profit (like Android or Bitcoin)? - yes
3) What would be the impact on ANZ?
What is ANZ’s current competitive advantage (vs e.g. JPMorgan) in the FX market in
Hong Kong? Do you think it’s back office cost is higher or lower than JPMorgan?
ANZ’s current competitive advantage – Front office
JP Morgan competitive advantage – Back office (Technology investment)

• In our "What If" world, will it have more or less profit? – less profit
• Is blockchain technology an opportunity or a threat to ANZ? –not a big
threat to ANZ’s front office as much as it is to JP Morgan.
• Where will technology provide a lasting first mover advantage? Where will
fast follower be a better stance – for ANZ – fast follower seems better

4) Based on seeing this one possible outcome, what would you advise ANZ to invest
in now?

• What should they do about blockchain? – they should leverage their

customer relationships and A$/NZ$ expertise by investing in front office
fintech and not blockchain.
• Blockchain can be implemented anytime but there is no advantage in
investing it at the moment.
• Can join a consortium – would cost less, rather than investing a large
amount.
• Are there other technologies that they should invest in instead?

To conclude, ANZ should invest in data analytics and front office to leverage the
already existing advantage that it has since investing in a technology like BlockChain
may be beneficial for JP Morgan since they have the technology and investments in
place. ANZ need not be the first mover in the BlockChain space, can see how it works
for JP Morgan and implement that strategy