Porter Five Forces: Banking and Wells Fargo Essay

Open, View, and/or
Download this Document

Total Length: 617 words ( 2 double-spaced pages)

Total Sources: 1

Page 1 of 2

Porter’s Five Forces model of analyzing any industry marketplace first assesses the overall level of competition of the industry actors, the threat of substitutes, the bargaining power of consumers, the bargaining power of suppliers, and the threat of new entrants into the marketplace (Maverick, 2020). Clearly, the banking industry at present is intensely competitive. Even the most casual observer of a typical city, suburban, or even rural area will see many banks making offers to potential customers, spanning from free checking accounts, to low interest rates on refinancing mortgages, or higher rates on CDs (Maverick, 2020). There are many small and regional banks. Wells Fargo is one of four major banks in the United States—JPMorgan, Citibank, Bank of America are the others—with a national presence (Maverick, 2020).

For these four banks, competition is intensive, and there is also the threat of some substitute products, including credit unions and other investment firms that permit consumers to engage in most basic banking functions. There is also often very low transaction cost switching from bank to bank, although switching one’s direct deposit paycheck from one bank to another, or IRA, may be a hassle, and some investment products such as mortgages or CDs can likewise force a consumer to remain with a bank for a specific duration.

The new online banking environment makes it possible for people to have banking accounts at branches that are not even a presence in their area. It also makes it easier for consumers to compare rates of different banks, and choose the best one that suits their needs.

Stuck Writing Your "Porter Five Forces: Banking and Wells Fargo" Essay?

View All Our Example Porter Five Forces: Banking and Wells Fargo Essay

Have A Custom Example Essay Written

Wells Fargo, in…

[…… parts of this paper are missing, click here to view the entire document ]

…for clients that significantly eroded many customers’ trust in the bank (Maverick, 2020).

The banking industry is unique in that consumers are effectively the suppliers of the bank in the form of revenue. Again, corporate clients and higher income investors can have a significant impact upon the bank’s future (Maverick, 2020). Employees would also be considered a supplier of necessary services to the bank. Although the economic environment may vary from location to location, bank employees can usually find work relatively easily at the locations of different rivals, at least at the lower levels of employment. Finally, in terms of the threat of new entrants, although this was considered relatively low, again, the presence of online money transfer firms substantially increases the likelihood of new actors entering the industry to challenge the four major….....

Show More ⇣

     Open the full completed essay and source list


OR

     Order a one-of-a-kind custom essay on this topic


sample essay writing service

Cite This Resource:

Latest APA Format (6th edition)

Copy Reference
"Porter Five Forces Banking And Wells Fargo" (2020, November 09) Retrieved May 22, 2025, from
https://www.aceyourpaper.com/essays/porter-five-forces-banking-wells-fargo-2175752

Latest MLA Format (8th edition)

Copy Reference
"Porter Five Forces Banking And Wells Fargo" 09 November 2020. Web.22 May. 2025. <
https://www.aceyourpaper.com/essays/porter-five-forces-banking-wells-fargo-2175752>

Latest Chicago Format (16th edition)

Copy Reference
"Porter Five Forces Banking And Wells Fargo", 09 November 2020, Accessed.22 May. 2025,
https://www.aceyourpaper.com/essays/porter-five-forces-banking-wells-fargo-2175752
   

Open, View, and/or
Download this Document
order custom essay example