Bank of America Corporation Porter Five Forces Analysis
Strategic Management Essays, Term Papers & Presentations
Porter Five Forces Analysis is a strategic management tool to analyze industry and understand underlying levers of profitability in a given industry. Bank of America Corporation managers can use Porter Five Forces to understand how the five competitive forces influence profitability and develop a strategy for enhancing Bank of America Corporation competitive advantage and long term profitability in Money Center Banks industry.
Brief overview of Bank of America Corporation
Bank of America Corporation is one of the leading firms in the Money Center Banks. Over the years Bank of America Corporation has redefined the ways of doing …show more content…
Porter Five Forces focuses on - how Bank of America Corporation can build a sustainable competitive advantage in Money Center Banks industry.
Bank of America Corporation Porter Five (5) Forces Analysis for Financial Industry
Threats of New Entrants
New entrants in Money Center Banks brings innovation, new ways of doing things and put pressure on Bank of America Corporation through lower pricing strategy, reducing costs, and providing new value propositions to the customers. Bank of America Corporation has to manage all these challenges and build effective barriers to safeguard its competitive edge.
How Bank of America Corporation can tackle the Threats of New Entrants:
By innovating new products and services. New products not only brings new customers to the fold but also give old customer a reason to buy Bank of America Corporation ‘s products.
By building economies of scale so that it can lower the fixed cost per …show more content…
Implications of Porter Five Forces on Bank of America Corporation
By analyzing all the five competitive forces Bank of America Corporation strategists can gain a complete picture of what impacts the profitability of the organization in Money Center Banks industry. They can identify game changing trends early on and can swiftly respond to exploit the emerging opportunity. By understanding the Porter Five Forces in great detail Bank of America Corporation 's managers can shape those forces in their favor.
5.2 Economic Analysis II
KPI 1 = loan of bank / project volume = $350 558 456 / $10 249 999 997,17 = 0.03420082498 ≈ 3.4%.
KPI 2 = corporate loan project * operating costs / total assets = $350 558 456 * $54 951 000 000 / $2 187 702 000 000 = $ 8 805
Strategic Management Essays, Term Papers & Presentations
Porter Five Forces Analysis is a strategic management tool to analyze industry and understand underlying levers of profitability in a given industry. Bank of America Corporation managers can use Porter Five Forces to understand how the five competitive forces influence profitability and develop a strategy for enhancing Bank of America Corporation competitive advantage and long term profitability in Money Center Banks industry.
Brief overview of Bank of America Corporation
Bank of America Corporation is one of the leading firms in the Money Center Banks. Over the years Bank of America Corporation has redefined the ways of doing …show more content…
Porter Five Forces focuses on - how Bank of America Corporation can build a sustainable competitive advantage in Money Center Banks industry.
Bank of America Corporation Porter Five (5) Forces Analysis for Financial Industry
Threats of New Entrants
New entrants in Money Center Banks brings innovation, new ways of doing things and put pressure on Bank of America Corporation through lower pricing strategy, reducing costs, and providing new value propositions to the customers. Bank of America Corporation has to manage all these challenges and build effective barriers to safeguard its competitive edge.
How Bank of America Corporation can tackle the Threats of New Entrants:
By innovating new products and services. New products not only brings new customers to the fold but also give old customer a reason to buy Bank of America Corporation ‘s products.
By building economies of scale so that it can lower the fixed cost per …show more content…
Implications of Porter Five Forces on Bank of America Corporation
By analyzing all the five competitive forces Bank of America Corporation strategists can gain a complete picture of what impacts the profitability of the organization in Money Center Banks industry. They can identify game changing trends early on and can swiftly respond to exploit the emerging opportunity. By understanding the Porter Five Forces in great detail Bank of America Corporation 's managers can shape those forces in their favor.
5.2 Economic Analysis II
KPI 1 = loan of bank / project volume = $350 558 456 / $10 249 999 997,17 = 0.03420082498 ≈ 3.4%.
KPI 2 = corporate loan project * operating costs / total assets = $350 558 456 * $54 951 000 000 / $2 187 702 000 000 = $ 8 805