Page 26 - Flip Banks TG

ISSUE 1

ISSUE 1: Barclays: Environment

(External/Internal)

Porter’s Five Forces analysis allows a quick appreciation of

the forces acting on the balance of power in the banking

market and whether they are high, medium or low in

impact.

Industry rivalry (Diagram 1) is high where the ‘big four’

players all have substantial market presence. However,

Barclays has an important advantage in its total coverage of

the USA accrued through its earlier acquisitions.

However, the threat of substitutes posed a problem for the

industry as a whole as all banks offer a similar product
where switching costs are low at a time when customer

loyalty is declining.

Mobile banking and the internet were likely to prove the

battlefield upon which bank success or failure is founded.