Page 6 - Banking Industry analysis (H)
P. 6
The Banking Industry
The government tends Buyer bargaining power
after the crisis to be a is one of the biggest
supplier to the banks. forces in the banking
sector. A round-robin
Customer lack of faith in
situation exists due to
the banks oligopoly status quo.
High
Low
Banks need to create Substitutes are seen as
brand awareness through alternate services that
attractive products and offer basic banking
services. Oligopoly - it is services like investing
difficult for new entrants and saving. These
to enter given the high services are less
infrastructure costs regulated.
Medium Low
Oligopoly. Bank mergers
allowed pre-crisis with intense
competition. Then post-crisis
competitive rules eased
allowing banks to merge.
Medium
