Marketing & Management | Assignment

Marketing &
Management

MARKETING 1
Question 1
Porters Five Forces Model
Michael Porters is an American academic who is known for his theories and models
which is related to business strategy and social causes. The leader implements the different
strategy but its main strategy is related to the competitive advantage. He introduced the Porters
strategy that helps the company to gain the competitive advantage. There are two models which
are related to competitive advantage such as porters five forces model, and porter generic
strategy. In porter’s generic strategy, there are three strategies that the company has to implement
for competitive advantages such as differentiation, cost leadership and focus strategy (Porter,
2008). In the real life, Bank industry of Honkong has been taken into consideration to understand
the model of porter’s five forces that helps to gain the competitive advantage.
Porters Five Forces Model
Porters Five Forces is a framework that helps to identify and examine the five
competitive forces that shapes each and every industry. It also helps to evaluate the industry
weaknesses and strengths which is required for the company to examine in order to survive in the
market for long term basis. This model is applied in different segments of the economy that helps
to learn the level of competition within the industry and improves the long term profitability. It is
also known as Harvard Business School Professor, Michael E. Porter. It is a analysis of business
model that supports to explain the various industries that are capable to sustain the different level
of profitability. The Bank of East Asia also implements this model to attain the competitive
advantage (Bell, Dyck, & Neubert, 2017).
The Bank of East Asia

MARKETING 2
The Bank of East Asia Limited is a Hong Kong based banking and financial services
company. It is the largest self-governing local Bank of Hong Kong. It is one of two remaining
family run Hong Kong banks. The company gets the high brand image in the market and
recognized as the largest bank in Honkong Market (BEA, 2019). The company attains the
competitive advantage in the market and it also implements the porters five forces model in order
to shape the competitive forces. The Porters Five Forces Model has been implemented in the
organization to examine the industry and competitive environment.
Porters Five Forces On the Bank of East Asia
The threat of new entrants
The threat power of new entrants is high as it required the high capital to establish the
business of Bank. It is not possible for an individual to invest the large amount for establishment
of Bank that is why; it required to have one or more partners that help to invest in the company.
The other challenge that the new entrants is face the legal obligations. It is observed that the
government of all over the world and the government of Honkong put high restriction on the
banks related to registration of the Bank. No one can easily establish the business in the Banking
industry they faces the challenges because government would not allowed to anyone to open the
financial institutions. These are the reasons that define the risk level of new entrants
(Rothaermel, 2017).
The threat of competitors
The three degree of competitors is moderate as there are limited numbers of banks in the
banking industry of Honkong but those all the banks try to beat each other in order to beat in
competition such as Hang Seng Bank Limited, Commercial Bank Plc, Fubon Bank Limited and