This report provides a comprehensive analysis of the Australian banking industry, focusing on the application of Porter's Five Forces framework. The analysis examines the industry's competitive environment, including the threats of new entrants, substitutes, and the bargaining power of suppliers and customers, as well as the rivalry among existing competitors. The report highlights the dominance of the four major banks in Australia and discusses the impact of government regulations and market dynamics on the industry's profitability and competitiveness. The study also explores the external environment influencing the banking sector and concludes with recommendations for strategic positioning. The report aims to understand the key variables within the external environment that influence the banking industry and to provide insights into the macro-environmental variables that might influence the performance of the financial industry. The report is contributed by a student and is available on Desklib.