Porter's Five Forces Analysis: A Study of Chase Bank

This report provides a comprehensive analysis of Chase Bank using Porter's Five Forces framework. The analysis examines the bargaining power of consumers and suppliers, the threat of substitute products, the intensity of competitive rivalry, and the threat of new entrants within the banking industry. The study highlights the competitive dynamics influencing Chase Bank's market position, considering factors such as customer loyalty, supplier dependencies, the emergence of alternative financial services, competition from rivals like HSBC and Barclays, and the barriers to entry for new players. The report concludes with an assessment of the industry's overall attractiveness and discusses potential changes over time, considering the bank's long-standing presence, adaptability to market trends, and the impact of innovation on its strategic approach.

Running head: CHASE BANK
CHASE BANK
Name of the Student:
Name of the University:
Author Note:

1CHASE BANK
Introduction:
Chase Bank, or commonly known as the JP Morgan Chase Bank was founded in 1799.
Headquartered in New York, the bank had been in the industry for 221 years now. The bank has
changed itself with the changing trends of the country and through the processes of mergers and
acquisitions. Also, the innovation of and aspects of involving factors of diversity strategically
within the organizational conducts had effectively benefitted the organization (Craig,
Shackelford, & Hiller, 2015). However, the organization had come across a number of
organizational controversies over the time, and had achieved the highest of popularity and a good
amount of wealth, and along with that had achieved a god position in the market with a strong
employee and a loyal customer base.
Therefore in the following essay, the five forces analysis of the organization or rather the
industry will be conducted.
Five Forces Analysis:
The Chase Bank is a major banking organization providing some of the best banking and
financial services. The organization is involved in four major service areas, retail banking,
commercial banking, asset management and in the corporate investment. However, there are
number of organizations which are providing the similar forms of businesses. Therefore, in the
following, the porter’s analysis is presented in order to provide a complete understanding of the
position and the business of the organization.

2CHASE BANK
Bargaining Power of Consumers:
The bargaining power of the consumers is one of the most effective and important factor
that influences the market environment of the organization. Considering the organization it is
observed that the retail banking sector of the organization includes comparatively a little
bargaining power of the customers. It is because the loss of any one account has very minimal
impact on the market of the organization. However, considering all the other business options, it
can be said that the bargaining power of the customers of the organization is quite higher. As, the
loss of any of the sizable accounts of the organization can impact upon the organization
effectively, especially the corporate investment has a higher bargaining power of the customers
(Curtis et al., 2014). Therefore, in order strategically address this area, the organization has
introduced a number of offers and has included certain innovative approaches to increase the
affinity of the customers.
Bargaining Power of Suppliers:
The two main suppliers of the company are the depositors who supply the primary capital
to the organization. The other supplier is the employee base of the organization who provides the
company with labor and help the company in managing the capital and the resources of the
capital, that is, the customers. Considering the depositors, it can be stated that the bargaining
power of the suppliers is quite high. It is because of the deposits that the organization is existing
in the market. Therefore, the loss of any important depositor can prove to be harmful for the
organization. However, the organization considers the bargaining power of its other supplier to
be high, as it focuses more on the management of the employees. According to the organization,
the organization can gain newer employees but each employee holds good relationship with the
customers and the loss of one customer can lead to the loss of a potential depositor.

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Threat of Substitute Products:
There is an increasing threat of substitute products in the market. There are a number of
organization which do not belong to the sane industry but are providing with certain customized
financial services. For example, the financial services provide by Apple has proved to be a huge
threat to the company, as it now has started providing customized financial services to its
customers (Silver-Greenberg, Goldstein, & Perlroth, 2014).. However, chase bank is addressing
and acknowledging these attributes or problem situations by providing innovative financial
services. Like small business lending.
Competition of the Rivals:
The organization is faced with increasing competitions from the industry. Both
domestically and internationally the organization is faced with an immense competition from
other organizations. The major competitors of the organization are HSBC and Barclays. Further,
the aspect of switching costs is intensifying the competition for the organization (Silver-
Greenberg, Goldstein, & Perlroth, 2014). Therefore, in order to acknowledge the competitions of
the market, the organization has included three ways. First providing cutting edge offers to the
customers; and low cost services, and third by channeling their brand identity.
Threat of the New Entrants:
The treat of the new entrants are relatively small for the organization. According to the
researchers, it is difficult to enter the US market, especially in the banking sector. At the same
time, the customers are more tended to go to the trusted organizations when considering to
manage their investments, and the presence and the brand identity helps the organization to
attract and invite more numbers of customers. More importantly, the brand identity of the
organization and the time that the organization has spent in this industry has gained the

4CHASE BANK
organization a good employee and customer base (Cetorelli, McAndrews, & Traina, 2014).
Therefore, to replace the customers or the employees of the organization is not possible for the
new entries in the market. At the same time the organization provides cutting edge services to
both its customers and employees which cannot be provided by the newer companies of the
market.
Conclusion:
In the presented assignment a discussion has been proposed upon the Chase Bank, one of
the major banking organization of the world. The porter’s five forces of analysis has been done
upon the organization in order to understand the position of the organization in the market. The
organization generally holds a very strong position in the market, however, the current trends and
the changes of the market is proving to be quite challenging for the organization.
Changes over Time:
The organization is existing in the industry for more than 200 years now, therefore, it has
a strong and potential position in the market, abut at the same time, the organization has
undergone a lot of changes. With the changes in the society and in the industry, the organization
has changed itself, therefore the adaptation process for the organization has become quite easy
for the organization and has given the same with innovative ideas.

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References:
Cetorelli, N., McAndrews, J., & Traina, J. (2014). Evolution in bank complexity.
Craig, A. N., Shackelford, S. J., & Hiller, J. S. (2015). Proactive cybersecurity: A comparative
industry and regulatory analysis. American Business Law Journal, 52(4), 721-787.
Curtis, K. E., Porter, S. B., Davison, B. T., & Floricica-Voicu, A. (2014). U.S. Patent No.
8,723,833. Washington, DC: U.S. Patent and Trademark Office.
Silver-Greenberg, J., Goldstein, M., & Perlroth, N. (2014). Jpmorgan chase hack affects 76
million households. New York Times, 2.