Individual Case Analysis - Mellon
Individual Case Analysis - Mellon
1) What are the most important general environment factors to be considered for the industry and the company and what is their effect (positive-negative-neutral)? What is your evidence for the importance of these factors?
• Economical – Neutral – Sometimes for a positive and sometimes for a negative result, the economy is a crucial factor in the banking industry because it is the backbone to it. In a down market there is often less business and less ability to do business and visa versa.
• Global Factors – Neutral – Much like the economic factors, world events can create trigger a ripple effect in the banking industry. Changing markets, political changes and cultural changes can all directly affect the banking industry for better or for worse through new sanctions, regulations and overall barriers.
2) What are the most important of the five industry forces affecting the industry and the company and what is their effect (high-moderate-low)? What is your evidence for the importance of these forces? Is the industry attractive for new entrants and incumbents?
• Intensity of Rivalry Amongst Competitors – High – There are numerous competitors of similar market size which increases rivalry. This is a slow growth industry which also puts pressure on rivalry along with little differentiation within the industry.
3) List two major competitor(s) and briefly predict the significant future action(s) of each competitor. What is your evidence for their importance?
• Toronto Dominion Bank – Toronto Dominion Bank (TD) ranks among the top financial firms in the world and is one of the largest banks in Canada with over 2400 branches in North America. It also owns 45% of Ameritrade. I believe with its impressive position in North America it will keep growing to expand throughout all of the united states instead of just the 15 that it occupies now. With our economy on the slow rise it will be a good time to gain the property and then to
1) What are the most important general environment factors to be considered for the industry and the company and what is their effect (positive-negative-neutral)? What is your evidence for the importance of these factors?
• Economical – Neutral – Sometimes for a positive and sometimes for a negative result, the economy is a crucial factor in the banking industry because it is the backbone to it. In a down market there is often less business and less ability to do business and visa versa.
• Global Factors – Neutral – Much like the economic factors, world events can create trigger a ripple effect in the banking industry. Changing markets, political changes and cultural changes can all directly affect the banking industry for better or for worse through new sanctions, regulations and overall barriers.
2) What are the most important of the five industry forces affecting the industry and the company and what is their effect (high-moderate-low)? What is your evidence for the importance of these forces? Is the industry attractive for new entrants and incumbents?
• Intensity of Rivalry Amongst Competitors – High – There are numerous competitors of similar market size which increases rivalry. This is a slow growth industry which also puts pressure on rivalry along with little differentiation within the industry.
3) List two major competitor(s) and briefly predict the significant future action(s) of each competitor. What is your evidence for their importance?
• Toronto Dominion Bank – Toronto Dominion Bank (TD) ranks among the top financial firms in the world and is one of the largest banks in Canada with over 2400 branches in North America. It also owns 45% of Ameritrade. I believe with its impressive position in North America it will keep growing to expand throughout all of the united states instead of just the 15 that it occupies now. With our economy on the slow rise it will be a good time to gain the property and then to