INDUSTRIAL ANALYSIS PROJECT

industrial_analysis x

Running Head: MARKETING 1

MARKETING 9

Industrial analysis

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Introduction

The banking industry will be the main topic of my discussion

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It has widely been known and under the banking industry there are other many industries that have come up due to it. Its main activity is in the product and services offered is the investment service, inter alia TT, currency savings, foreign exchange, trade financing, floating, money market instruments, and underwriting of shares and bonds (Heffernan, 2005). Many people are looking into the banking industry to be able to develop and manage diverse businesses worldwide. The banking sector is a wide scope of study and involves many categories. This are listed as the retail banking, mobile banking and investment banking

Overview

The financial world is changing meaning a number of banking sector will be affected in the near future. The banking sector is mostly grouped into the public and the private one.

The problems facing the baking industries

Management in time of memorial has been the main problem facing the banking sector. A number of banks have collapse due to the employment of unqualified personnel in the managerial departments in the banks. There are a number of cases arising in bankruptcy among many banks worldwide. Management is a wide scope in Nanking and it involves the

Data security is also an issue in the banking sector. Many people have discovered that the only way to enrich themselves id to steal from the banking sector because it is the main determinant in the capital or financial flow in the world. With the existence of the technological innovation and electronic advancement in the banking sector, many people are trying to intelligent programs to gain data from the banking sector.

Employee training and retention is also an issue. Many people employed in the banking sector do not have the quality and competence to perform the duties and offer quality services pertaining the banking sector.

The diseconomies of scale are another problem to be experienced in the banking sector. This regards the situation in which the economies of scale not functioning in the banking sector. When the output is increased then the marginal is observed to be increasing (Eubanks & Library of Congress, 2005). They specifically occur due to an increasing in the output then there is an increase to be experienced in the distant market making the offset in any economies of scale.

Many customers to are expecting more form the banking industries due to the technological innovations and the banking does not provide faster feedback as demanded by the customers. This has been the problem in the banking sector for quite some time.

The political power consideration also has been an issue in the banking sector. Many states are regulated by the government on matters concerning the banking managerial and strategies (Eubanks & Library of Congress, 2005). Sometimes it becomes hard since they have been limited into certain boundaries. This also limit the way the banking sector can the availability of opportunities to increase its production.

Competitive structure

The competitive structure relates on how the environment has given the banking sector an opportunity to perform its duties willingly and in a good manner. The structure to be observed in the banking sector are the

The structural determinants of competition: competition is there to ensure that the rate of return is altered to the negative direction. The attendance of rates of return superior to the adjusted free market return serves to motivate the inflow of capital into the banking industry either by new admission or through supplementary investment by presented competitors (Heffernan, 2005). The potency of the competitive forces in the banking industry determines the amount to which this inflow of investment drives the return down to the free market level, hence the ability of firms to sustain above average returns.

Threat of entry is another structure that the banking industry has to take into consideration. The new ventures in the industry come with a motive to have in the market share and also in other resources; this entry of the new ventures will be determined by the existing competitors. The banking industry must look at the way in which they will bring out a competitive way that will make then stand over the new entries to reduce the load of competition

Competition 

Since the banking sector does a wider aspects in its services, the competition of the banking rises form a number of industries coming up to take the advantage of some of its services. The banking mismanagement in these activities has made rise to other industries offering completion.

Foreign exchange: The banking sector is offering a number of forex trading services but some of other competitors have come up and simplified the foreign exchange market (Thomas, 1997). Many online companies have come up with software that allows one to buy and sell the foreign currencies in a system called the forex trading. This trading finance has for time weakened the banking sector.

The other service of the banking sector is offering loans. The banking sector is experiencing competition in this service. Many organization and firms have come up promising the clients’ good amount of loans offered with less percentage in the interest return (VanHoose, 2010). So far it has created a massive competition in the banking sector.

Money market instrument is another field that the banking sector is experiencing a major competition. They have devised a more sufficient by means of borrowing and lending in the short term (VanHoose, 2010). They have simplified the services and made it faster for the people to be able to access acting as a challenge to the banking sector in the managerial activities in losing clients to what the bank needs to pass and establish as quick as possible.

Customers 

The banking sector experiences a number of customers daily both being individual and also the organizations. The banking sector is responsible for funding in a number of projects in the world now. A great percentage of the accountholders in the bank accounts are the people. The view of the customers will be based on the demographic and psychographics.

Demographics look on the individuals specifically as the potential customer. Most o the customers are aged between the age of 18 and above. Most of the people are paid through banking sector, a number of employees close to 90 percent. Also due to governments imposing taxation, they opt to use the banking sector to be able to help them in these activities. The banking sector experiences a number of customers. The population of the people in an area determines the flow of money and so in the geographical consideration in customer participation, cities are the best geographic places to where customers are available (Thomas, 1997).

In the part of psychographic it is more of the development of the people in the society in terms of their interest, life and their passion. Every development done is done to make man comfortable in the environment. The psychographic customers arise from organizational and sometimes individually (Thomas, 1997). Most of this organization looks to borrow a lot of money from the banks in order to facilitate the projects and developments within the society.

Size of your market

A lot of money circulates in banks. The banking sector is the one that determine the distribution money all over the state. The economy of the country also is more dependent to the banking sector and also the banking sector more dependent on the economy of the country. The value of the banking sector is determined by the amount of money the type of banks holds circulating around it. Of course also this money increase and also depreciates. I can quote that the money in this industry is millions and billions.

According to Thomas (1997), on the data distributed in the American state to act on behalf of the other state concerning the market size is given as

The size distribution of the banks in USA in the year 2002

100

Bank size (assets)	Number of banks	Share of all banks %	Share of all banks assets
Less than $ 100 million	4168	52.9	3.0
$100 million – $ 1 billion	3314	42.0	12.3
$1 billion – $ billion	325	4.1	13.2
More than $10 billion	80	1.0	71.5
Total	7887		100

It so far there is a total 7887 banks in USA in the year 2002 bank assets are ranging from millions to billion of money then it shows when comparing the whole world, the amount of money flowing in the banking industry is close to trillion. This is because all the money we use close to all of it comes from the banking sector distributed to the people and then come back to the bank (Thomas, 1997). The value of the banking industry is same and close to the value of the world.

PEST

The marketing environment overlooks the organizational structure of the banking industry. The elements of the marketing environment affecting the banking industry arise from the micro-environment and also the macro-environment.

In the macro-environment, what really affects the industry is for the global society. These are the political issues, culture, the natural environment, the demographic factors, economical issues and also the technology (Mullineux & Murinde, 2003).

The micro-environment deals with the individuals and organization close to the banking industry and the once that associate directly with the banking sector. They also affect the marketing in certain ways (Mullineux & Murinde, 2003). They are the suppliers, the banking sector itself, other marketing input agencies, the competitors, the market segments in which the banking sector is involved in trade and the customers that are not playing part in the organization.

Reference

Eubanks, W. W., & Library of Congress. (2005). The condition of the banking industry.

Washington, D.C.: Congressional Information Service, Library of Congress.

Green, D. S., Schuelke, M., Banking Research Fund., Association of Reserve City Bankers., &

Stanford Research Institute. (1975). The trust activities of the banking industry. S.l: s.n.

Heffernan, S. A. (2005). Modern banking. Chichester, West Sussex, England: John Wiley &

Sons.

Mullineux, A. W., & Murinde, V. (2003). Handbook of international banking. Cheltenham, UK:

Edward Elgar

Thomas, L. B. (1997). Money, banking, and financial markets. New York: McGraw-Hill

Companies.

VanHoose, D. D. (2010). The industrial organization of banking: Bank behavior, market

structure, and regulation. Berlin: Springer.

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