Strategy of JPMorgan Chase & Co - Research Paper Example

JPMorgan Chase & Co. Michael Porter 5 Forces analysis JPMorgan Chase & Co is a company which has established itself all over the world providing banking services in the private sector. It has proved to be a company with power which is providing financial services to a greater part of the population residing in United States. Porter Five forces can clearly help to analyze the company as to what pressure the company is facing and how it can change its strategy. Ease of Entry: In the financial industry it is clearly seen that many companies exist but here again JPMorgan Chase is dominating only because of the programs that it provides.

It has a special program for its employees through which they can benefit. Exclusive health care plans and retirements plans are examples of such programs which are being implemented by JPMorgan Chase. These programs are the ones which are helping JPMorgan Chase to attract employees in their bank and lower the chances of competitiveness in the industry. Regardless of the ease of entry for competitors and new businesses in the industry, JP Morgan has competitive advantage over them due to its strategies and reward systems.

Competitive Rivalry :- It is seen that the industry in which JPMorgan Chase exists is a market in which many of the organizations exist together. This is a reason because of which JP Morgan Chase has to face immense competition. But in order to tackle this rivalry it is seen that JPMorgan is continuously implementing new strategies so that the rivals do not get a chance to affect their position in the market. These innovative techniques are unique in the industry because of which the customers are being attracted towards it.

A new innovative feature launched by the company is related to mobile deposition through which people who own I-phone can directly deposit funds into their account through their mobile phones. They also have loan procedures through which they are helping many small businesses in the market and this so far has proved to be quite successful. Thus these new strategies are helping them to maintain their rivalry in the market. Buyer Power :- JPMorgan Chase is providing financial services to the customers through its successful strategies.

The strategies followed by JPMorgan have been quite successful in attracting the customers towards it but the buyer power still remains with the customers. The customers are final ones to decide as to if they would select the services of JPMorgan or not. However as seen by the statistics of the financial services in US, it can be clearly seen that JP Morgan is a leading financial company and thus buyer power of the company is very strong. Supplier Power:- JPMorgan Chase is highly reliant on its supplier power as it is a leading company in its industry.

As it is providing the right loans with the least mark up in the market it is able to grasp a market share of businesses that need loans. They have helped small businesses to apply for loans which are helping them to become a strong supplier of loans in the market. Thus it can be said that the company has a strong supplier power even though it has strong competitors. Available Substitutes: The available substitutes for JP Morgan Chase do exist in the market which can prove to be lethal for the market of the financial institution.

The substitutes for JP Morgan are other banks which would be renewing their strategies every now and then to compete with it. Other than banks asset management companies and mutual fund organizations can also prove to be a substitute for banks. These investment agencies can be dangerous for JPMorgan Chase in the long run. JP Morgan Chase & Co is a company which has proved to be very successful in the recent years. The Porter Five Forces clearly show that the company has many rivals but despite this the company is able to grasp a leading position in the industry.

The strategies implemented by the company are quite successful and because of this they have maintained a balance between the buyer and supplied power. In order to snatch the position of Jp Morgan Chase & Co a company would have to develop a strong balance between these forces as currently the company is maintaining such a balance. References Top of Form JP Morgan Chase (Firm). (2002). JP Morgan Chase. WetFeet insider guide. San Francisco, CA: WetFeet, Inc. Top of Form Datamonitor (Firm). (2000). JP Morgan Chase & Co.

New York, NY: Datamonitor. Husted, Bryan W, and David B. Allen. Corporate Social Strategy: Stakeholder Engagement and Competitive Advantage. Leiden: Cambridge University Press, 2010. Internet resource. Bottom of Form Bottom of Form