PESTEL and Porter Five Forces Analysis for the Metro Bank - Essay Example

Comments (0) Cite this document
Political forces in the United Kingdom tend to favor the banking industry in the country because of the positive economic impact it has on the country’s economy, but at the same time, this force impose strict regulations on banks (Chrystal and Mizen, 2006). …
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER92.8% of users find it useful
PESTEL and Porter Five Forces Analysis for the Metro Bank
Read TextPreview

Extract of sample "PESTEL and Porter Five Forces Analysis for the Metro Bank"

Download file to see previous pages PESTEL and Porter Five Forces Analysis for the Metro Bank

The topic of the present essay is Metro Bank PLC - a retail bank operating in the United Kingdom. It outlines the basic forces which are favorable to the banking industry in general and to Metro Bank specifically. Among such Legal, Technological, Socio-cultural, Economic and Political forces are discussed. The second part of the paper presents the PESTEL analysis of the bank in question. The threat of new entrants, power of customers, competition in the industry, power of suppliers and threat of substitutes are analyzed.

The improved economic performance of the UK’s economy after the 2008 to 2010 economic recession has given businesses including banks a new lease of the life as the economic situation are favorable meaning that there is high likelihood of generating substantial amounts of profits. Yet, it must be understood that this recovery is limited and might take over a decade in order to come to a complete level of fruition. By much the same token, the nascent recovery itself could be called into question by even a simple market fluctuation in the very near future.
Socio-cultural force

According to Chrystal and Mizen (2006), UK is a host to some of the oldest and world-renowned banks, which means that the culture of banking pre-exists amongst the British people and therefore, Metro Bank is likely to perform well since this force favors its business.
As has previously been specified, the level and extent to which trust is exhibited in the system has a profound level of sociocultural importance. Due to the impact of the lost trust associated with the bailouts that took place several years ago, a significantly reduced level of consumer confidence exist with regards to the banking industry and any further action that might seek to revive this lost trust can severely impair the manner through which such a service would be offered. Technological forces The UK as a country is largely driven by technology and the banking industry has greatly embraced information technology meaning that for Metro Bank to compete effectively it has to integrate IT within its business processes (Chrystal and Mizen, 2006). Technological forces that could be evidenced have to do with the fact of the rapid technological change that the sweeping each and every industry in the market. In such a way, the technological threat could be with respect to an entirely new platform or paradigm shift with regards to the banking industry and the inability of the entity in question to rapidly integrate with this paradigm shift and provide services to the consumer base accordingly. However, by the same token, if the service provider/bank is able to integrate with a new level of technology in an efficient manner prior to the competition, this could provide a noted benefit and exponentially increase the level of service provision that it could accomplish. Legal forces After the 2008 to 2010, Chrystal and Mizen (2006) stated that legal regulations in the UK’s banking industry have increased drastically but since Metro Bank was issued with a license it means that it was able to abide by the laid down legal requirements. Of all of the information that is thus far been engaged, the legal threats, strengths, weaknesses, and opportunities that exist for a given banking entity are perhaps the most important. Due to the fact that a simple law for an entire combination of laws in the form of parliamentary legislation could adversely impact the way in which profitability, this potential for change is the most impactful of all of the others which have been discussed. Analysis of ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
(“PESTEL and Porter Five Forces Analysis for the Metro Bank Essay”, n.d.)
Retrieved de
(PESTEL and Porter Five Forces Analysis for the Metro Bank Essay)
“PESTEL and Porter Five Forces Analysis for the Metro Bank Essay”, n.d.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document

CHECK THESE SAMPLES OF PESTEL and Porter Five Forces Analysis for the Metro Bank

PESTEL analysis for Bank Barclays

...?PESTEL Analysis For Bank Barclays Table of Contents Introduction 3 History of the Barclays Bank 3 PESTEL Analysis of the Banking Industry 4 Political Analysis 4 Economic Analysis 5 Social Analysis 5 Technological Analysis 5 Environmental Analysis 6 Legal Effects 6 Environmental Factors Affecting the Strategy 6 Affects Of the Global Credit Crunch on Barclays Bank 7 Conclusion 7 References 8 Introduction Barclays Bank is known to be among the leading financial service providers and deals in retail and also in wealth management services, credit cards, investment banking, investment management and commercial banking. The bank is spread across the world and commands strong existence in Europe, Africa, the USA and Asia. The company has... and...
4 Pages(1000 words)Essay

Costco's Five Forces Analysis

...possesses widespread worldwide buying power and it endeavors to satisfy any specific item related requirements beyond its everyday assortment (, n.d.). The innovative concept regarding warehouse retail has enabled the Costco Wholesale Corporation (CWC) to make vertical integration and provide the products from manufacturers towards consumers (George et. al., 2004, pp. 8). In the study, the five forces analysis of the company has been evaluated in order to determine its competitive advantage within the market. 2.0 Porter’s Five Forces AnalysisPorter Five...
4 Pages(1000 words)Essay

Michael Porter 6 Forces

...of their lives. Though the industry is wide and has vast and offers vast products and services, the overall outcome is the same because they impact the daily lives of the customer. For instance, while the internet and computer makes lives easier, the phone simplifies communications and electronics like Televisions informs and entertains. However, the industry faces its own challenges as portrayed by Michael porter’s six forces analysis, which means that prior to the effects incurred by companies, the consumer is affected both positively and negatively. Though porter warns that these forces might change overtime, the vast fields and corporate in the...
4 Pages(1000 words)Research Paper

The Five Forces by Michael Porter

...context in which the firm operates. The discussion will be initially covered by the description of the buyer's power over the industry followed by the depiction of the power of suppliers over the companies (David, 1999). Another attribute of the industry that will be taken into account is the intensity of competition among companies as well as the level of potency of new companies who have recently entered the market of retail. And finally, the ability of substitute product to affect the business disposition of a company will also be taken into consideration (David, 2001). Buyer's Power Based on Porter's five forces analysis, companies in the industry sell to a few...
10 Pages(2500 words)Essay

Amazon-Pestel -swot -porter 5

... has faired well in a fiercely competitive environment. Porter’s Five Forces model can be used to analyse this environment. The threat of substitutes is a serious factor that has to contend with. However, has not allowed its business to be daunted by it. The company has managed to stay above its competitors by offering them the ability to look inside some of the books they may want to purchase. Additionally, no shipping is charged on orders above a certain value once the sale is within a certain geographic area. Although it also has an e-reader, it has a disadvantage in that Barnes and Nobel is able to provide in-store support for its E-reader – the Nook. Barriers to entry in the industries... Strengths,...
4 Pages(1000 words)Essay

5 porter forces

...Topic: 5 Porter Forces Affiliation: The five porter forces provide a large industrial analysis and a framework through which business strategic development is formed and evaluated. The forces ensure and maintain a balance of power within a business context as well as provide measures for competition among corporations, markets and industries. The building porter forces under Michels Patisserie, a large cake business influence the potential gains in the company and they include: Rivalry Rivals in a business context can exploit markets and even destroy it depending on the capacity to...
2 Pages(500 words)Essay

The Five Porter Forces

...The Five Porter Forces The Porter five forces provide an analysis on which a company should base the production techniques and shows a balance of forces that determine the profitability of an industry. For a firm to ensure maximum profits there is need to use the model to understand the industry context so as to develop an edge over the immediate rivals. The underlying five forces that were given by Porter include the supplier power, buyer power, threat of substitutes, rivalry and entry barriers or threats of new entrants to a market (Greenwald & Kahn...
2 Pages(500 words)Essay

Porter forces five

...Porter’s Five Forces al Affiliation Porter’s Five Forces Several companies have several strategies in ensuring that they remain financially relevant in the dynamic business world. It is a fact that in business, there are several challenges that may hinder the success of any business venture. These may range from the strength of the competitors, quality of the products as well as the nature of relationship maintained by the customers (Porter, 2011). However, business ventures always operate with the main motive of making profits. Therefore, profit maximization is always the key issue that drives all the business...
1 Pages(250 words)Essay

Michael Porters Five Forces Analysis

...Porter Five Forces of Competitive Position Analysis Michael E. Porter developed the five forces of competitive position in the year 1979. The framework is used for evaluating and assessing the competitive strength and position of a business firm. The theory is based on the concept that the forces determine the attractiveness and competitive intensity of a market. The forces help in identification of the power of a business situation. The analysis is used to understand the strength of the firm’s current competitive position and the position’s strength (Boone and David,...
4 Pages(1000 words)Coursework

Boeing Porter's Five Forces Industry analysis

...industry is characterized by low profits, and issues of bankruptcies and losses (Hecker, 2001). In fact scholar explains that it is always difficult for an airline company to make some profits, because of this high level of competition (Fojt, 2006). The five biggest companies operating in United States are, American Airlines, Delta, South West, US Airways, and United Airlines. These companies are providing very high competition to companies such as Boeing and Air bus (Peoples, 2012). However, because of the similar strategies that they use, there is no major market leader in this industry. All these airline companies have to compete for a share in their market under consideration. Because of high competition in this...
2 Pages(500 words)Assignment
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Let us find you another Essay on topic PESTEL and Porter Five Forces Analysis for the Metro Bank for FREE!

Contact Us