<p align="justify">Banco do Brasil or Bank of Brazil is the leading bank in Brazil. It is the biggest bank in terms of asset in Latin America and Brazil. the company is headquartered in Brasilia. It is the oldest bank in Brazil as established before the Central bank of country. The bank is the oldest in the world in terms of operations. The bank is operated by government, but stocks are traded in stock exchange. The management of the bank follows international standard practices. The bank holds a strong position in the retail banking sector. Bank of Brazil is one out of four most profitable banks in Brazil other three are; Bradesco, Santander Brasil, and Itau Unibanco (BB, 2019).<br />
As being an oldest bank in operations, it has face immense pressure from rivals. But it believes in continuous innovation and make its place in competitive industry. The Porter five forces helps the bank in determining the strategic position in the industry. It helps in determining the competition level in the industry. Here is the detailed Porter five forces analysis of Banco de Brasil;</p>
<h2 align="justify">Bargaining Power of Buyers</h2>
<p align="justify">Buyers or consumers are very important for the banks, as they are the main suppliers of funds. Hence, the bargaining power of the consumers are moderate to high. However, corporate consumers have much say in banks, as compare to individual consumers. This makes the banco de Brasil, to carefully analyse its pricing strategies. The bank is operating in the Brazil since ages and gained customer trust. It has loyal consumer base, who do not prefer to switch to other banks. Thus, Banco de Brasil, is having good brand image in the market. However, bank has customers from across the world. Thich means that it has to offer the prices by considering international banking industry. Hence, fluctuating the bargaining power of consumers (Google site, 2019; BB, 2019).</p>
<h2 align="justify">Bargaining Power of Suppliers</h2>
<p align="justify">The bargaining power of the suppliers in case of Banco de Brasil is moderate, as Consumers are the main suppliers. The cash deposits or withdraw by them is consider as major funds. However, the corporate consumers have little more power, as they deal in huge sums. Moreover, there are other financial institutions who act as a supplier. Regardless of this, banco de brasil is the oldest bank in Brazil, and has maintained its image (BB, 2019). There are suppliers who want to work with the bank as it is one of the profitable banks. Both suppliers and bank work on terms which benefits both parties (CFI, 2019).</p>
<h2 align="justify">Threats of New Entrants</h2>
<p align="justify">The bank is working in Brazil more than decades. It was one of the very first banks who build the industry in Brazil. it has seen many new entrants to enter and exit in banking industry. But it manages to grow continuously and build its strong image. Thus, new firms’ entry is not a threat for the bank. However, with the growth in the industry, the bank changes its strategy, and believes in internationalization. Despite of this, it is difficult for the new entrants to compete such big giants in the industry. the strict rules, and policies from the government, plays an exit barrier for new entrants (BB Annual report, 2015).</p>
<h2 align="justify">Threats from the Substitute Products</h2>
<p align="justify">For banks, there are no such threats of substitute products, mainly in deposits or withdraw areas. But there are many non-financial players who provide services like insurance or mortgages etc can be a threat for the bank. It is necessary for Banco de brasil to look forward for expansion. The bank has taken majors towards industrialization and serving to many consumers outside brazil. it is following the client approach to attract consumers (Munshi, 2014).</p>
<h2 align="justify">Rivalry of Existing Players</h2>
<p align="justify">There four big banks in Brazil mentioned earlier. Bank of Brazil is one of them and the oldest one. This means the industry is having tough competition between these four. However, there are other non-financial service providers who are raising the competition level in the industry. It is necessary for the banks to increase the entry barriers. Or takeover small banks to avoid the competition in the industry (Google site, 2019).</p>
<h2 align="justify">References</h2>
<p>BB, 2019. About us. [Online], Available at: <a href="https://www.bb.com.br/pbb/pagina-inicial/sobre-nos#/">https://www.bb.com.br/pbb/pagina-inicial/sobre-nos#/</a>, [Accessed on: 30th November, 2019].<br />
BB, Annual report, 2015. Strategy. [Online], Available at: <a href="https://www45.bb.com.br/docs/ri/ra2015/en/06.htm">https://www45.bb.com.br/docs/ri/ra2015/en/06.htm</a>, [Accessed on: 30th November, 2019].<br />
CFI, 2019. Bargaining power of suppliers. [Online], Available at: <a href="https://corporatefinanceinstitute.com/resources/knowledge/strategy/bargaining-power-of-suppliers/">https://corporatefinanceinstitute.com/resources/knowledge/strategy/bargaining-power-of-suppliers/</a>, [Accessed on: 30th November, 2019].<br />
Google site, 2019. Porter’s five forces and banking industry. [Online], Available at: <a href="https://sites.google.com/site/bankingindustryandtheinternet/home/5-forces">https://sites.google.com/site/bankingindustryandtheinternet/home/5-forces</a>, [Accessed on: 30th November, 2019].<br />
Munshi, A. 2014. Bonco de Brasil- presentation. [Online], Available at: <a href="https://www.slideshare.net/avishek1585/bonco-de-brasil-presentation-42272770">https://www.slideshare.net/avishek1585/bonco-de-brasil-presentation-42272770</a>, [Accessed on: 30th November, 2019].</p>