<p align="justify">Wells Fargo is the international financial and banking service provider in America. Because of huge market capitalization, it is the world’s leading bank. The main rivals of the Wells Fargo are Prudential financial and ING group, and JP Morgan and Chase. Wells Fargo is the diversified company, working in different industries, which means supplier’s bargaining power is strong, and the bargaining power of buyers is strong due to high purchasing power. Porter’s five forces reflects on all the external factors which are necessary for the company to compete in the market. The porter’s five forces model is also known as competitive and industry analysis (WellsFargo, 2019). Here is the Porter’s five force analysis of the Wells Fargo.
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<h2 align="justify">Bargaining Power of Buyers</h2>
<p align="justify">Buyers are always demanding and want to buy the product or services in low cost but high quality. This is challenging for the Well Fargo, as the profitability level effects a lot in the long run. The more powerful and smaller the consumer base, the higher will be the bargaining power of buyers in Wells Fargo case. Wells Fargo tackles the situation by building the larger consumer base. This helps the company in reducing the buyer’s bargaining power and provide the opportunities to companies for streamlining the production and sales process (FernFort, 2019). 
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<h2 align="justify">Bargaining Power of Suppliers</h2>
<p align="justify">All most all the companies in Money Centre Banks buy raw materials from different suppliers, thus suppliers are in the dominant position and this decreases the margins of Wels Fargo profitability. Suppliers use negotiating powers for extracting the prices in banking fields. Wells Fargo deals with this situation by developing efficient and effective supply chain along with numerous suppliers. It also experiments the product designs by using different materials due to the increase in prices of raw material (Wiki wealth, 2019).
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<h2 align="justify">Threats of New Entrants</h2>
<p align="justify">Barriers to entry is very high for the bank of Wells Fargo, because of the presence of around 215 new banks annually. But many banks stopped their operation because of tough competition or mergers. However, there is also a barrier to entry because of the mistrust. As the Wells Fargo is the diversified organization, there are higher chances of the new entrants. For instance, new insurance company starts its operations in lower rates and compete with Wells Fargo. However, the need of high capitalization and strict government regulations become the hindrance for the new entrants. Product differentiation is also the factor which plays the major role, and Wells Fargo has the advantage over such factors (Alt, and Puschmann, 2012).
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<h2 align="justify">Threats from the Substitute Products</h2>
<p align="justify">Complementary and substitute products play the vital role in banking industry. The financial services and banking services have the broad range of complements and substitutes. There are various products which maximize the wealth and act as substitute products, for instance, ATM has replaced the standard checking of accounts. For Wells Fargo, there is low threat of substitution because of the strong grip on consumers. It also increased its switching cost, so that consumers could not go to other banks. It is necessary for the Wells Fargo to label the services prices in a way that customers remain attracted and do not care for the substitute products (Fernfort, 2019). 
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<h2 align="justify">Rivalry of Existing Players</h2>
<p align="justify">If the competition in the industry is tough because of the existing rivals, prices needs to be down, and this reduces the overall profitability of the company. Wells Fargo operates in the tough Money Centre industry, and this rivalry takes toll in the long-term profitability level. Wells Fargo tackles this situation by building the sustainable differentiation and better scales to compete better in the market. Efficient strategies are developed, and their implications are monitored regularly. It collaborates with the competitors for increasing the market share and size instead of competing in the small market (Wiki wealth, 2019; Hyun, and Kang, 2015). 
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<h2 align="justify">References</h2>
<p>Alt, R. and Puschmann, T., 2012. The rise of customer-oriented banking-electronic markets are paving the way for change in the financial industry. Electronic Markets, 22(4), pp.203-215.<br />
Fernfort university, 2019. Wells Fargo &; Company Porter Five Forces Analysis. [Online], Available at: <a href="http://fernfortuniversity.com/term-papers/porter5/analysis/1067-wells-fargo---company.php">http://fernfortuniversity.com/term-papers/porter5/analysis/1067-wells-fargo&#8212;company.php</a>, [Accessed on: 4th April, 2019]. <br />
Hyun, A. and Kang, H., 2015. Similarities And Differences Of Industry Leaders&#8217; Competitive Advantages. Leadership &; Organizational Management Journal, 2015(2).<br />
Wells Fargo, 2019. About us. [Online], Available at: <a href="https://www.wellsfargo.com/about/">https://www.wellsfargo.com/about/</a>, [Accessed on: 4th April, 2019].<br />
Wiki wealth, 2019. Wells Fargo Project &#8211; Five Forces Analysis. [Online], Available at: <a href="http://www.wikiwealth.com/five-forces:wells-fargo-project">http://www.wikiwealth.com/five-forces:wells-fargo-project</a>, [Accessed on: 4th April, 2019].</p>