<p align="justify">Five forces model of Porter is the strategic management tool which helps in determining the competition level in the industry. Every force mentioned in model strengthening the strategic planner in understanding the profitability potential of the company in the industry. However, the strengths of the forces vary according to the industry, as industries are different in terms of profitability and the attractiveness. The five forces of Porters are; Bargaining power of buyers and suppliers, threats of the new entrants and substitute products, and rivalry from the existing rivals (CGMA, 2013). </p>
<p align="justify">The five forces model of Porter’s can provide assistance to Bank of China in analyzing the banking industry of China in terms of profitability and competition level. Bank of China was established in 1912, and served as the central bank, international trade, and exchange bank in the country. It fulfils its commitment in order to serve developing and public financial service sectors of China. It rose to the leading position in China in the financial industry and able to develop the good standing in international community too (Bank of China, 2019). Here is the Porter’s five forces analysis of Bank of China; ; 
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<h2 align="justify">Bargaining Power of Buyers</h2>
<p align="justify">The buyers’ income in the industry is low, which clearly reflect on low purchasing power, and this makes the customers more sensitive towards prices. Buyers need good quality products or services in low prices, which means the bargain power of customers are high. Some customers make frequent purchase by only focusing on the quality, and do not often bargain, as there are no such significant threats to buyers for integrating backwards, thus lowering their bargaining power. Bank of China continuously focuses on the differentiation and innovation in order to lower down the prices and provide quality services to attract consumers. It builds its customer base to weaken the buyer’s bargaining power (Bank of China, 2019). 
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<h2 align="justify">Bargaining Power of Suppliers</h2>
<p align="justify">There are numerous suppliers in the financial industry as compared to buyers, which shows the less supplier’s power over the prices. The products of the suppliers are often standardised and has low switching cost for the bank. Bank of China has set its own prices for the raw materials, if the suppliers’ bargains for high prices, Bank can easily switch to other suppliers. it has multiple suppliers because of the efficient supply chain. ; Bank of China also maintains close relationship with the suppliers to gain more benefits (Murphy, 2018). 
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<h2 align="justify">Threats of New Entrants</h2>
<p align="justify">It is very difficult for the bank to achieve the economies of in banking industry of China. It is easier for those who are producing more in order to gain cost advantage. However, this makes the production expensive for the new entrants, thus a big barrier for them in entering the new market. Moreover, product differentiation needs to be very strong in the industry, as the firms should sell differentiated product instead of standardized products. This needs advertising and different marketing strategies, which are costly for the new entrants. Bank of China is a big name in the banking and financial industry, thus taking the advantage of gaining economies of scale to fight off the new entrants. It also focuses on the innovation to make its products and services different from new entrants and attract the consumers (Resa, 2016). 
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<h2 align="justify">Threats of Substitute Products</h2>
<p align="justify">There are not many substitutes available in the industry where Bank of China-BOC operates. The few substitutes are available, are usually produced by the firms earning low profits. This shows no limitation on firms earning profits in the industry, and this makes the threats of substitute products as a weaker force. However, few substitutes are also available which are of high quality but are expensive. Bank of China has low prices as compared to those expensive products, which means customers are less likely to switch to other products. To retain the consumers, Bank of China produces high quality products and services in low prices. It greatly focuses on the differentiating strategy, and provide unique services to attract customers, and understand their needs (Murphy, 2018). 
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<h2 align="justify">Rivalry of Existing Players</h2>
<p align="justify">The financial and banking industry is growing rapidly, and there are many new entrants along with existing giants like China Merchant Bank, ICBC, CBC, etc. in the industry. It is necessary for Bank of China to attract new customers, instead of rivals’ customers. It should conduct the market research consecutively in order to analyze the supply-demand conditions to avoid overproduction. Rivalry among the industry is weak because of the existence of big giants in the market. As any rival make any move, it is noticeable and other banks can also take action. Bank of China needs to be attentive and strategically sound in order to maintain its leading position (Resa, 2016). 
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<h2 align="left">References</h2>
<p align="left">Bank of China, 2019. Bank Overview. [Online], Available at: <a href="http://www.boc.cn/en/aboutboc/ab1/200809/t20080901_1601737.html">http://www.boc.cn/en/aboutboc/ab1/200809/t20080901_1601737.html</a>, [Accessed on: 7th April, 2019]. <br />
Bank of China, 2019. Main business of bank of China. [Online], Available at: <a href="http://www.boc.cn/en/aboutboc/ab1/200808/t20080814_1601739.html">http://www.boc.cn/en/aboutboc/ab1/200808/t20080814_1601739.html</a>, [Accessed on: 7th April, 2019]. <br />
CGMA, 2013. Porter’s Five Forces of Competitive Position Analysis. [Online], Available at: <a href="https://www.cgma.org/resources/tools/essential-tools/porters-five-forces.html">https://www.cgma.org/resources/tools/essential-tools/porters-five-forces.html</a>, [Accessed on: 7th April, 2019].<br />
Murphy, E. 2018. Bank of China Porter Five Forces Analysis. [Online], Available at: <a href="https://www.essay48.com/term-paper/13627-Bank-of-China-Porter-Five-Forces">https://www.essay48.com/term-paper/13627-Bank-of-China-Porter-Five-Forces</a>, [Accessed on: 7th April, 2019].<br />
Resa, J. 2016. THE IMPACT OF PORTER&#8217;S FIVE FORCES MODEL IN RESPONDING TO COMPETITION IN THE BANKING INDUSTRY. [Online], Available at: <a href="https://www.academia.edu/26530960/THE_IMPACT_OF_PORTERS_FIVE_FORCES_MODEL_IN_RESPONDING_TO_COMPETITION_IN_THE_BANKING_INDUSTRY">https://www.academia.edu/26530960/THE_IMPACT_OF_PORTERS_FIVE_FORCES_MODEL_IN_RESPONDING_TO_COMPETITION_IN_THE_BANKING_INDUSTRY</a>, [Accessed on: 7th April, 2019]. </p>