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<p align="justify">ICICI Bank is a privately owned Indian development finance institution, offering a wide range of products and financial services in retail, corporate, investment, and private banking. The institution was formed in 1994 and had a corporate office in Bandra Kurla, Mumbai. The firm has engaged almost 85000 employees with the business and holds a revenue of 21 billion US dollars, almost having offices in 5000 plus locations and presence in 17 countries (ICICI, 2019). Keeping into consideration the Financial Industry, an overview of the Porter five forces would be of immense value to recognize the strategic position of the firm in the global financial industry.</p>
<h2>Competitive Rivalry in the Market</h2>
<p align="justify">The competitive rivalry in the financial sector in the Indian market is high because the banking sector in India is well-capitalized and governed. The country&#8217;s business and economic structures are much superior and are growing at an annual growth rate of 3.57 percent. As an outcome of this development, in order to provide financial services to consumers, many banks and investors have flooded the business, bringing in intense competition among major companies. As per Statista (2020), ICICI bank is putting efforts to lead the market and give tough competition with a revenue collection of 21 billion in the Indian marketplace. The organization&#8217;s major competitors are the State bank of India, HDFC Bank, and Axis Bank, with a revenue collection of 52, 21, and 11 billion US dollars. The market size of Indian financial institutions is growing rapidly, which includes 12 public sectors, 22 private sectors, 46 international, 56 rural, 1485 urban cooperative, and 96,000 rural cooperative banks (Ibef, 2021). Therefore, making the competition force higher in the market.</p>
<h2>Threat of Substitutes</h2>
<p align="justify">The threat of substitutes is considered to be low as financial institutions continuously have evolved, but their form and structure have been expanding and shifting over the generations. Financial services are the most critical need of companies in a modern environment, and any other commodity cannot convert them. Digitalization of products and services in the current era has adjusted the nature of financial dealing and interaction between the consumers and the industry as a mode of alternative finance (Bilan et al., 2019). Moreover, as the use of modern options and advancement work can be able to distinguish companies in exchange for the services they offer, but it is not a replacement. Hence, the threat of forming substitutes in this sector is low.</p>
<h2 align="justify">The Threat of New Entrants</h2>
<p align="justify">The threat of new entrants in the financial industry, specifically the banking sector, is low because barriers to entry into the banking sector make it very hard for stakeholders to build a business in the market. When entering the market, various factors such as established rivalry by existing companies and the confidence they have in the minds of the customer base are difficult to overcome. Smooth financial sector operations necessitate a large amount of capital for commodity production and meet industrial output and other obstacles such as building communication networks and complying with laws and regulations (Makhaya and Nhundu, 2016). As a result, it raises a lower risk of potential entrants.</p>
<h2 align="justify">Bargaining Power of Buyers</h2>
<p align="justify">Owing to the standardized primary product offerings from various banks, consumers in the banking industry have a lot of negotiating power. The cost of using banking products and services, as well as the features available, are not radically different. Consumers at any time can ask for better services in return and can avail of a range of options available in the industry as the money being used belongs to them. Customers have a low switching rate, which strengthens their bargaining power (Vyas and Raitani, 2014). Such diplomacy and attitudes of the users can impact the negotiation and, therefore, build buyers&#8217; bargaining power in the banking industry.</p>
<h2 align="justify">Bargaining Power of Suppliers</h2>
<p align="justify">The Bargaining power of suppliers is moderate in terms of the offerings of specialized and limited products and services. Moreover, in terms of capital availability financial industry depend on o sources like availability of loans, investments, and other instruments that confirm the supply of money in the industry. Supplier transaction costs and market segmentation factors can affect the position of suppliers in the environment of enterprises when it comes to bargaining. (Indiasty et al., 2014). For that reason, in context to the financial industry, the bargaining power of suppliers can be termed as moderate.</p>
<h2>References</h2>
<p>Bilan, Y., Rubanov, P., Vasylieva, T.A. and Lyeonov, S., 2019. The influence of industry 4.0 on financial services: Determinants of alternative finance development. Polish Journal of Management Studies.<br />
Ibef, 2021. Indian Banking Industry Analysis | IBEF. [online] Ibef.org. Available at: https://www.ibef.org/industry/banking-presentation.<br />
ICICI, 2019. about-us. [online] Icicibank.com. Available at: https://www.icicibank.com/managed-assets/docs/about-us/2020/2019-12-31-ICICI_Bank_Financials_Q3-2020.pdf.<br />
Indiatsy, C.M., Mucheru, S.M., Mandere, E.N., Bichanga, J.M. and Gongera, E.G., 2014. The application of Porter’s five forces model on organization performance: A case of cooperative bank of Kenya Ltd.<br />
Makhaya, T. and Nhundu, N., 2016. Competition, barriers to entry and inclusive growth in retail banking: Capitec case study1. The African Journal of Information and Communication, 2016(17), pp.111-137.<br />
Statista, 2020. India &#8211; Fortune 500 India leading banks by revenue 2019 | Statista. [online] Statista. Available at: https://www.statista.com/statistics/677553/india-fortune-500-leading-banks-india/.<br />
Vyas, V. and Raitani, S., 2014. Drivers of customers’ switching behaviour in the Indian banking industry. International Journal of Bank Marketing</p>
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