<p align="justify">China Minsheng Banking Corporation Limited or CMBC was established in Beijing in January, 1996. It is the first bank of China which is national and joint-stock commercial bank founded and initiated by non-government enterprises. ; It is known to be modern financial services provider operating in the strict environment and following all Bank and Company’s law of PRC. The bank has seen the rapid growth in its operations along with the economy flourishment in last 23 years. The bank has grown itself with the consumer and other stakeholder’s support. It takes innovation seriously, and with its continuous efforts, it grows itself to commercial bank. It has registered capital worth of RMB 1.38 billion, more than 58,000 staff in 2800 business units. The bank is ranked on 30th among top 1000 banks of the world (CMBC, 2019). </p>
<p align="justify">As the financial industry is getting competitive day by day, it is necessary for CMBC to analyze its market position. Identifying and determining the competition level in the market, and the competitors’ positions, helps the company in restructuring its strategies. Porter’s five forces model helps the company in identifying the strategic position of the Bank along with opportunities and threats. Here is the detailed Porter five forces analysis of China Minsheng Banking; 
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<h2 align="justify">Bargaining Power of Buyers</h2>
<p align="justify">The bargaining power of buyers has direct impact on the prices set by the companies for any product or services. If bargaining power of consumers is strong, it means banks have a pressure to offer high quality in low prices. Consumers will be able to switch on substitute products, or towards competitors. It is important for the China Minsheng Bank to make strong consumer base and provide discounts on financial services for retaining consumers. However, consumers in the financial industry do not have strong bargaining power because of limited alternatives. In addition to this, the switching cost for consumers are high in China Banking industry. Thus, reducing the bargaining power of consumers for China Minsheng Bank (Warren, 2018). 
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<h2 align="justify">Bargaining Power of Suppliers</h2>
<p align="justify">Majorly, the banking industry deals in services and focuses on the wealth safety. Banks need suppliers for providing tangible items like furniture, stationary, cheque books etc. The impact of these suppliers on bank is low, as multiple of suppliers available in the industry. However, it is necessary for China Minsheng Bank to strengthen its position with suppliers to decrease dependency and price sensitivity. The China Minsheng Bank needs to make its supply chain efficient enough from all the regions of its operations. The bank can also reduce the bargaining power of the suppliers through product differentiation and diversification (Henry, 2018).
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<h2 align="justify">Threats of New Entrants</h2>
<p align="justify">The major threat of the new entrants to banks is increase in competition level. The low barriers of entry and exit for banks affects the profitability level in both long and short run. Hence, it becomes necessary for banks to protect themselves from competition and try to create more barriers for new entrants. However, it is quite obvious that high capital is required for the firms to operate its function in financial industry. Banks have to be efficient in its service portfolio and provide high quality services, which is difficult for new entrants initially. In this case, China Minsheng Bank is facing low threats from the new entrants, successfully expanding its business in China (Resa, 2016). 
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<h2 align="justify">Threats from the Substitute Products</h2>
<p align="justify">The easy availability of the substitute services in Banking industry increase the competition, and to some extent, decreases the profitability. High threats of substitutes show the low switching cost and more choices. However, China Minsheng Bank is one of the biggest commercial bank and provide major services to its consumers. Hence, it is difficult for the consumers to find such quality services in reasonable prices in other bank. Moreover, in the financial industry, switching cost is high which reduces this threat for CMBC (Warren, 2018). ; 
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<h2 align="justify">Rivalry of Existing Players</h2>
<p align="justify">China Minsheng Bank do face a high competition from both local and international banks operating in China, like Bank of China, Citic Bank, UBS Bank, etc. It is necessary for the bank to maintain its brand image and attract more consumers. The financial industry in China is highly competitive, and CMBC needs to invest more in R&;D and innovation to compete with other banks (Henry, 2018).
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<h2 align="justify">References</h2>
<p align="left">CMBC, 2019. Introduction to CMBC. [Online], Available at: <a href="http://en.cmbc.com.cn/CMBCToday/AboutCMBC/IntroductiontoCMBC/index.htm">http://en.cmbc.com.cn/CMBCToday/AboutCMBC/IntroductiontoCMBC/index.htm</a>, [Accessed on: 23rd November, 2019]. <br />
Henry, Z. 2018. China Minsheng Bank Porter Five Forces Analysis. [Online], Available at: <a href="https://www.case48.com/porter-analysis/13729-China-Minsheng-Bank">https://www.case48.com/porter-analysis/13729-China-Minsheng-Bank</a>, [Accessed on: 23rd November, 2019].<br />
Resa, W. 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: 23rd November, 2019]. <br />
Warren, S. 2018. China Minsheng Bank 5C Marketing Analysis. [Online], Available at: <a href="https://www.essay48.com/13729-China-Minsheng-Bank-Five-Cs-Of-Marketing">https://www.essay48.com/13729-China-Minsheng-Bank-Five-Cs-Of-Marketing</a>, [Accessed on: 23rd November, 2019].</p>