Tokio Marine holding is one of the conglomerates which mainly focuses on holding and insurance industry. Its Headquarter is in Tokio, Japan. This company provides insurance to different identities. It was established in 2002. There are a total of 706 employees doing work in this organization. It is a public listed company and registered in the Tokyo Stock Exchange. Its current stock price is 6,185.00JPY as per 18-12-19. There are different holdings under this company. Some of them are as follows; Tokio Marine & Nichido Fire Insurance Co., Nisshin Fire & Marine Co., E.design Insurance, Tokio Marine Millea SAST, Domestic Life Insurance Business, Tokio Marine & Nichido Life Insurance Co. Tokio Marine HCC, Tokio Marine Technologies, Philadelphia Insurance Companies, Tokio Marine Asia – Regional HQ for Asia Pacific. It mainly focuses on the financial services industry.
Tokio Marine holding Porter’s Five Forces Analysis:
Threats of New Entrants:
In the financial industry different kinds of laws, rules and regulations are one of the barriers in this industry. Because laws in this industry are much complex as compared to others. Large capital is needed and to access the capital in large amounts is one of the barriers that can affect the new entrant. To provide better service in market new entrants need to provide extra value which is only possible through money. Large sunk cost is one of the existing barriers in this industry. Brand identification, product diversification, and brand loyalty is also a barrier in this industry. Therefore, all of these factors shows that threats of new entrants are low in this market.
Threats of Substitute
This industry is highly fragmented because of diversified products for different customers. There are a large number of buyers and different companies are operating to serve them in the market. Consumers can shift from one company to another due to any reason because of similar substitutes available in the market. Therefore, all of these factors shows that threats of substitutes are low in this market.
Bargaining Power of Buyer
As the customer base is big, to which different companies are targeting. There are several products available in the market. There is a low switching cost as the buyer can move from one company without paying anything, this can affect the sales of the companies. Therefore, it shows that the bargaining power of the buyer is high in this market.
Bargaining Power of Supplier
As large capital is needed to start and operate the business. Different substitutes are available in the market. Suppliers are less in number as compared to buyers. The risk factor also plays its role to provide an advantage to suppliers. As they can demand high risk. All of the companies are highly dependent on suppliers. If the company is willing to change the supplier, it can be much costly. Because of new agreements and policies. Therefore, all of these factors show that the bargaining power of the supplier exists in the market.
Competitive Rivalry
Competition is high in the market, as different companies are providing products to the common market. So this can cause a situation where one company may try to tackle other companies to increase the market share. As merger and acquisition is difficult. Every company tries to increase their market share.
References
1 TMH, 2019, about, [online], Available at: https://www.tokiomarinehd.com/en/
2 Bloomberg, 2019, Tokio Marine Holdings Inc., [online], Available at: https://www.bloomberg.com/quote/8766:JP