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Union Bank of Switzerland Porter’s Five Forces

<p align&equals;"justify">UBS Group is the Swiss multinational financial services and investment bank&period; The company is founded in Switzerland&period; It is headquartered in Basel and Zurich&period; The company has maintained its presences in the major financial centres as biggest Swiss banking across the globe&period; The client of UBS prefers the bank for its client confidentiality element and bank secrecy culture&period; The large positions of the banks in EMEA&comma; Asia Pacific and America markets has made it a globally systematic financial institution&period; UBS is famous as one of the great service providers in the wealth management area&period; The company has more than 60&comma;000 talented employees &lpar;UBS&comma; 2019&rpar;&period;<&sol;p>&NewLine;<p align&equals;"justify">UBS is operating at a global level and compete with numerous international competitors across the world&period; It is necessary for the bank to have detailed industrial analysis in order to maintain the market image&period; Porter five forces model helps the company in identifying the strategic position of the company&period; it identifies the external factors in order to achieve more economies of scale&period; Here is the detailed Porter five forces analysis of UBS&semi;<&sol;p>&NewLine;<h2 align&equals;"justify">Bargaining Power of Buyers<&sol;h2>&NewLine;<p align&equals;"justify">Investment and financial service providers are only operating for providing the services to consumers&period; if consumers will not be happy with the company&comma; eventually the company will collapse&period; Bargaining power of the consumes is an important factor in analysing the company position&period; The bargaining power of consumers in UBS case is moderate&period; UBS is highly diversified in its operations and has greater market to serve&period; The company has huge consumer base and maintains its market share&period; The consumers of the UBS have moderate bargaining power as the services provided by the company is little differentiated&period; Consumers of UBS do not prefer to switch to other competitors &lpar;Consltingwithresults&comma; 2011&rpar;&period;<&sol;p>&NewLine;<h2 align&equals;"justify">Bargaining Power of Suppliers<&sol;h2>&NewLine;<p align&equals;"justify">Bargaining power of suppliers is an important factor as it greatly effects the company’s profitability&period; The UBS suppliers have low bargaining power&period; As the UBS is a big name in the world financial market&comma; the suppliers really want to be associated with a big name&period; This helps he suppliers to reach to a huge consumer bae of UBS&period; Suppliers cannot negotiate to much extent because they are bank on the long-run returns&period; This will emanate them from these associations&period; However&comma; UBS maintains very good relationship with its suppliers&period; And maintains efficient supply chain to provide best services to consumers &lpar;Rodrigo&comma; 2012&rpar;&period;<&sol;p>&NewLine;<h2 align&equals;"justify">Threats of New Entrants<&sol;h2>&NewLine;<p align&equals;"justify">Threats from the new entrants in the investment and financial industry is low to moderate&period; There are numerous reasons for this&period; Starting operations in the new industry is not easy as it requires huge capitalization costs&period; The new entrants have to develop the strong brand name&comma; loyal customer base&comma; differentiated products and services etc&period; New entrants have to adopt marketing and promotional techniques&comma; distribution channels&comma; supply networks etc&period; to make itself prominent among competitors&period; It is difficult for the new entrants to achieve economies of scale&period; However&comma; UBS is working on a global financial market&comma; it is working hard towards growth and achieving market share &lpar;Henry&comma; 2018&rpar;&period;<&sol;p>&NewLine;<h2 align&equals;"justify">Threats from the Substitute Products<&sol;h2>&NewLine;<p align&equals;"justify">Threats from the substitute products for UBS is very ow&period; There is no such substitute available for the financial services providers&period; However&comma; UBS works on high margin regime&comma; the only threat it can have is losing the customers with low margin providers&period; Despite of this&comma; UBS has maintained a huge base of loyal customers&comma; who trust the company services blindly&period; This benefits the company in making its strong brand image in the global financial market &lpar;UBS&comma; 2019&rpar;&period;<&sol;p>&NewLine;<h2 align&equals;"justify">Rivalry of Existing Players<&sol;h2>&NewLine;<p align&equals;"justify">The competition level in the financial and investment sector is very intense across the globe&period; UBS is facing competition from local firms in Switzerland&comma; international firms in the country&comma; and all the global firms&period; It is also facing competition from non-financial service providers&comma; as they provide services through internet like Paypal&period; In addition to this&comma; the competition level has also increased because of the consolidation of financial industry&period; This has led to the development of diversified and bigger competitors&period; Regardless of this&comma; UBS has its dedicated research and development team along with he resources&period; This helps the company in enabling the group more innovatively &lpar;Rodrigo&comma; 2012&rpar;&period;<&sol;p>&NewLine;<h2 align&equals;"justify">References<&sol;h2>&NewLine;<p style&equals;"text-align&colon; left&semi;" align&equals;"left">Consulting with results&comma; 2011&period; Financial Services meet Porter’s Five Forces&period; &lbrack;Online&rsqb;&comma; Available at&colon; <a href&equals;"https&colon;&sol;&sol;consultingwithresults&period;wordpress&period;com&sol;2011&sol;08&sol;03&sol;financial-services-meet-porters-five-forces&sol;">https&colon;&sol;&sol;consultingwithresults&period;wordpress&period;com&sol;2011&sol;08&sol;03&sol;financial-services-meet-porters-five-forces&sol;<&sol;a>&comma; &lbrack;Accessed on&colon; 25th December&comma; 2019&rsqb;&period;<br &sol;>&NewLine;Henry&comma; Z&period; 2018&period; UBS AG Porter Five Forces Analysis&period; &lbrack;Online&rsqb;&comma; Available at&colon; <a href&equals;"https&colon;&sol;&sol;www&period;case48&period;com&sol;porter-analysis&sol;15985-UBS-AG">https&colon;&sol;&sol;www&period;case48&period;com&sol;porter-analysis&sol;15985-UBS-AG<&sol;a>&comma; &lbrack;Accessed on&colon; 25th December&comma; 2019&rsqb;&period;<br &sol;>&NewLine;Rodrigo&comma; 2012&period; SWOT Analysis and Porter’s 5 Forces analyses for Union Bank of Switzerland &lpar;UBS&rpar;&period; &lbrack;Online&rsqb;&comma; Available at&colon; <a href&equals;"https&colon;&sol;&sol;writepass&period;com&sol;journal&sol;2012&sol;09&sol;swot-analysis-and-porters-5-forces-analyses-for-union-bank-of-switzerland-ubs&sol;">https&colon;&sol;&sol;writepass&period;com&sol;journal&sol;2012&sol;09&sol;swot-analysis-and-porters-5-forces-analyses-for-union-bank-of-switzerland-ubs&sol;<&sol;a>&comma; &lbrack;Accessed on&colon; 25th December&comma; 2019&rsqb;&period;<br &sol;>&NewLine;UBS&comma; 2019&period; Discover who we are&period; &lbrack;Online&rsqb;&comma; Available at&colon; <a href&equals;"https&colon;&sol;&sol;www&period;ubs&period;com&sol;global&sol;en&sol;our-firm&period;html">https&colon;&sol;&sol;www&period;ubs&period;com&sol;global&sol;en&sol;our-firm&period;html<&sol;a>&comma; &lbrack;Accessed on&colon; 25th December&comma; 2019&rsqb;&period;<&sol;p>&NewLine;

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