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Banking Industry

C/B/738. Dissertation. Barclays Bank: Market efficiency and Porter's 5 Forces analysis

WORDS:

9000

DATE:

2007

PRICE:

99.99 GBP

This work analyses the competitiveness of the UK's banking industry. The literature review is based on Porter's 5 forces model. It is found that the UK's banking industry is very competitive in certain segments such as current accounts and credit cards, while very uncompetitive in others such as services provided to SMEs. The internet has decreased the barriers of entry into this market, and therefore the banking industry is facing a strong growth of rivals from large non-banks such as supermarkets and retail stores. Although these rivals have brought higher competitive pressures to the industry, they have also allowed banks to provide a wider range of services, which in turn allow them to increase customer loyalty. The second part of work investigates the share price movements of Barclays bank. It is found that the share price does not follow the Random Walk model, but rather is highly dependant on the industry's share price performance. The work concludes that the banking industry overall is competitive.

KEYWORDS: Random walk, porters, five forces, Barclays bank, regression, barriers to entry, subs,