$3.$ Use the table $($matrix$)$ below to assess the profitability and attractiveness of the local financial$/$banking sector.

a$.$ Replace the items in the third column $($Description$)$ with the relevant realistic information connected to each force.

b$.$ In column four $($overall Impact$)$ indicate whether the overall impact of each force on the industry is low, medium, or high.

c$.$ Based on your analysis above, indicate your position on the overall competitiveness, attractiveness and profitability of the local$/$financial sector.

Porter's Five Forces Analysis

Factors

Description Overall Impact

$1.$ Threat of New Entrants

Market Entry Barriers Evaluate barriers to entry such as high initial investment, economies of scale, brand loyalty, regulations, and access to distribution channels. Assess how easy or difficult it is for new competitors to enter the industry. e$.$g$.$ High

$2.$ Bargaining Power of Buyers

Buyer Concentration Identify the concentration of buyers and their influence on prices. Analyze factors such as volume of purchases, switching costs, price sensitivity$,$ and the availability of alternatives. Assess how much control buyers have over pricing and terms.

$3.$ Bargaining Power of Suppliers

Supplier Power Assess supplier concentration, availability of substitutes, uniqueness of products$/$services$,$ and switching costs.

Determine the influence suppliers have on pricing, quality, and delivery schedules.

$4.$ Threat of Substitutes

Substitute Availability Identify alternative products$/$services that could potentially replace those offered by the industry. Evaluate factors such as price$-$performance trade$-$offs, switching costs, and the ease of substitution.

$5.$ Competitive Rivalry

Industry Competitiveness Analyze the intensity of competition within the industry. Consider factors such as the number of competitors, industry growth rate, differentiation, and exit barriers.

Evaluate the competitive strategies employed by existing players.