ipl-logo

Essay On Competition In Banking Industry

1018 Words5 Pages

Competition is defined as a process of rivalry between firms seeking to win customers’ business over time (Whish, 2005). The aim is to increase market share and get higher profits. Firms compete on prices or quality of the products in concern.

Competition policy is defined as the set of policies which aim to ensure that competition in the marketplace is not restricted. Thus, the aim of the competition policy is the maximization of social welfare by ensuring that markets are competitive and allocative and productive efficiencies as well as dynamic efficiency are achieved. In other words, competition policy aims to create and maintain an efficient market structure (Motta, 2004; Whish, 2005).

Competition in the banking industry is developing at a faster rate than ever before which affects many sectors of the world’s economy This competition is noted for playing a pivotal …show more content…

STATEMENT OF PROBLEM
The problem statement, according to (Wiersma 1995), describes the content for the study and it also identifies the general analysis of issues in the research necessitating the need for the study (Creswell 1994). The research will be expected to answer questions and provide reasons responsible for undertaking the particular research (Pajares 2007). The problem of this study will be to find out the competition in banking to formulate theoretical and practical proposals to encourage a healthy competition in banking and recommend necessary blueprints to help mitigate the negative impact that may arise.

RESEARCH QUESTIONS
1. What are the challenges associated with competition in banking?
2. What the opportunities associated with competition in banking?
3. Is there a link between competition and performance of banks?
4. What are the experiences of some

Show More
Related

  • Phoebe Putney Case

    953 Words  | 4 Pages

    Summary of Facts Federal Trade Commission v. Phoebe Putney Background. In an attempt to increase access to affordable care, the Hospital Authority Law, in Georgia (GA), states that “hospital authorities” can be developed to provide healthcare services in multiple counties. These hospital authorities can acquire, purchase, and lease multiple healthcare facilities. However, all actions of the hospital authority must benefit the community it serves. Phoebe Putney Memorial Hospital is owned by the Hospital Authority of Albany-Dougherty County (Authority).

    Read More

  • Big Businesses During The Gilded Age

    1434 Words  | 6 Pages

    Competition is good for consumers. For example, if a company has to compete with another company, they will be forced to try to create a better and cheaper product than the other. If a company is a trust, and doesn’t have to compete, they will have no reason to keep their prices low, or improve the quality of their merchandise. This is because a consumer that needs a product will be forced to buy it from the monopoly even if they aren’t happy with the value or cost of it because they have no other choice. Big corporation leaders wanted to eliminate competition.

    Read More

  • Compare And Contrast Communism Vs American Economy

    3037 Words  | 13 Pages

    The only competition that they have is they international competition such as trade with other countries; in the US we have a free market with unlimited

    Read More

  • Essay On The Effect Of Temperature On Osmosis

    1159 Words  | 5 Pages

    In reference to a study conducted by Irfan Nadiadi and Sarah Mugharbil (2007), the end results of

    Read More

  • Cooperation Over Competition In Edward Bellamy's Looking Backward

    763 Words  | 4 Pages

    Competition keeps companies striving for the highest quality products for the lowest price because they want to attract customers. However, if people had no choice where to buy their car, it would not matter what a company sold. Additionally, if there was no competition, there would be no way to benchmark your products for quality or technological advancements. Still using the car company example, the car industry would be like it is in Cuba where everyone drives cars from the 70’s, because that is all they

    Read More

  • Collaborative Person-Centred Care Essay

    1225 Words  | 5 Pages

    Jove et al. (2014) conducted a qualitative study

    Read More

  • Argumentative Essay: Private Monopolies In The United States

    1203 Words  | 5 Pages

    Additionally, monopolies regarded as essential and sizeable in power may need public regulation or ownership instead of private (Friedman, 1975). Under Freidman’s definition of “monopolies and similar market imperfections”- the absence of alternatives, this paper finds it empirical to consider the government-supported institutions of Fannie Mae and Freddie Mac as monopolies. In which there was an improper use of government intervention and a lack of proper intervention to tackle the monopoly issue. This will be discussed later in the

    Read More

  • Sysco Porter's Five Forces

    773 Words  | 4 Pages

    Porter’s article has strong analysis and provides persuasive examples to support his argument. He carefully explains the five forces and demonstrates how they affect the competition in business. For example, when discussing about rivalry among existing competitors, Porter briefly mentions about different forms of rivalries and its intensity. After that, he analyzes the situations that lead to different level of intensity in rivalry carefully. Porter illustrates that “ The intensity of rivalry is greatest if: Competitors are numerous or are roughly equal in size and power…Industry growth is slow…

    Read More

  • Barclays Competitive Advantage

    1910 Words  | 8 Pages

    Therefore, the source of competitive advantage for Barclays would be quality customer care as envisaged in their strategy in citizenship and continuous development of new and unique products for the market. The ability to enjoy economies of scale from supplies and large capital structure should also offer Barclays, a hand in increasing competition. Institutional capabilities and endowment Barclays bank has both physical and intangible resources to help it grow to a leading financial institution in its strategic plans. It has both distinctive and threshold capabilities to allow it create a competitive advantage against its rivals (Warner, 2010).

    Read More

  • Competitive Case Analysis Of Wilkerson's Company

    1770 Words  | 8 Pages

    Now, like any other company out there in the corporate world, they all come across a point in business where they face a competitive situation, due to either their product line, pricing, or their financial system. According to our

    Read More

  • Porter's Five Forces In Healthcare

    1087 Words  | 5 Pages

    The model of the Five Competitive Forces, developed by Michael E. Porter, is based on corporate strategy, industry structure and the way they change. Porter has identified five competitive forces that shape every industry and every market and they determine the intensity of competition and hence the profitability and attractiveness of an industry. We further look into how the strategy and industry structure is placed in the field of healthcare and hospitals and analyze the attractiveness of the overall industry. 2.2 Rivalry among competitors Industry Rivalry is one of the 5 forces used to determine the intensity of competition in the industry. Competition in health care is the potential to provide with a mechanism to reduce cost and hence accessible

    Read More

  • Advantages And Disadvantages Of Government Intervention

    1195 Words  | 5 Pages

    1) Government may intervene in a market in order to try and restore economic efficiency. One of the ways the government intervention can help overcome market failure is through the introduction of a price floors and price ceilings. If prices are seen to be too high, price ceiling or a maximum price could be imposed on a market in order to moderate the price of the product. This policy is often used when there are concerns that consumers cannot afford an essential product, such as groceries. The effect of a maximum price could create a shortage as it could lead to demand exceeding supply for that particular good.

    Read More

  • Environmental Influences An Organization Face

    918 Words  | 4 Pages

    Competition is when two companies sell similar or identical products or services and adjust their prices to gain customers business. This can be in local competition or global. Competition can affect a company positively by forcing them to think outside the box in order for their products to stand out. They have to make their products better to get the consumers attention. Competition can also affect a company negatively when one company has a competitive edge.

    Read More

  • Essay On Importance Of Financial Management

    812 Words  | 4 Pages

    Financial management “is the operational and financing activity of a business that is responsible for obtaining and utilizing the funds necessary for effective operations. Thus, Financial Management is concerned with the effective funds management in the business process. Finance is interrelated functions which deals with marketing function, production function, Human Recourse function and Research & development activities of the business concern. Financial Management is concerned with the financing, acquisition and management of assets with some overall goal in minds. There are three major areas in Financial Management decision making.

    Read More

  • Oligopoly Case Study

    1870 Words  | 8 Pages

    1.0 INTRODUCTION In an economy, there exists different market structures to accommodate different industries and firms. This study will be made to understand in further depth the market power of different market structures, and in particular an example of using case studies of agricultural sector of the French markets to explain how an ideal perfectly competitive market works. This will then be further strengthened with several references linked to the case study. 1.1 Monopoly market

    Read More

More about Essay On Competition In Banking Industry

Open Document