Navigating Competition and External Forces: A Strategic Analysis of Bank of America

Competitive rivalry in the Bank of America Organization can be overcome by building a sustainable differentiation to compete better. It can also work together with competitors to grow the size of the market. Supplier power can be earned by setting up a supply chain that is efficient with numerous suppliers. It can be achieved by recruiting and focusing suppliers dependent on the business to grow their enterprise. Smaller enterprises with a strong customer base have very high bargaining power regarding buyer power (Mayabi, 2019). When an organization focuses on building a strong customer base, it slightly reduces its capability to bargain.

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The intimidation from a substitute product or a service is high only if it presents a unique value, unlike those in the industry. It is tackled by deeply understanding the customer's needs and demands rather than based on their buying trends. The threat of newcomers in the Money Center Banks comes with great innovation, putting pressure on the Bank of America Organization. These challenges are managed by building economies of scale and building capacities. Political factors to consider before investing in a certain market include interference and bureaucracy in Money Centre Banks because the Bank of America Organization exposes itself to diverse political threats and risks (Mayabi, 2019). Economic factors to use to its advantage include the country’s rate of growth in the economy.

The increasing inflation and economic indicators of the industry, such as consumer spending, are applied in forecasting the organization's growth curve. On the other hand, social factors that involve common beliefs and attitudes of the customers contribute highly to how markets understand the customer base. It also influences how the marketing message targeting industry consumers is designed. Analysis of the industry's technology should be done in general, and the rate at which the industry is disrupted by technology (Ghez, 2019). Slow speed allows for extra time to cope while a fast pace allows the organization time to stabilize and generate profits.

The organization needs to take caution when evaluating legal factors, including employment law and anti-trust law in the industry. Data protection should also be put into consideration to deal with theft. Lastly, the organization ought to carefully assess the environmental principles required to run in a given market. The standards revolve around factors involving laws regulating environmental pollution and attitudes supporting renewable energy in the industry.

References

Ghez, J. (2019). Architects of Change: Designing Strategies for a Turbulent Business Environment. Cham: Palgrave Macmillan.

Mayabi, B. (2019). Primark. Core Competencies, Pestle Analysis, SWOT-Analysis. Munchen GRIN Verlag.