Business Strategy

Porter’s Five Forces Model

Force	TD bank Example	Force Strength	TD bank’s Response
Bargaining power of customers	Corporations, and High net worth individuals (HNWI) depositors	Medium	Extend attractive offers to clients, additional services to existing clients
Threat of Substitution	Financial services like apple pay, venmo, and peer-to-peer lenders	High	Create our own Digital wallet and financial service that are similar
Bargaining Power of Suppliers	Corporations, High net worth individuals depositors, employees (resource of labor),	Medium	Attract new clients with offers, encourage existing clients to use their financial services, and keep executive employees happy with good salary and benefits.
Threat of new entrants	Requires too much capital, brand identity, government regulations	Low	Maintain brand identity through services that keep attracting clients in case of future threats.
Rivalry	A lot of competition from many other banks in the industry	High	Low switching costs, offers, customer convenience, up to date services,

             The banking industry is very competitive and regulated in the United States. The government controls all the regulations and interest rates that these banking companies model their business' off of. To dominate in this sector you must set your self apart form the competition by providing the best customer service, promotions, and overall convenience. These factors in addition to security, bring in, and retain a wide variety of customers from every income group.

Competitive Strategy

         

                The Competitive Strategy for TD Bank is "Industry-Wide Differentiation". The banking industry is very complex with rules and regulations that every banking corporation must abide by. The way to gain and retain customers is by providing the best service and promotions. The way TD bank excels in customer service and convenience is by having a 24-hour call center and online live interactive professionals to help the customers. Unlike its competitors, TD Bank has the most flexible hours by remaining until 8pm in certain locations, and being open on Sundays. TD bank takes pride in providing constant top-notch customer service, and the customers the ability to bank when you want, and where you want.