Mellon Strategic Analysis
Strategic Mangement
CASE: Mellon
1) The most important general environmental factors for Mellon are;
a. Economics: Mellon specializes in managing company’s finance, there for it is very important for the economy to prosper in order for Mellon to retain clients and perform their specialization.
b. Political/Legal: Since Mellon operates out of the U.S and Canada, it is very important that laws and regulations are exercised to avoid conflict. There is a great deal of regulations associated with the finance and banking industry.
c. Global Segments: It is very important that the Canadian market performs well because Mellon has a joint venture with CIBC who operates out of Canada.
2) The most important of the five industry forces are;
a. Threat of substitute products: Mellon and CIBC offer a very unique service by combining both firms specialization, they are able to offer a one of a kind service for large firms. Therefore it is very hard for companies to find other superior service compared to Mellon’s.
b. Rivalry among competing firms – Mellon and CIBC has a huge market share in this line of financial service. Mellon and CIBC offer the best services in its field while also offering the best customer service. The exceptional service combined with their long portfolio allows them to have the competitive advantage eliminating any rivalries.
c. The industry is not attractive to new entrants
3) The two major competitors are UBS AG and Bank of Montreal. UBS AG is another financial services company that operates worldwide. I predict that this company will allocate more of their services to the U.S and Canada to compete with CIBC Mellon. Bank of Montreal offers banking services, they have a huge presence in Canada and also has locations in the U.S. I predict that they will create a joint venture with a financial service company such as UBS AG to compete with CIBC Mellon. Like CIBC Mellon.
4) The most important value chains are;
a. Human Resources: CIBC
CASE: Mellon
1) The most important general environmental factors for Mellon are;
a. Economics: Mellon specializes in managing company’s finance, there for it is very important for the economy to prosper in order for Mellon to retain clients and perform their specialization.
b. Political/Legal: Since Mellon operates out of the U.S and Canada, it is very important that laws and regulations are exercised to avoid conflict. There is a great deal of regulations associated with the finance and banking industry.
c. Global Segments: It is very important that the Canadian market performs well because Mellon has a joint venture with CIBC who operates out of Canada.
2) The most important of the five industry forces are;
a. Threat of substitute products: Mellon and CIBC offer a very unique service by combining both firms specialization, they are able to offer a one of a kind service for large firms. Therefore it is very hard for companies to find other superior service compared to Mellon’s.
b. Rivalry among competing firms – Mellon and CIBC has a huge market share in this line of financial service. Mellon and CIBC offer the best services in its field while also offering the best customer service. The exceptional service combined with their long portfolio allows them to have the competitive advantage eliminating any rivalries.
c. The industry is not attractive to new entrants
3) The two major competitors are UBS AG and Bank of Montreal. UBS AG is another financial services company that operates worldwide. I predict that this company will allocate more of their services to the U.S and Canada to compete with CIBC Mellon. Bank of Montreal offers banking services, they have a huge presence in Canada and also has locations in the U.S. I predict that they will create a joint venture with a financial service company such as UBS AG to compete with CIBC Mellon. Like CIBC Mellon.
4) The most important value chains are;
a. Human Resources: CIBC