Essays on Assessing the Strengths, Weaknesses, Opportunities and Threats of the P2P Industry Case Study

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The paper "Assessing the Strengths, Weaknesses, Opportunities and Threats of the P2P Industry" is a perfect example of a micro and macroeconomic case study.   In the evaluation of an industry growth market potential and the future and expansion system of such an industry, the porter’ s five forces analysis comes into play. In this regard, the application of the porters five force analysis ensures that the industry is evaluated against all the variables to ensure and establish its current market worth s well as the external market expectations (Roy, 2009, p. 84).

This section offers a critical analysis of the Australian P2P industry through a porters five forces analysis 1.1.1 Buyers Bargaining Power An evaluation of the buyer's bargaining power in the current P2P market in Australia indicates an average buyer bargaining power. A buyer's bargaining power is described as the extent and nature to which organisational and industry buyers can influence decisions in the industry. This is normally enhanced by the limited number of buyers as well as the ease of switching from one brand to the next to minimal cost and implications.

The P2P industry relies on the use of modern technology systems and algorithm decision-making processes to determine creditworthy customers to loan out their cash. As such, this implies that although different organisations could offer and provide unique and differentiated services, the overall process is standardized (Gardner, 2011, p. 44). Thus, this empowers the buyers in that they can easily shift from one p2p lender to the other online at minimal costs. However, the extent and magnitude of buyers' bargaining power are relatively reduced by the number of available suppliers in the market.

In this regard, an n evaluation of the industry indicates that it is at its growth stage. This means that the industry is at its growth stage. In fact, other than splinter companies from those serving in the UK and USA, the Australian domestic market only has two main companies namely the Society One and Market Lend respectively. This means that although the buyers have a choice of selecting their preferred organisation of choice, they are limited to the low number of suppliers in the market. However, this trend is expected to change in the future.

References

Davies, J. 2015, Who offers peer to peer lending in Australia, Canster, [Online] Available at: < http://www.canstar.com.au/p2p-lending/who-offers-peer-to-peer-lending-in-australia/> [Accessed: 21st April 2016]

Dowskin, E, 2015, Lending Startups Look at Borrowers’ Phone Usage to Assess Creditworthiness, Wall Street Journal. [Online] Available at: < http://www.wsj.com/articles/lending-startups-look-at-borrowers-phone-usage-to-assess-creditworthiness-1448933308> [Accessed: 21st April 2016].

Gardner, J. A. 2011, Innovation and the Future Proof Bank: A Practical Guide to Doing Different Business-as-Usual, New York, NY, John Wiley & Sons

Morgan Stanley, 2015, Can P2P Lending Reinvent Banking? [Online] Available at: < http://www.morganstanley.com/ideas/p2p-marketplace-lending> [Accessed: 21st April 2016].

P2P Banking, 2016, P2P Lending – a View from Australia, [Online] Available at; < http://www.p2p-banking.com/category/countries/australia/> [Accessed: 21st April 2016].

Roy, D. 2009, Strategic foresight and Porter's five forces: Towards a synthesis, GRIN, Munchen

UNCTAD, 2002, E-commerce and development report 2002, United Nations, New York

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