MBA540MODULEFIVEMILESTONETWOPOWERPOINT.pptx

SNHU MBA 540 MILESTONE TWO
EXTERNAL ENVIRONMENTAL ANALYSIS OF DEUTSCHE BANK AG
ALEXANDER APANYIN

DEUTSCHE BANK AG TOP COMPETITORS
Deutsche Bank:
A financial service provider delivering commercial, investment, private, and retail banking services. At the core of a corporate bank division is the Global Transaction Banking (GTB) business. The Investment Bank focuses on financing, advisory services, fixed income, and currencies providing strategic advice to corporate clients, including a focused equity capital markets business. The Private Bank focuses on private customers across various segments as well as business clients.
Deutsche Bank’s top competitors include Groupe:
BPCE,
Commerzbank,
Standard Chartered
UBS.

Groupe BPCE:
Specializing in a range of banking and insurance activities. It offers its customers a comprehensive range of products and services: savings and investment solutions, cash management services, financing solutions, insurance, and wholesale banking services.

Commerzbank:
An international commercial bank. It serves private and business customers as well as corporate clients. The Private and Small Business Customers segment offers current and savings accounts, credit cards, loans and mortgages, investments, financial advisory, as well as business accounts, electronic banking, POS systems, and integrated payment management. The corporate segment provides transaction banking, corporate financing, finance advisory, and investment solutions.
 
Standard Chartered:
A company that provides banking products and services to individuals and enterprises. It operates in two segments: Corporate, Commercial, and Institutional Banking (CCIB) and Consumer, Private, and Business Banking (CPBB). Standard Chartered specializes in investments, risk management, debt capital, securities services, structured and project financing, cash management, payments and transactions, trade finance products, portfolio management, deposits, savings, mortgages, credit cards, personal loans, etc.

UBS:
UBS is a diversified global financial services company providing financial advice and solutions to private, institutional, and corporate clients. It offers wealth management, asset management, personal and corporate banking, and investment banking services.

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DEUTSCHE BANK AG COMPETITIVE ADVANTAGES
What sets Deutsche Bank apart from other banks is the way that we do business. Our values – integrity, sustainable performance, client centricity, innovation, discipline, and partnership – are expressed through the day-to-day actions of our people. Our competitive advantage comes from bringing together creative, intelligent people with different perspectives, experiences, and ideas – and encouraging them to work together but to think for themselves. Change means opportunity and you could be part of it.

Why Deutsche Bank? A leading global bank with roots in Germany, Deutsche Bank is positioned for success. Building from a strong heritage and a clear financial position, we have a sound strategy for the future. Over the next five years, we are making significant investments in infrastructure, digital technology, and regulatory compliance, as well as structural changes that make us a more efficient, less complex, and more resilient bank. We are also investing in talent – our Birmingham office is ready to grow.
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DEUTSCHE BANK AG SKILL SET, PRODUCTS, AND VALUES
At Deutsche Bank, we strive to excel by working with discipline and integrity to minimize risk and deliver continuous improvement and efficiency. Everyone can achieve their potential and make a difference. Together we can challenge more, become more.
A leading employer.
Recognition and reward.
Diverse workforce.
A great place to live and work .
Career Mobility .
We value your individuality .
Training and development .
Local opportunities.
You can make a difference .

A leading employer: We are the only global bank in the Midlands that offers diverse experience across range of areas, many of which are specialist – including Asset and Wealth Management, Investment Banking, Technology, Operations, Compliance, Legal, Audit and Human Resources.

Recognition and reward: We want every employee to share in our success and make sure we compensate them fairly. This includes a range of competitive benefits to support everyone’s lifestyle, from flexible working to pension plans. Meanwhile more than 200 employees are recognized each year for their achievements and contributions as part of our reward and recognition programs.

Diverse workforce: We work in a diverse, multi-cultural and truly global environment. Our workforce is not limited to people with backgrounds in banking or financial services, we attract people from across industries. Our competitive advantage is gained by bringing together people with different perspectives, experiences, and ideas.

A great place to live and work: Britain’s second-largest city after London, Birmingham is a lively and exciting place to be. Our people enjoy a high quality of life and an excellent standard of living. Our diverse workforce reflects the city’s rich mix of cultures and communities. Plus, given the city’s excellent connections to London, there are always plenty of opportunities for collaboration.

Career Mobility: We are committed to developing your career. This means that there is a lot of internal mobility at Deutsche Bank, and you always have the opportunity to look into other roles within the organization. That is just one of the benefits of being part of a global business that works across a multitude of areas. Ultimately, if you want to go places, you can.

We value your individuality: Here you can be an individual within a diverse and inclusive environment. There is a true community spirit. You are given lots of opportunities for involvement in a vast range of activities covering Corporate Social Responsibility, Diversity & Inclusion, Learning & Development, Sports & Social, and much more.

Training and development: We put developing our people’s talent at the heart of what we do. We have a dedicated team of experts, including many technical specialists, and a range of learning and development offerings. From workshops and formal courses to e-learning platforms and online tutorials, there is plenty of support for people who want to grow and progress with Deutsche Bank.

Local opportunities: Global exposure Our Birmingham office offers a global cross-cultural environment and has strong connections to London and the rest of our international business. Our people are encouraged to share their ideas and get involved in solutions, projects, and initiatives with potentially global impact. We are a big business, but every individual’s point of view matters. Embracing different perspectives, experiences and ideas is what keeps us alert, nimble and ready to innovate.

You can make a difference: We value your ideas. We highly encourage employees to share them, get involved and celebrate success. Our talent and development programs encourage our people to share and innovate to help shape the future of the bank – no matter how big or small those improvements may be

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Deutsche Bank AG Porter Five (5) Forces Analysis for Financial Industry

Threats of New Entrants
Bargaining Power of Suppliers
Bargaining Power of ers
Threats of Substitute Products or Services
Rivalry among the Existing Competitors

Deutsche Bank AG Porter Five (5) Forces Analysis for Financial Industry (CONT’D)

Threats of New Entrants. (VERY HIGH)
New entrants in Foreign Regional Banks brings innovation, new ways of doing things and put pressure on Deutsche Bank AG through lower pricing strategy, reducing costs, and providing new value propositions to the customers. Deutsche Bank AG manages all these challenges and build effective barriers to safeguard its competitive edge.

How Deutsche Bank AG tackles the Threats of New Entrants
By innovating new products and services. New products not only bring new customers to the fold but also give old customer a reason to Deutsche Bank AG ‘s products.
By building economies of scale so that it can lower the fixed cost per unit. 
Building capacities and spending money on research and development. New entrants are less likely to enter a dynamic industry where the established players such as Deutsche Bank AG keep defining the standards regularly. It significantly reduces the window of extraordinary profits for the new firms thus discourage new players in the industry.

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Deutsche Bank AG Porter Five (5) Forces Analysis for Financial Industry (CONT’D)
Bargaining Power of Suppliers. (LOW)
Almost all the companies in the Foreign Regional Banks industry their raw material from numerous suppliers. Suppliers in dominant position can decrease the margins Deutsche Bank AG earn in the market. Powerful suppliers in financial sector use their negotiating power to extract higher prices from the firms in Foreign Regional Banks field. The overall impact of higher supplier bargaining power is that it lowers the overall profitability of Foreign Regional Banks

Deutsche Bank AG tackles Bargaining Power of the Suppliers
By building efficient supply chain with multiple suppliers.
By experimenting with product designs using different materials so that if the prices go up of one raw material, then company can shift to another.
Developing dedicated suppliers whose business depends upon the firm. One of the lessons Deutsche Bank AG learns from Wal-Mart and Nike is how these companies developed third party manufacturers whose business solely depends on them thus creating a scenario where these third-party manufacturers have significantly less bargaining power compared to Wal-Mart and Nike.

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Deutsche Bank AG Porter Five (5) Forces Analysis for Financial Industry (CONT’D)
Bargaining Power of ers. (HIGH)
ers are often a demanding lot. They want to the best offerings available by paying the minimum price as possible. This put pressure on Deutsche Bank AG profitability in the long run. The smaller and more powerful the customer base is of Deutsche Bank AG the higher the bargaining power of the customers and higher their ability to seek increasing discounts and offers.

Deutsche Bank AG tackles the Bargaining Power of ers
By building a large base of customers. This will be helpful in two ways. It will reduce the bargaining power of the ers plus it will provide an opportunity to the firm to streamline its sales and production process.
By rapidly innovating new products. Customers often seek discounts and offerings on established products so if Deutsche Bank AG keep on coming up with new products, then it can limit the bargaining power of ers.
New products will also reduce the defection of existing customers of Deutsche Bank AG to its competitors.

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Deutsche Bank AG Porter Five (5) Forces Analysis for Financial Industry (CONT’D)
Threats of Substitute Products or Services. (VERY HIGH)
When a new product or service meets a similar customer needs in different ways, industry profitability suffers. For example, services like Dropbox and Google Drive are substitute to storage hardware drives. The threat of a substitute product or service is high if it offers a value proposition that is uniquely different from present offerings of the industry.

Deutsche Bank AG tackle the Treat of Substitute Products / Services
By being service oriented rather than just product oriented.
By understanding the core need of the customer rather than what the customer is ing.
By increasing the switching cost for the customers
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Deutsche Bank AG Porter Five (5) Forces Analysis for Financial Industry (CONT’D)
Rivalry among the Existing Competitors. (VERY HIGH)
If the rivalry among the existing players in an industry is intense then it will drive down prices and decrease the overall profitability of the industry. Deutsche Bank AG operates in a very competitive Foreign Regional Banks industry. This competition does take toll on the overall long-term profitability of the organization.

Deutsche Bank AG tackles Intense Rivalry among the Existing Competitors in Foreign Regional Banks industry
By building a sustainable differentiation
By building scale so that it can compete better
Collaborating with competitors to increase the market size rather than just competing for small market.

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Implications of Porter Five Forces on Deutsche Bank AG/OPPORTUNITIES

By analyzing all the five competitive forces Deutsche Bank AG strategists gain a complete picture of what impacts the profitability of the organization in Foreign Regional Banks industry.

This helps Identify game changing trends early on and swiftly respond to exploit the emerging opportunity. By understanding the Porter Five Forces in detail Deutsche Bank AG is able to shape those forces in its favor by increasing in revenue or market share.
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REFERENCES
Db.com. 2021. Strategy – Deutsche Bank. [online] Available at: [Accessed: JUNE 12, 2021].
Db.com. 2021. What we do – Deutsche Bank. [online] Available at: [Accessed JUNE 12, 2021].
Analysis of the External Environment: Opportunity and threat. [online] Available at [Accessed on JUNE 12, 2021

Top Deutsche Bank Competitors and Alternatives | Craft.co. [
online] Available at < https://craft.co › deutsche-bank › competitors> [Accessed on JUNE 12, 2021