This website uses cookies to ensure you have the best experience. Learn more

Canadian Banking Oligopoly Essay

1983 words - 8 pages

The Canadian Banking Oligopoly
“A market situation in which control over the supply of a commodity is held by a small number of producers to sell”1, is the standard definition for the market structure of an oligopoly. As simple and as straightforward as the definition may read, an oligopoly is actually a rather complicated and multi-layered market model. In the next few pages of this report I will analyze the oligopoly of the Canadian banking industry and reveal the factors the oligopolists have to consider; type of product, strategic behavior and mutual interdependence, entry barriers, merger’s, some of the shortcomings of this market structure as well as the potential for profits.
...view middle of the document...

Although the various banks may offer a slightly different experience, they are essentially providing the same services with only minimal differences, certainly not enough to call them a differentiated oligopoly. For example, when comparing the basic account product provided by the banks the table below shows just how standardized the product is. Please note the very slight variances, if any at all.

Basic Bank Accounts offered5
“Big 5” bank Account Name Monthly
fee Rebate Debits per month Overdraft Protection fee
RBC Day to Day Account $4 free with an investment and credit card 15 $3/month
TD Value Account $3.95 free with a $1,500 minimum balance 10 $4/month
Scotiabank Basic Banking Account $3.95 N/A 12 $5/month
BMO Practical Plan Account $4 free with a $1,000 minimum balance 10 $2.50/month
CIBC Everyday Chequing Account $3.90 free with a $1,000 minimum balance 10 $5/month

Strategic Behaviour and Mutual Interdependence
With only a few banks truly having control of Canada’s banking industry, it is important for them to ensure that they are fully aware of what each other is doing to remain competitive. The oligopolist must consider how its rivals will react to any change in its price, output, product characteristics or advertising.2 To aid in the knowledge of what their competitors are doing, each of the “Big 5” have not only established their headquarters in the same city, the CEOs work literally within a few hundred meters of each other in downtown Toronto. This makes it easy for the banks to monitor each other.6 Due to the close existence of the banks, not only in geographic location, but also in the products, and services they provide and their characteristics and ideology, it is important to understand their strategic behaviour and mutual interdependence.
Strategically, each of the banks try to establish themselves somewhat separately from the others. The purpose for this is to differentiate the corporation so that they may meet a need or want of a consumer that the other banks do not, therefore, increasing their chance for increased profit. By visiting each of the “Big 5” websites and reading the “About Us” section it becomes apparent that each bank has created their very own strategic behaviour. The chart below5 demonstrates what I found.
“Big 5” bank Strategic Behaviour Description
RBC Corporate Banking Canada’s largest bank as measured by assets and market capitalization, and among the largest banks in the world, based on market capitalization.
TD Diversification Provides a full range of financial products and services to personal and small business customers. (Pesonal banking, commercial banking, financial services, TD America, TD Waterhouse, Asset Management, Ameritrade, Insurance and Securities.)
Scotiabank International Banking One of North America's leading financial institutions, and Canada's most international bank. They provide innovative financial products and services to individuals, small and...

Other assignments on Canadian Banking Oligopoly

Course Syllabus Essay

2610 words - 11 pages [pic] COURSE SYLLABUS Semester: Fall, Year: 2012  College Mission Statement Richard J. Daley College provides high-quality education which leads to academic success, career development, and personal enrichment that fulfill diverse community needs. Mathematics Department Mission Statement Our mission is to deliver excellent service and to provide learning opportunities by offering a wide range of mathematics courses, which will help our

Management Essay

1477 words - 6 pages Boeing Management Planning Heather Oetzel MGT 330 October 22, 2012 Joe Cheng Abstract Boeing is known as “the world’s leading aerospace company and the largest manufacturer of commercial jetliner and military aircraft combined ("The Boeing Company: About Us", 2012). Every company uses different types of management techniques including how the planning function of management is used. Planning allows organizations to develop how the

Assisted Suicide

1015 words - 5 pages Should physician-assisted suicide be legal? While I believe if one chooses to end his or own life through physician assistance for reasons that they chose, the choice should be up to the individual. Physician-assisted suicide should be at one's discretion. “Assisted Suicide, also called Voluntary Euthanasia, is currently a contentious issue in many countries. Because Euthanasia is legal in a few modern democracies: the Netherlands, Belgium

Tanglewood Case 1

797 words - 4 pages Tanglewood’s staffing strategy requires the organization to make key decisions about the acquisition, deployment, and retention of the organization’s workforce. In order to accomplish this, Tanglewood’s must make thirteen decisions regarding its staffing levels and its staffing quality. One of the first decisions that Tanglewood needs to choose is to acquire or develop talent. Tanglewood should try to develop their current talent because one

Nnnnn

1391 words - 6 pages Есе по въпроса: Кои от всички „действащи” лица могат да се разглеждат като морално отговорни и в какво именно? по казуса Форд „Пинто” Корпоративните злодеяния са нанесли повече вреди на обществото от всички улични престъпления взети заедно. Според данни на ФБР сумата от уличните престъпления възлиза на $3.8 млрд. годишно, а загубите от корпоративните измами между $100 млрд. и $400 млрд. годишно

The Penis

1052 words - 5 pages The short story ”The Penis” is written by Hanif Kureishi. The short story is about a penis, which has been separated from its owner Doug, who we hear from later on. At first though we hear about a guy called Alfie who was “a cutter – a hairdresser – and had to get to work”. He is having breakfast with his wife, when she asks him what he did last night, and if he had a good time last night? Alfie can not remember what he did last night, he then

Managed Care Paper

543 words - 3 pages Managed Care and Case Management Care Marvin Lloyd BSHS/402-Case Management 27 August 2012 Virgil Miller Managed Care are techniques employed to help reduce the cost for providing health benefits and a system for improving organizations quality of care

Media

439 words - 2 pages The life expectancy is lower; so people are not kept alive with drugs for decades in a virtual sleep state. There is less state education; so kids don't have it drilled into them that their only goal in life is to make money, at the cost of 'everything' else. The health care is less; so diseases, usually brought by Westerners, kill many more than they do in countries where drug companies can make a fortune from selling medicines that aren't

Chapter 6 International Business

7113 words - 29 pages telecommunications. Similarly, 102 countries pledged to open to varying degrees their banking, securities, and insurance sectors to foreign competition. Like the telecommunications deal, the agreement covers not just cross-border trade, but also foreign direct investment. The WTO in Seattle: A Watershed? M) The 1999 meeting of the WTO in Seattle was important not only for what happened between the member countries, but also for what occurred

Scope And Goals

279 words - 2 pages Introduction: Kudler Fine Foods is a specialty food store based in San Diego, California with its three locations in La Jolla, Del Mar, and Encinitas. Kudler Fine food prides itself on offering fresh and organic products that are carefully selected from local farmers and around the world. The organization has recently taken the initiative to start a Frequent Shopper Program to market and increase sales. This program will offer the customers a

Meerkat

251 words - 2 pages Meerkat The meerkat or suricate, Suricata suricatta, is a small mammal belonging to the mongoose family. Meerkats live in all parts of theKalahari Desert in Botswana, in much of the Namib Desert in Namibia and southwestern Angola, and in South Africa. A group of meerkats is called a "mob", "gang" or "clan". A meerkat clan often contains about 20 meerkats, but some super-families have 50 or more members. In captivity, meerkats have an average

Similar Documents

Mgt216 Essay

714 words - 3 pages The first ethical issue presented in the ethics game simulation was whether to warn consumers about the contaminated product and what information to provide consumers about the contaminant. The second ethical issue was whether to sell a product that does not meet U.S. safety requirements in a foreign market that has lower safety restrictions. G-BioSport was not required to meet prior approval from the Federal Drug Administration before they

Economy Effect Of Marijuana Essay

277 words - 2 pages Modern American History by Alan Renga 2nd Mid Term! You will be given 3 Short Essay questions and 20 Multiple Choice questions deriving from this list! 80 points total! The 1920s Warren Harding then Calvin Coolidge Tea Pot Dome 1st Red Scare Immigration Restriction, Sacco and Vanzetti Langston Hughes, Marcus Garvey, KKK Prosperity, advertising Prohibition, Al Capone Flappers, Clara Bow, Rudolph Valentino Babe Ruth, Jack Dempsey

The Vc Shakeout Essay

2033 words - 9 pages ECONOMY 26 Luring a big firm to town is not the secret to job growth DEFEND YOUR RESEARCH 30 Are morning people wired for success? VISION STATEMENT 32 The social web’s east-west divide COLUMN 38 Warren Bennis looks back on his surprising path to fame New Thinking, Research in Progress hbr.org New Thinking, Research in Progress hbr.org FIRST The VC Shakeout Venture capital hasn’t worked for a decade and must be radically

Hospitals Paper

6014 words - 25 pages I hope to provide in this paper a comprehensive understanding for what the term “hospital” has become. Hospitals are an extremely complex system that man has created and shaped and reshaped throughout history. My goal in writing and researching this paper will be to provide those who read it a clear understanding on how the hospital system got to where it is today, and to shed some light on the many organizations that affiliate with and