From "How Competitive Forces Shape Strategy" by Michael E. Porter, March 1979. Copyright © 1979 by Harvard Business School Publishing Corporation; all rights reserved. Five forces analysis assumes that there are five important forces that determine competitive power in a business situation. These are: i. Power of suppliers: Banking is today a capital-intensive business, with high fixed costs and low margins (Carrington et al., 1997). ii. Buyer Power: Customers can choose from three other major banks to turn to when they need better service and lower prices. iii. Competitive Rivalry: There are four large, established banks in South Africa offering equally attractive products and services. Customers of major banks will go elsewhere if they don't get a good deal. On the other hand, if no one else can do what is expected to be done, then the leader can often have extraordinary strength. iv. Threat of Substitution: The ability of bank customers to find a different way to make cross-border payments is limited due to exchange control regulations, and licensed operators require a banking license to operate a financial institution. Therefore the threat of replacement is