Mutual Fund Competition

7 Pages 1675 Words

rs of a large mutual fund to help judge the extent of the competitive rivalry between the different firms. Their goal is to acquire competitive advantage within the mutual fund industry. They achieve competitive advantage when their firm is able to deliver the same benefits as their competitors, but drive home a better return for their clientele. Another consumer benefit that can help give a firm competitive advantage would be the ability to transfer funds within, without incurring transfer charges to the consumer. This enables the firm to create superior value for its customers and superior profits for themselves.
The buyer’s power plays a significant role in the succession of mutual fund firms. In the mutual fund industry, society tends to want to buy what works, and what pays back the largest returns. This possesses a potential backward integration threat. Consumers can pull out and purchase their stocks and bonds from another firm if they feel the other firm is getting a better return on...