Analysis of Investment Banking

             Goldman Sachs Group had a high revenue of $87,968 in 2008, they also fell drastically in 2009 with $53,579 in revenue, and they have continued to decrease during 2010-2012 with revenues of $51,673, $45,967, and $36,793. Compared to the other three companies, Goldman Sachs Group has the second highest revenues.
             Morgan Stanley also had a high revenue for 2008 of $87,879. They also dropped in revenue in 2009 to $62,262. They had another drastic fall in 2010 with $31,515 but have had an increase over 2011-2012 with $39,320 and $39,376 in revenues. Compared to the other three companies they have the third highest revenues. .
             Lastly is JP Morgan Chase and Co., who in 2008, reported $116,353 in revenues. They also had a reduction in revenues in 2009 but not as drastic as the other companies reporting $101,491 in revenues. Through 2010-2012 they also have remained fairly constant with revenues of $115,632, $115,475, and $110,838. Compared to the other three companies, JP Morgan is by far the top revenue earning company. .
             PORTERS FIVE FORCES.
             Rivalry with competitors.
             The investment industry has been through many changes in recent years. Rivalry within this industry is now considered HIGH. Historically, the industry has resembled a pyramidal structure, with the "bulge bracket" firms at the top and "boutique" banks at the bottom. The existence of relatively few competitors in the bulge bracket reduced rivalry. However, times are changing, and since the repealing of the Glass-Steagall Act, which effectively prevented commercial banks from being in the investment banking business, competition has grown fiercer.
             Bargaining powers of buyers.
             In the investment industry the bargaining power of buyers is MEDIUM. When a clients is heavily invested with one company it would be time consuming and cumbersome as well as costly to switch from one company to the other. Buyers can also use the internet and phone to get their basic investment needs met as well and the rates can be compared easily because information to these things our accessible.