Market Capitalisation In Australia Samples †MyAssignmenthelp.com

Question: Discuss about the Market Capitalisation In Australia. Answer: SWOT Analysis This report reflects the strength, weakness, opportunity and threats of Australian and New Zealand Banking group. It is the fourth largest bank by market capitalisation in Australia. Strength Financial projection of company Australian and New Zealand Banking group has been maintaining AUD 21.07 billion amount of total revenue. Furthermore, average 15% increment in done by company since last four years in its overall total turnover (Lusardi Mitchelli, 2007). Market capitalization It is evaluated that currency share price of company is traded at AUD $ 29.9 which is 30% more as compared to its face value. This level of premium in its share price has been observed due to its high brand image in market. Weakness High level of traits and penalties Company has been facing problems of high amount of penalties due to its non-compliance of banking and financial rules and regulation. Company has to deposit standard amount with the central bank which increases its overall cost of capital. Market size There are several rivals in the market such as Commonwealth Bank, Westpac Banking Corporation and National Australia Bank who have covered high market share. In addition to this, ANZ needs to make diversification in its business. Opportunity Global market share Australian and New Zealand Banking group has global market share and could increase its overall strength by tapping other international market share. Growing economy Australian economy has been showing 8% increment in its GDP since last five years. This will increase the overall investors investment capacity and will result to high cash inflow for Australian and New Zealand Banking group (Narayan, 2010). Threats Rivals offering There are several competitors such as Commonwealth Bank, Westpac Banking Corporation and National Australia Bank who have been showing high market coverage and offering high interest rate to investors. Increasing cost It becomes hard for Australian and New Zealand Banking group to offer more interest amount to investors to create value on their investment due to high cost of capital. References Lusardi, A., Mitchelli, O. S. (2007). Financial literacy and retirement preparedness: Evidence and implications for financial education.Business economics,42(1), 35-44. Narayan, P. K. (2010). Fiji's tourism industry: a SWOT analysis.Journal of Tourism Studies,11(2), 15.