HSBC has recommendations for their customers online and this can be viewed, customers can apply for new products and services via their internet banking.

HSBC communicate with their customers online via "My Message" it is secure medium that distributes information both ways, i. e. from customer to employee and vice versa. Customers can view and amend their personal details i. e. view and amend their marital status, the number of children they have or their contact details.

They can also amend their address details i. e. view and amend their current details. Customers can choose how frequently they want their statement delivered to their home address and also where they want online statement only.

Customers can also choose Contact preferences where it is by Email, Post, Telephone or Mobile Messages (SMS). HSBC also educate their customers on how to get safe online i. e. protect themselves from identify fraud.

2. 3 Analysis and understanding of E-commerce concepts and frameworks.HSBC is one of the world largest banks, in fact it is among the top two largest banks in the world. HSBC has a large scale of operations that gives a significant bargaining power.

The frameworks that will be used in this report are SWOT Analysis and Porters Five Forces Model (FFM) Five Forces Model is used in a competitive environment to contrast. It focuses on the single business rather than products i. e. a single products or a range of products. This model is a very influential analytical model used to assess the nature of competitiveness in an industry.

These forces are linked together in one way or another, as will be highlighted in the discussion below. Threats of new entrants This threat is very low, entering the banking industry is not an easy task, it costs a lot to set up and the profit do not materialise as soon as the financial institution is established. Most new banks enter through an existing 'building society' e. g. Halifax; this is because, apart from the financial burden, entering the banking industry is relatively easy.A new bank can rely on the Bank of England for financial backing and entice customers with better offers than rival banks are offering.

It is a common culture that one individual has more than one bank account with different banks therefore, customers would be willing to give the new financial institution a try. Several customers have allegedly switched banks this way, if Bank A offers better services than Bank B, customers have the power to abandon Bank A and move their assets and valuables to Bank B.HSBC has significantly reduced this threat by setting a high standard that any new bank must attain in order to survive and maybe, grow. A new bank must be able to offer 24hr customer services, both online and via the telephone, it must have standard online banking platform and security-assured passwords. In addition, the new entrant's products and services must be at a high quality level which can reach up to the same standard as the rest of the banks.

Rivalry amongst existing competitorsThe UK banking industry is highly saturated with banks offering similar products and services. This has resulted in the need for HSBC to try to gain competitive edge by offering unique services and choices for customers worldwide. HSBC has successfully minimised this rivalry by having branches in over 80 countries in the world, this strategy gives them the sort of advantage that products like McDonalds and Coca Cola benefit from; global recognition and a sense of serenity and familiarity when their red sign is viewed by foreigners and nationals of any country.This rivalry between banks has resulted in customers having the opportunity to choose from a vast array of products and services available to them; for example, from the beginning of the month of August onwards, banks like HSBC start to offer student accounts with overdraft facilities and additional perks that attempt to entice new university students to bank with them. The competition has been healthy so far but there has been recent loan comparison advertisements made by rival financial institutions stating better loans and interest rates, etc than HSBC and some other banks.Bargaining power of suppliers The banking industry rarely has as much suppliers as a retail industry, they have a short network of people supplying them with tools and products necessary for their activities.

Examples of such suppliers are Bank of England, IT and E-commerce experts, etc. In this situation, the Bank of England has high supplier power as all financial decisions made by HSBC and other banks have to be verified by the central bank. Other types of suppliers have significantly lower power over banks as there are high amounts of labour and technology on offer.Bargaining power of buyers There is little alternative to banking, it is the safest method of keeping money and properties.

Within the banking industry, the high competitive rivalry (mentioned earlier) gives buyers i. e. customers high bargaining power and as such, the opportunity to choose from a variety of readily available financial institutions. HSBC tries to encourage longevity in bank-customer relationship by offering loyalty schemes and long-term benefits to their customers. They regularly upgrade customers' accounts to make them feel a sense of belonging and loyalty to the bank.

Threat of substitute products and services The only substitute for personal banking is keeping the valuables at home which are quite unsafe whereas other types of banking e. g. mortgages cannot be substituted, regardless of the financial institution involved. Substitutes for products and services offered by HSBC are quite numerous due to the high competitive rivalry in the banking industry. Other financial institutions have claimed to offer better loan rates and lower interest rates than HSBC, whilst some offer better incentives for new students.

HSBC reduced this 'student account' threat by offering gradual repayment of overdrafts even after the student becomes a graduate, this has made them more appealing to students as it is highly unlikely that they can pay back all their overdraft as soon as the finish studying. 2. 4 Understanding E-commerce implementation issues The strategy plan that was established for HSBC was developed through environmental analysis and portfolio analysis that was undertaken. The financial services industry is intense and the UK market has been influenced by the impact of the ever rising regulation and government driven control.The future of the competition will be any less fierce or regulation any less intrusive.

The strategy plan developed exists to understand HSBC's current market position in the financial services industry. The plan focuses on how the organisation can move forward as with direction, urgency and purpose. The strategy plan was also developed in order to have a significant impact on the industry and most importantly the plan also exists to highlight how to achieve a competitive advantage over financial service providers.Strategic planning turns an organisations vision into concrete achievable. Strategic planning describes the initiatives that will achieve the vision in ways deemed consistent with the organisation it was assumed market and the competitive environment. However, in developing a strategy plan it is vitally important to involve the creation of new and lasting competitive advantages and the development of new products and services.

It is important whilst strategy making that innovation and dynamism is concurrently endeavoured for as suggested by (Porter 1987) The strategy plan developed consists of a vision for HSBC followed by a mission aims. The aims highlight how HSBC will continue to strive for market leadership. Strategy plan is a complex task, once the strategy plan has been developed and strategies have been underpinned, the outcome has a clear direction for the HSBC to remain competition and also prepare for the for the uncertain future ahead.