GOLDMAN SACHS-COMPANY PROFILE

Subject-Marketing Strategy Professor-Amit Gupta By Jacky

Osman

Subhank
SPABF;SBBA 15

1/17

Goldman Sachs
About the Company
The Goldman Sachs Group, Inc. (NYSE: GS) is an American multinational bulge bracket investment banking firm that engages in global investment banking, securities, and other financial services. Goldman Sachs was founded in 1869 and is headquartered at 200 West Street in the Lower Manhattan area of New York City.
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Samuel Sachs (L) Marcus Goldman (R)

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OFF BALANCE SHEET ITEMS

4/17

SEGMENTATION
Equities Segment Investment Banking Segment Derivatives Segment Commodities Segment IPO Segment Fixed Income Segment

5/17

TARGETING
Other Investment Banks (for funding) Large Corporates Institutional Investors-DIIs,HNI`s Retail Investors a)Individual Investors eg. Youth, Middle aged people, Old people receiving pension (>60 yrs) b)Mutual Fund eg.Children`s Education Fund, Tax Saver Fund (for people with high tax brackets)
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POSITIONING

7/17

GS Strengths
Our clients interests always come first. Our assets are our people,capital and reputation. Our goal is to provide superior returns to our shareholders. We make an unusual effort to identify and recruit the very best person for every job. We stress teamwork in everything we do.
8/17

GS Weakness
Less focused towards retail investors. Ex employees have dampened company`s image. Overexposure towards commercial paper. May be interrogated by the SEC in connection with the Barclay`s LIBOR Trading Scandal. Is losing business in the futures and options segment to its rival Interactive Brokers.
9/17

Opportunities
Stronger GDP growth from BRICS,Middle East and Asia Pacific can help them create momentum. Large no. of retail investors in India and China can be tapped. Private equity deals - Despite economic woes, historically more and more startups have been privatized in the entire world. Providing M&A strategies to conglomerates. Increasing their exposure towards commodities.
10/17

Threats
Purchasing or retaining residual and other interests in special purpose entities such as mortgage-backed and other asset-backed securitization vehicles; Holding senior and subordinated debt, interests in limited and general partnerships, and preferred and common stock in other nonconsolidated vehicles. Entering into interest rate, foreign currency, equity, commodity and credit derivatives, including total return swaps; Entering into operating leases for a long perid. Providing guarantees, indemnifications, loan commitments, letters of credit and representations and warranties.
11/17

Porter`s 5 Forces Analysis

Intensity of Existing Rivalry Exit barriers are low. Relatively fewer competitors Fast industry growth rate-13 % p.a Large industry size MEDIUM

12/17

THREAT OF SUBSTITUTES
Limited Number of substitutes. Substantial Product Differentiation. Substitute product has lower efficiency. Substitute product is inferior.

LOW
13/17

THREAT OF NEW COMPETITORS

Entry barriers are high High Learning Curve Customers are loyal to existing brand Industry requires economies of scale Advanced technologies are required Capital Intensive High Sunk Costs limit new competition

LOW
14/17

BARGAINING POWER OF SUPPLIERS

Volume is critical to suppliers ie. Exchanges Diverse distribution channels Low concentration of suppliers

LOW

15/17

BARGAINING POWER OF BUYERS

Large no of customers Product is important to the customer Low buyer`s price sensitivity Buyers require special customization MEDIUM

16/17

BCG MATRIX(growth-share)
Stars-Equities Question Marks-IPO Underwriting,M&A, Fixed Income,Algorithmic Trading Cash Cows-Investment Banking, Mutual Funds, Market Making Dogs-Open out cry trading in NYMEX,COMEX,CME
17/17