Banking in New York City and London is described as benefiting from clustering a

Question

Banking in New York City and London is described as benefiting from clustering although one might think that the close proximity would increase competition and drive down prices. Explain one way that clustering might benefit the banking industry. Note: Your answer must be drawn from your own knowledge or research of the banking industry since the article does not explain this.

Explain why Michael Porter might think that “location should no longer be a source of competitive advantage in an era of global competition, rapid transport and high-speed telecommunications”?

Explanation / Answer

Answer

Clustering of banking activities will bring about several benefits, as we can get all the services at single place and all the banking services will be provided to several customers in spur of movement. Following are the benefits they can get while clustering at single location:

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