Michael Porter, Competitive Advantage ( Please see the assignment Coursework

Michael Porter, Competitive Advantage ( Please see the assignment criteria ) - Coursework Example At a certain point of time (during the year 1981) the bank chose to capture the market of wholesale credit. The bank although succeeded in achieving its aim but the achievement of leadership position in this loan segment could not be transformed into competitive advantage. Conversely, this strive towards leadership made the bank grant even those loans which other banks were not granting at that point of time to the borrowers. Thus, the bank got involved in escalation of cost and gradually the bank became ineffective (Porter, 1998). The bank failed to transform its leadership strategy into competitive advantage because the structure of the industry did not support leadership (University of Pennsylvania, 2011). For achieving the competitive position, the bank should have focused on attaining both differentiation as well as cost leadership. Leadership indicated that the bank had to deal with various corporations which are quite large and are sensitive towards prices of the loans. The po or position of the bank made various wholesale operators withdraw their funds from the bank that left the bank in a situation of liquidity disaster.