Editing Visa Inc. (section)

== Industry Overview ==
As previously stated, due to the nature of its target market being substantially involved in worldwide commerce, Visa’s position as the largest global digital payment technology company in an indispensable industry both guarantees its future and its success. In this industry the total addressable market is any trade or commerce with non-cash based transactions worldwide of which Visa currently has a market share of roughly 40%. 34% of the available worldwide market is currently dominated by UnionPay International mainly due to their influence in the Chinese market. Although technically “possible”, it would be extremely unlikely and not worth the risk for Visa to invest into the Chinese transactions services market as the investment required would not lead to a guaranteed increase in market share. Alternatively, Visa chooses to strengthen its existing business model in order to claim market share from its main “real” competitor MasterCard (24% market share) as well as smaller competitors such as PayPal and American Express. Visa and Mastercard are by far the largest and cover above 80% of the global market share excluding China, however, Visa shows the highest net income in comparison to its alternative service providers and has done so for multiple years due to its effective infrastructure and electronic network.

Visa’s key strengths over its major competitor MasterCard is that Visa cards offer a few more benefits such as their “Lost or Stolen Card Reporting”, insurance options, “special guest” status at luxury hotels, roadside dispatch and other perks. Visa and Mastercard are both accepted almost anywhere in the world unlike other competitors. Yet Visa is the highest valued out of all of its competitors with the highest net income (generating $14.9b in 2022.) with a return of 15.85% year-to-date (YTD) and 13.94% in the last 12 months. Over the past 10 years, Visa Inc. had an annualised return of 19.09%, outperforming the S&P 500 benchmark which had an annualised return of 10.28%.

'''Porter's Five Forces:'''

'''Threats of New Entrants:''' Visa faces a MODERATE threat of new entrants as there are high barriers to entry, including the high capital requirements needed to establish a payment technology infrastructure. Moreover, the payment technology industry is highly regulated, and new entrants must comply with complex regulatory requirements, which are both costly and time-consuming. Furthermore, the established networks of payment technology companies, Visa, are difficult to develop for new players. The companies have extensive networks of banks, merchants, and consumers, making it difficult for new entrants to establish a foothold in the market. Visa’s strong brand reputation and market share also make it difficult for new players to enter and gain market share.

'''Bargaining Power of Suppliers:''' The bargaining power of suppliers for Visa is LOW. While Visa does rely on suppliers for certain components and services, the number of suppliers is relatively large, and has no significant concentration of power. Therefore, the bargaining power of suppliers is low. Moreover, due to the strong relationships with its suppliers Visa is able to negotiate favourable terms and pricing due to its large scale and market position. Additionally, there are numerous competitors in the payment technology industry, and suppliers can be easily switched to get favourable terms and pricing.

'''Bargaining Power of Buyers:''' The bargaining power of buyers for Visa is HIGH,  as customers have a wide range of choices and can easily switch to another provider if unsatisfied with Visa’s offerings. Many of Visa’s customers are large and powerful institutions with significant purchasing power. These customers can negotiate favourable terms and pricing with Visa or switch to a competitor if unsatisfied with the current arrangement.

'''Threats of Substitutes:''' Mastercard, American Express, PayPal, and other companies, offer similar services to Visa, thus the threats of substitutes is quite high.

'''Industry Rivalry:''' The industry rivalry for Visa is intense, as Visa competitors often use aggressive marketing strategies to gain market share and customer loyalty. As well, the payment solutions market is highly regulated, and there are high entry barriers to new players, resulting in high competition among existing players.