Morgan Stanley’s Competitive Strategy and Industry Environment: An External and Internal Analysis

Authors

Mikaela S. Waggoner, University of Nebraska-LincolnFollow

First Advisor

Mirzokhidjon Abdurakhmonov

Date of this Version

5-2025

Document Type

Thesis

Citation

Waggoner, Mikaela. Morgan Stanley’s Competitive Strategy and Industry Environment: An External and Internal Analysis. Undergraduate Honors Thesis. University of Nebraska-Lincoln. 2025.

Comments

Copyright Mikaela Waggoner 2025

Abstract

Morgan Stanley is a global financial services firm that trades, manages, and distributes capital for a wide range of clients. Its competitive position is dependent on a number of factors including reputation, quality, and innovation, and the firm is subject to many internal and external factors that affect its competitive position. This work seeks to examine the factors that affect Morgan Stanley’s strategy and competitive position, looking at both historical factors and potential future outcomes. A PESTEL analysis as well as an analysis of Porter’s Five Forces in the financial industry are used to demonstrate the external factors that influence Morgan Stanley. This analysis is followed by an analysis of Morgan Stanley’s current strategy and competitive advantages, considering what qualities will be long-term competitive advantages. These qualities include strong capital and liquidity, high levels of technological investment and innovation, and company acquisitions. Brand reputation and diversified business offerings provide Morgan Stanley a long-term competitive advantage. Looking to the future, the firm should closely watch macroeconomic shifts both locally and globally. It should also continue to invest in artificial intelligence and cybersecurity.