Swot- Wells Fargo
Wells Fargo SWOT Analysis, IFE, & EFE Matrix * STRENGTH 1. Strong national presence and credible reputation (Strong brand) 2. Widely recognized as industry and market share leader (Industry leader) 3. Servicing for more than 25 million customers through over 6000 stores, the Internet, and other distribution channel across North America and elsewhere internationally (Worldwide service) 4. Values its people as its competitive advantage (Strong HR & management team) 5. Values and treats its customer as friends (Loyal customers) 6.
Leading innovator in the use of internet and e-commerce (Online growth) 7. Strong balance sheet and the ability to steer through the pitfalls that plagued its competitors (Strong financial position) * WEAKNESS 1. The Wachovia Bank subprime mortgage problems (Over leveraged financial position) 2. Overcommitted in credit swap (Over leveraged financial position) 3. The reduction of Wells Fargo’s debt rating two levels during January 2009 (Weak capital position) 4. Cut its dividend payment in a move to attempt to solidify its balance sheet (Diseconomies of scale) 5.
Wells Fargo basically did no securities business after merger (Not diversified) 6. Too much focus on consumer/retail banking (Not diversified) 7. Weak International growth * OPPORTUNITIES 1. Increasing its extensiveness through mergers and acquisitions with recently owned Wachovia or with other new bank (M&A opportunities) 2. Growth and success of combined Wachovia and Wells Fargo will be one of the great financial services company (National growth) 3. Move the large national bank with an international presence forward or expansion abroad (International growth) 4.
The disappearance of investment banking and the Wells Fargo’s announcement to significantly expand its security business (Product & service diversification) 5. The use of internet banking and e-commerce (Online growth) * Threats 1. There would be continued downward pressure on housing price (Weak real estate business) 2. Lingering economic recession and changes in the banking industries (Economic slowdown) 3. There will be anticipated duplication of labor and functions (Company’s downsizing) 4. The large national bank have become larger while community banks still exist to satisfy local customer (Intense competition) 5.
The lack of regulation today (External factors/PEST) Wells Fargo IFE Matrix Key Internal Factors| Weighted| Rating| Weighted Score| Strength| | | | 1. Strong brand| 0. 08| 4| 0. 32| 2. Industry leader| 0. 12| 4| 0. 48| 3. Worldwide service| 0. 06| 2| 0. 12| 4. Strong HR & management team| 0. 08| 4| 0. 32| 5. Loyal customer| 0. 10| 4| 0. 40| 6. Online growth| 0. 06| 2| 0. 12| 7. Strong financial position | 0. 11| 3| 0. 33| | | | | Weaknesses| | | | 1. Weak real estate business| 0. 11| 2| 0. 22| 2. Weak capital position| 0. 07| 2| 0. 14| 3. Diseconomies of scale| 0. 08| 3| 0. 24| 4. Not diversified| 0. 07| 2| 0. 14| 5.
Weak international growth| 0. 06| 3| 0. 18| | | | | Total| 1. 00| | 2. 93| Wells Fargo’s EFE Matrix Key External Factors| Weight| Rating| Weighted Score| Opportunities| | | | 1. M&A opportunities | 0. 14| 3| 0. 24| 2. National growth| 0. 09| 3| 0. 36| 3. International growth| 0. 12| 4| 0. 48| 4. Product & service diversification| 0. 12| 4| 0. 48| 5. Online growth| 0. 11| 3| 0. 33| | | | | Threats| | | | 1. Weak real estate business | 0. 08| 1| 0. 08| 2. Economic slowdown| 0. 12| 2| 0. 24| 3. Company’s downsizing| 0. 06| 1| 0. 06| 4. Intense competition| 0. 09| 2| 0. 18| 5. External factors/PEST| 0. 07| 2| 0. 14| | | | | Total| 1. 00| | 2. 42|
