Bank of America is one of the largest financial services company in the US. It is the largest bank by assets, largest commercial bank by deposits and is the second largest by market capitalization in the United States. In the Porter’s Five Forces Model, Bank of America’s main competitors include JPMorgan Chase, and Wells Fargo. Bank of America does have a lot of key factors working in its favor. The first factor is merely its name. Bank of America’s favor are the high capital requirements and the government policies for the financial industry. Paintings, antiques, gold, and yachts are just a few examples of long-term tangible investments that will tie up dollars that could potentially be deposited by customers and then invested by Bank of America. For Bank of America, the main supplier is the Federal Reserve. Buyers of Bank of America products and services include people from a wide variety of walks of life in the American society. In SWOT analysis, Strengths is leading market position further strengthened by the acquisition of country wide and Merrill lynch. Weakness is Bank of America is too reliant on the domestic market. As a result economic shocks in the domestic market get amplified and affect its revenues and profits negatively. Opportunities is BOA has the top market share position in credit card and unsecured lines of credit in the US and is the number one credit card lender in Europe. Threats is the US government’s intervention has helped to ease the matters yet the mistrust among financial institutions is so high that it would take more than two to three quarters for the markets to return to any semblance of normalcy. As a result, CDO and sub prime exposure likely to be significant threat in terms of asset write-offs and charges. The key success factors will help a company to hone in on their strengths and make a profit. Increasing globalization, Emerging new Internet capabilities, applications, and Innovation are driving forces in the... [continues]
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(2010, 11). Strenghts. StudyMode.com. Retrieved 11, 2010, from http://www.studymode.com/essays/Strenghts-473000.html
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