Wells Fargo Ofs Case

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Wells Fargo OFS Case Write-Up
Shi Xu (Nick)

* Wells Fargo Online Financial Services Overview:
* Wells Fargo Online Financial Services provide financial services to its customers via World Wide Web.

* Value Chain:
Capital suppliers | Products/Services | Distribution | End users| Technological Development|
Human Resources|
Risk Management Guidelines|

* Porter’s Five Forces:
* SupplierOverall: Low
* Bank capital supplier: many depositors Low
* CustomerOverall: High
* Buyer information availability: compare online High * Buyer price sensitivity: interest rate High
* Threat of New EntrantsOverall: High
* Federal Reserve: Barrier loweredHigh
* Technology improvements: Low costHigh
* SubstitutesOverall: Low
* ATMs and branch bankinglow
* RivalryOverall: High
* Competition intensified due to a series of M&AHigh

* SWOT Analysis
Strengths:| Weakness| Opportunities:| Threats|
* First-mover advantage * Leader in testing new retail formats * Pioneer in pursuing nontraditional delivery channels * Acquisition of First Interstate| * Over-reliance on financial measures * Having difficulty translating online vision into effective execution| * Proliferation of PCs * Fast growing of the Internet * Deregulation| * Many banks, credit unions, brokerage firms, insurance firms entered the electronic banking market * Undergoing dramatic changes| Conclusion: Not very attractive for commercial banking industry. However with the proliferation of PCs, great opportunity lies in the online banking service. Wells Fargo OFS has first-mover advantage and has adopted the “land rush” strategy to sign up as many customers as quickly as possible. The major challenge Wells Fargo faces is that it needs a set of clearly articulated, objective measures of performance...
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