Swot- Wells Fargo

Topics: Wells Fargo, Wachovia, Bank Pages: 3 (576 words) Published: October 26, 2011
Wells Fargo SWOT Analysis, IFE, & EFE Matrix

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)

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

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
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