Wells Fargo SWOT Analysis
“SWOT is an acronym for the internal Strengths and Weaknesses of a firm and
the environmental Opportunities and Threats facing that firm. SWOT analysis is a widely
used technique through which managers create a quick overview of a company’s
strategic situation. The technique is based on the assumption that an effective strategy
derives from a sound “fit” between a firm’s internal resources (strengths and
weaknesses) and its external situation (opportunities and threats). A good fit maximizes
a firm’s strengths and opportunities and minimizes its weaknesses and threats.
Accurately applied, this simple assumption has powerful implications for the design of a
successful strategy.”
Wells Fargo
Wells Fargo & Company (Wells Fargo) is a diversified financial holding
company, providing retail, commercial and corporate banking services through
banking stores located in 24 states of the US. Wells Fargo is a US based
diversified financial services company offering banking, insurance, investments,
mortgage and consumer finance through its sales and distribution network across
North America. The company leverages its wide distribution network to gain
strong market position. Cross selling also gives the company—as an
aggregator—a significant cost advantage over few products or single channel
companies. However, ongoing consolidation in the US financial services industry
can create bigger rivals with even more diversified businesses, increasing
competition in the market.
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Wells Fargo SWOT Analysis
Strengths, Weaknesses, Opportunities and Threats (SWOT)
Location of Factor
TYPE OF FACTOR
Favorable
Internal
Strengths
Weaknesses
¾ Wide distribution
network
¾ Weakening asset
quality amidst high
¾ Cross selling
real estate
¾ Diversified earnings
exposure
distribution across
segments
External
Unfavorable
¾ Limited international
presence
¾ Strong Credit
¾ Low customer
discipline
satisfaction
Opportunities
¾ Technology enabled
offerings
¾ Growing immigrant
population
¾ Growth in the
commercial banking
industry
¾ Acquisitions
Threats
¾ Consolidation in the
US banking industry
¾ Regulations on
contingent
commission
¾ Rising incidents of
Online Scams
¾ Meltdown in US
Asset backed
Securities market
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