Capital One Financial Corporation
“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.”
Capital One Financial Corporation
Capital One Financial Corporation (Capital One or ‘the company’) is a
diversified financial services provider in the US. Since its inception in the 1990s,
Capital One has become one of the leading card issuers. The company has now
shifted focus to diversifying from a monoline card issuer to full fledge financial
services provider. Capital One primarily operates in the US, the UK and Canada.
It is headquartered in McLean, Virginia and employs 23,700 people.
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Capital One Financial Corporation
Strengths, Weaknesses, Opportunities and Threats (SWOT)
Location of Factor
TYPE OF FACTOR
Favorable
Internal
Strengths
Weaknesses
¾ Strong market position
¾ Limited
in credit card business
international
supporting revenue
presence enlarging
accretion
business risk
¾ Innovative products
¾ Negative publicity
and services
in the UK market
augmenting brand
bringing brand
strength
value diminution
¾ Adequate liquidity
External
Unfavorable
¾ Increasing
position lending
provision for loan
strength to balance
losses impacting
sheet
profitability
Opportunities
¾ Acquisition of Chevy
Threats
¾ Identity thefts could
Chase Bank likely to
increase losses
increase market share
and affect the
¾ Participation in the US
treasury department
company’s margins
¾ Economic
capital purchase
slowdown in the US
program (CPP) likely
may affect
to increase
profitability
shareholders returns
¾ Positive outlook of
¾ Volatility in financial
markets likely to
commercial banking in
affect revenues and
the US
increase cost of
capital
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