Question

Write essay of SWOT analysis of Bank of America

Answer 1

The SWOT analysis of BANK OF AMERICA IS :

STRENGHTS :

• Large scale of operations : Like other major brands, the majority of strengths come because of the popularity of the brand which again is a result of the scale of operations. The company operates in more than 150 countries.
• Strategically planned acquisitions : Bank of America acquired Merrill Lynch which made it the world’s biggest wealth manager and also got it into main stream investment banking business.
• Businesses that are big and work for the bank: Consumer Banking and credit card issuance are big businesses for the bank.

WEAKNESSES:

• Low income from countries apart from USA: Bank of America generates almost 90% of its income from operations within the Unites States of America and just 10% from all the remaining countries put together.
• The high rates of interest charged: Bank of America charges high rates of interest, which seem unjustified for many people.
• The WikiLeaks scandal of 2010 and 2011 has created a major dent in the brand name of Bank of America.

Opportunities:

• scandals in the USA seems to have tarnishes the image of the brand, expansions outside of the USA, can provide the bank an opportunity to grow and expand.
• innovation: The bank can innovate, and come up with new offers that excites the customers. This will also help it to solidify its position at home.

• technological advancement : with the advancement of technology and internet banking, provides an opportunity to Bank of America to make this technology and it's products available to consumers.

Threats

• Bank of America has many big rivals like Citi Bank, J. P. Morgan and Wells Fargo who pose a danger to the expansion.
• The stringent rules make the environment for the growing of the banks constrained.