Professional Documents
Culture Documents
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 companys strategic situation. The technique is based on the assumption that an effective strategy derives from a sound fit between a firms internal resources (strengths and weaknesses) and its external situation (opportunities and threats). A good fit maximizes a firms strengths and opportunities and minimizes its weaknesses and threats. Accurately applied, this simple assumption has powerful implications for the design of a successful strategy.
Page 1 of 2
Internal
Strengths Leading market position in the US Robust growth in core banking Capital management and dividend policy Product and service innovation
Weaknesses Declining net interest margins Weak wholesale banking operations Sub-optimal geographic asset allocation Deteriorating asset quality
External
Opportunities Credit card operations & affinity marketing Wealth management and consumer banking Acquisition of Countrywide Financial Corporation Hispanic banking
Threats Sub prime exposure Consolidation in financial services industry Increased regulatory pressures on interchange rates Volatility in financial markets
Page 2 of 2