Swot Analysis of Citibank

Advanced Strategic Management - BA 512

Assignment: SWOT ANALYSIS OF Citibank

Student Name: Shreekar Basrur

Citigroup is one of the world's largest financial services company, with an asset base of more than$2 trillion at the end of 2007 and an extensive network of global operations. It operates a network of 8,527 branches, approximately 20,000 ATMs, and 530 automated lending machines (ALMs).Citigroup has more than 200 million customer accounts and does business in more than 100 countries. Strong market position and brand name provides the group with a competitive advantage and enables it to tap opportunities across various geographic markets. However, Citigroup is vulnerable to the credit crunch and difficult mortgage market in the US. (Source: Wikipedia. N, 2010)

STRENGTHS: (Internal)

* Bank of America is the biggest bank holding corporation in the U.S. by belongings, and the second biggest bank company by market capitalization. (Compare Infobase Ltd, 2011)

* Bank of America is a part of both DJIA and S&P 500 catalog. (CNBC, 2010)

* Bank of America has a strong global existence. Due to various acquisitions, mergers, and joint ventures the institution has a strong position and presence in domestic market.

* Bank of America has great brand image, advanced customer service and elevated customer satisfaction

* Small Business Banking and Global Consumer is the biggest distribution in the corporation, and the company mainly deals with credit card issuance and consumer banking. (Bank of America, 2012)

* In 2008, it acquired Merrill Lynch and became the globe's largest wealth manager and main company in the investment banking business.

* As of August 2009, Bank of America grasped 12.2 percent of all United States deposits. (Nargis. N, 2011)

* In 2010, Bank of America was considered as fifth largest corporation in the U.S. by total revenue. (Nargis. N, 2011)

* Bank of America is listed as the third largest corporation in the globe by Forbes 2010. (Global Finance. 1987-2011)

* It has expand variety of financial services and products along with strong internet banking presence

* Bank of America is the second prevalent non-oil company in the United States

WEAKNESSES: (Internal)

* Bank of America has clients base over 150 countries but generates 90 percent of its sales in its national market and just 10% internationally. (Wendy. J.B., Bob. B., 2012)

* BOA is criticized by its customers for raising the interest rates.

* The bank has been criticized for allegedly snatching three properties that were not below their ownership or rights, actually because of incorrect addresses on their authorized document (Rothacker.R., Rauch.J., 2011)

* unprofessional conduct of Federal Bailout and management dilemmas result in the walk out of its six directors and formation of a regulatory collision office (Rothacker.R., Rauch.J., 2011)

OPPORTUNITIES: (External)

* Increasing trend towards the internet banking is also a good opportunity to introduce online banking in different countries of the world. (Bank of America, 2012)

* Additional consolidation in the banking sector

* Bank of America has the opportunities to offer pioneering products and services. (Bank of America, 2012)

* access in the domestic markets by acquisitions

* Diversification towards the non-banking services. wealth and trend in the direction of the asset after the financial crises 2007-2010 (Rothacker.R., Rauch.J., 2011)

* Bank of America has opportunity to increase market share by product development and markets

* Increases clients stand by collide with globally through the joint ventures, acquisitions, and mergers (Nargis. N, 2011)

THREATS: (External)

* New regulations and policies may shock financial firm's business forms

* Bank of America has strong competitors in the industry such as JP Morgan Chase, Citigroup and Wells Fargo. (Maxwell. F.,2012)

* Banks are facing serious losses and depressed profits, mainly if the government gets approved away with financial and other improvement efforts. Facing strong competition to sustain its market share. (U.S. Department of State, 2011)

* This industry may be on the restore, but its renewal could be slowed down by heavy-handed regulation and more twinge in the housing market. Face strong political volatility and instruction and tariffs in various countries of the world.

* The playing out of bank's exposure to apprehensive assets.

* The call for constant hard work to improve risk oversight and governance, particularly at the board level. (U.S. Department of State, 2011)

STRATEGY:

Bank of America plans to use this franchise to serve three different customer groups: consumers, businesses and institutional investors. The company believes that this customer focus