Bank of America Corp. SWOT Analysis

Strengths

The Bank Of America Corp dominates the market in the US and uses its different strengths to gain competitive advantage over its competitors and peers. It has a Strong position in the market.

Bank Of America Corp is available in about 32 states in the US, the District of river and more than 30 foreign countries. In the US, it has more than 6,149 banking centres, more than 18,753 ATMs and matchless e-banking services.

Bank of America claims to be ranked number one Small Business Administration lender in the US in 2007 and has relationships with 99% of the US Fortune 500 Companies and 83% of the Fortune Global 500. It also claims to be largest online US bank with more than 24 million online banking customers in 2007. It was also the second largest retail bank in the concern in 2007 with revenues of $ 55,605 m from its retail banking business.

Strong equilibrate sheet has made it possible for the bank to take forward its expansion plans. It had an asset filler of $ 1,716 bn in 2007, an increase of 17.5% over 2006. In addition, during 2003–2007 its asset filler increased at CAGR of 23.6%. Its shareholders equity grew at an awesome CAGR of 32.3%. These figures reflect its capability and strength of managing the capital efficiently.

Bank Of America Corp has a diverse range of product; banking as well as non-banking ones. The innovations and value that it provides with its services, is its strength in attracting clients.

Weaknesses

There are complex process and banking operations that it employs and can be called its weakness.

Even in sectors and areas where the company is not so large it claims to be competitive but has no effective strategy to prove it.

The Bank Of America Corp total gain welfare edge has been declining since 2003. Although its gain welfare income was estimated to be around $20,505 m in 2003, it declined to $34,433 m in 2007. This means that its gain welfare edge decreased greatly 3.26% in 2003 to 2.6% in 2007.

The main reason for this decrease is the impact of complex processes having low-yield, trading-related balances and widespread compression. In addition, the funding of the LaSalle integration also impacted the gain welfare edge in 2007. Though its financial performance in the last few years has been impressive, a further decline in gain welfare edge may adversely impact its forthcoming profitability.

Opportunities

Bank Of America Corp can now easily expand and enter international markets. There are constant improvement and up gradation of processes in the banking industry which is an opportunity for the company.