Strategic Analysis: AFI Paper 4 - SWOT Analysis of Chase Bank

This assignment, submitted by a student to Desklib, provides a comprehensive SWOT analysis of Chase Bank, leveraging insights from previous AFI papers. The analysis identifies Chase Bank's strengths, such as its established presence and large asset base, while also pinpointing weaknesses like past scandals and IT infrastructure limitations. Opportunities, including growth in asset management and emerging economies, are examined alongside threats from competitors and economic downturns. The paper offers strategic recommendations, including digitalizing operations and expanding into emerging markets to enhance competitiveness. The analysis is based on the banking industry and focuses on Chase Bank's internal resources, capabilities, and sustainable competitive advantage.

Answer to AFI Paper 4
AFI Paper 4: SWOT Analysis
[Use the same firm/industry for AFI Paper 4 that you used in your earlier AFI Papers 1, 2 & 3
Since your analyses for this paper should heavily rely on and refer to things examined in your
previous three papers, please append the text from your first three submissions to the end of this
paper]
Using, and referring to, the information from the first three AFI papers create a SWOT analysis
focusing on your focal firm
SWOT Analysis of Chase Bank
Strength
 Chase Bank is one of the oldest banks
in the US and among the top banks in
the country (Smith, 2020). It is formed
by merges of many banks.
Trustworthiness of the bank is very
high.
 Total asset of the bank is over $ 2.6
trillion, indicating the amount
business the banks deals with.
 The parent company of the bank is J.P.
Morgan and thus it is clear that the
bank has huge support.
Weakness
 Chase bank has been involved in
various scandals and these have
tarnished the reputation of the banks.
 The bank has investments in Enrron
and thus with the failure of Enron,
Chase Bank suffered a lot because it
made loss worth $ 2 billion.
 The customers faced trust issues
regarding transactions with Chase
Bank.
 The trust issues occurred among the
customers was due to overcharging of

 There are nearly 0.2 million
employees working in the bank.
 The bank operates in over 100
countries all around the bank.
 The bank has over 5000 branches in
the US and 16000 ATMs that helps to
satisfy the customer’s need of the
bank.
 The company values its customers as
well as employees
 The bank deals in various kind of
products and operates in various
countries and thereby the risk of
failure of the bank is low due to
diversification.
interest rate for mortgages of the
military personnel that have taken loan
from the bank (Doyran, 2017).
 The IT infrastructure of the bank is not
good and thus the bank is not well
equipped with technological facilities.
 Due to failure in the IT infrastructure
of the banks, the agreement with IBM
was cancelled and thus many
employees were put under the payroll
of IBM causing dissatisfaction among
the employees.
Opportunity
 Chase Banks deals in various form of
banking products and asset is one of
them. The growth of asset
management of market is a boon for
Chase bank.
 The asset management industry in
2020 will touch the mark of $ 102
Threat
 Chase bank is not the only bank in the
US. Bank of America is one of the
biggest rival of Chase bank.
 Threat from foreign competitors are
also significant. The notable foreign
competitors are HSBC, Barclays and
Citi Bank. All these banks operates in

trillion. The CAGR of the market will
be around 6%.
 Investment in the asset management
would earn significant amount of
revenue (Singh, 2017).
 The credit card market is also
growing. It has been observed that the
credit card market is growing in the
US. Chase bank operates in the market
of credit card. The name of Chase
bank credit card is Chase card (Al-
Najjar & Malik, 2017).
 The growing economy of the world
especially due to the emerging
economies the bank has the
opportunity to expand its operation in
these countries.
 The merger of the bank with Bank
One, a major bank in the Middle East
provided Chase bank the opportunity
of expanding in the Middle East.
other countries like Chase Bank. Thus,
the competition threat is global.
 Like the financial crisis that occurred
in 2008 – 2009 are threat to financial
institutions and Chase bank is no
exception. Any future crisis or
recession in the economy would
hamper the business of the bank
(Huynh, 2016).
 The entry of different types of
financial service providing companies
which are not banks imposing threat
by providing various kind of financial
services. One of the major companies
is Gpay.
Recommendation and Action Plan: Now that you have looked at the external environment and
compared it to your internal resources and capabilities what are your recommendations? Using

course concepts describe what steps you would recommend to achieve or maintain competitive
advantage?
Chase Bank has always been the one of the major banks in the US. It earns a large amount of
revenue each year. However, considering the SWOT analysis it can be said that there are areas in
which the bank needs to look after and make necessary changes.
Recommendation#1- The bank needs to digitalize its operations especially the ones that are
customer centric such that there service get improved. With better service offerings, the bank
will be able to attract more customers. In addition to that, the bank need to lower its investment
in risky areas like it did in the case of Ennron. Therefore, it is recommended that the bank should
improve its IT infrastructure to better its digital; services and secondly, lower risky investment
such that its trustworthiness increases.
Recommendation#2- Emerging economies around the world are growing at a fast pace and the
market in these economies have the highest potential. Keeping in mind the market of these
countries it is recommended that the bank should expand its business in the emerging economies
either by merger and acquisition or by completely opening its own entity.

Reference
Al-Najjar, N., & Malik, A. (2017). The US Credit Card Industry. Kellogg School of
Management Cases.
Doyran, M. A. (2017). How Goldman Sachs Turned the Great Recession into Competitive
Advantage Using Strategic Management. Rutgers Business Review, 2(3), 357-376.
Huynh, T. (2016). ItsPayd_Financial Technology.
Singh, A. P. (2017). Merge or Acquire-A Strategic Framework. Annals of the University
Dunarea de Jos of Galati: Fascicle: XVII, Medicine, (3).
Smith, A. D. (2020). Wells Fargo and Trust Issues: Impact on Financial Banking.