Preview

Investment Banking - Swot Analysis

Satisfactory Essays
Open Document
Open Document
594 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Investment Banking - Swot Analysis
SWOT ANLYSIS – INVESTMENT BANKING INDUSTRY
STRENGTHS
* Strong management can help Investment banking industry in us reach its potential by utilizing strengths and eliminating weaknesses… …"Strong Management (Investment Banking Industry In Us)" has a significant impact, so an analyst should put more weight into it. "Strong Management (Investment Banking Industry in Us)" will have a long-term positive impact on the entity, which adds to its value. * Lower costs lead to higher profits for Investment banking industry in us. A low cost leader can undercut rivals on price… … * Economies of scale are the cost advantages that Investment banking industry in us obtains due to size. The greater the volume, the greater the advantages * Unique products help distinguish Investment banking industry in us from competitors. Investment banking industry in us can charge higher prices for their products, because consumers can’t get those products elsewhere * A strong brand name is a major strength of Investment banking industry in us. This gives Investment banking industry in us the ability to charge higher prices for their products because consumers place additional value in the brand * Superior technology allows Investment banking industry in us to better meet the needs of their customers in ways that competitors can’t imitate
WEAKNESS
* A lack of proprietary technology and patents can hurt Investment banking industry in us’s ability to compete against rivals * A high debt burden increases the risk that Investment banking industry in us goes bankrupt if they make a poor business decision. Increasing risks can increase Investment banking industry in us’s debt interest payments * A weak cost structure means Investment banking industry in us’s costs are high in comparison to their competitors * A lack of scale means Investment banking industry in us’s cost per unit of output is very high. Increasing volume, while maintain quality, would help

You May Also Find These Documents Helpful

  • Good Essays

    Per Marketline (2013) with its strong market position, Bank of America is well positioned to harness the growing potential of the US banking sector with its retail footprint covering approximately 80% of the US population. This is an opportunity for Bank of America to grow its banking sector in the US. Bank of America will need to build on its strengths such as its favorable business mix diversification and strong capital adequacy to cushion insolvency risks. As per Marketline (2013) favorable business mix is helping the company to serve a large customer base. In knowing the threat of weak economic growth and intense competition, Bank of America can work on measures to thwart these identified…

    • 511 Words
    • 3 Pages
    Good Essays
  • Better Essays

    ECO 550 Final Exam Answers

    • 32965 Words
    • 170 Pages

    In a study of banking by asset size over time, we can find which asset sizes are tending to become more prominent. The size that is becoming more predominant is presumed to be least cost. This is called:…

    • 32965 Words
    • 170 Pages
    Better Essays
  • Satisfactory Essays

    References: 1. Business Wire. THE FREE LIBRARY BY FARLEX. 2009. http://www.thefreelibrary.com/Fitch+Comments+on+Citibankgroup 's+Strategic+Shift%3A+A+New+Citibankcorp+Emerges.-a0192398748 (Accessed 14 July 2009)…

    • 5813 Words
    • 24 Pages
    Satisfactory Essays
  • Good Essays

    Agency costs of financial distress are different from agency benefits of leverage because even though equity holders may benefit at the expense of debt holders’ from these negative NPV actions taken in times of distress, debt holders recognize this move and pay less for the debt when it is first issued, reducing the amount the firm can dole out to shareholders. The net result is a reduction in the initial share price of the firm corresponding to the negative NPV of the actions. Ultimately, it is the shareholders of the firm who swallow these agency costs. Agency costs represent an additional cost of growing the firm’s leverage that will affect the firm’s optimal capital structure choice. The costs increase…

    • 464 Words
    • 2 Pages
    Good Essays
  • Powerful Essays

    in the banking industry. Using a sample of 477 large mergers from 1980 to 1994, we ®nd…

    • 5499 Words
    • 22 Pages
    Powerful Essays
  • Good Essays

    owhere is innovation more essential to survival than in the banking industry. In the payments domain, for example, nonbank competitors less constrained by bank regulations and therefore more agile are changing the banking industry’s grip on the public perception of banks as the only trusted brand for holding and moving money. However, innovation is challenging for banks. Many products, like payments, are a commodity. A vast number of products and a complex infrastructure require continual upgrades to keep apace with technology advancements and comply with evolving regulations and security requirements. This article describes how Bank of America fosters a culture of innovation. Pivotal to an innovative culture is the direct engagement of clients in the innovation process. We highlight some of the ways that Bank of America achieves this. But first we’ll look at the role of innovation process in building brand loyalty.…

    • 2981 Words
    • 12 Pages
    Good Essays
  • Powerful Essays

    The financial services industry is one of the most widespread and established industries in the global economy. All companies who have sales from the management of money for either individuals or institutions are included under this umbrella. In the United States alone, according to the Census Bureau 2007 industry report, it included 503,156 establishments, had approximately 6.6 million employees, and had revenues of 3.6 billion dollars. Financial services used to be a safe haven for conservative investors who thought the stocks provided higher than normal dividend yield, stable performance and revenues and some defense against volatility. Within the last decade however, the collapse of global financial economy due to the subprime market and derivatives market falling apart has led to more careful involvement in this industry. Moreover, greater regulation in both the U.S. and overseas has led to more controlled administration of many companies in this industry.…

    • 2184 Words
    • 9 Pages
    Powerful Essays
  • Powerful Essays

    What Is Strategy

    • 10771 Words
    • 44 Pages

    Harvard Business Review; Nov/Dec96, Vol. 74 Issue 6, p61-78, 18p, 1 Black and White Photograph, 3 Diagrams, 1 Graph…

    • 10771 Words
    • 44 Pages
    Powerful Essays
  • Best Essays

    Investment banking is a term assigned to the marketplace of buying and selling securities, underwriting, mergers and acquisitions, market making, foreign exchange, and buy-side and sell-side transactions. Investment banks are a financial institution that assists individuals, corporations, and governments in raising capital using various techniques on the buy and sell-side of the market. As of Oct. 11, 2008, towards the end of the recession, banking revenues within the United States make up 15% of the nation’s overall GDP. The total revenues of the ten largest investment banks total $495.371 billion. It should also be noted that the investment banking sector accounts for an almost 30% share of all profits made by US corporations.…

    • 2156 Words
    • 9 Pages
    Best Essays
  • Better Essays

    Bear Stearns Case Study

    • 2463 Words
    • 7 Pages

    According to Stowell (2008), moved very fast to create constructive culture that enabled it to attain good and profitable reputation in the New York investment Banking. Other established firms in the investment banking industry that worked for some of the world’s rich companies and received a lot of revenue from advisory services and equity underwriting did not see the essence of creating good…

    • 2463 Words
    • 7 Pages
    Better Essays
  • Satisfactory Essays

    Case Discussion Questions

    • 657 Words
    • 2 Pages

    5. How much of the industry-wide crisis stemmed from investment banks’ financials and current economic climate as opposed to investor…

    • 657 Words
    • 2 Pages
    Satisfactory Essays
  • Powerful Essays

    Centuries have passed since ‘Investment Banking ' was first introduced to the world 's financial system. The fascination of making profit through newly created financial innovations, rather than basically depositing money in commercial banks in hope that the interest rate would not be reduced is truly a smokescreen.…

    • 2382 Words
    • 7 Pages
    Powerful Essays
  • Powerful Essays

    SWOT analysis is done for a company, to find out its overall Strengths, Weaknesses, Threats and opportunities leading to gauging the competitive potential of the company.…

    • 1189 Words
    • 5 Pages
    Powerful Essays
  • Powerful Essays

    Banco de Oro Swot Analysis

    • 3697 Words
    • 15 Pages

    Competition among the banks in the Philippines remain stiff even if there were notably less players resulting from the mergers and…

    • 3697 Words
    • 15 Pages
    Powerful Essays
  • Powerful Essays

    Harold, B. & Jeff, L. (1995): ‘Don’t Let Technology Pass You By’, ABA Banking Journal, Box 986, Omaha, NE, p.73 Irechukwu, G., (2000)’…

    • 6433 Words
    • 26 Pages
    Powerful Essays