Strategic Plan for Bank of America By L.Ray
Executive Summary 19.6 million online customers Over 5000 branch locations Acquisition of MBNA
Merger June 30, 2005 Purchased MBNA for $35 billion in cash and stock Merger closed on January 1, 2006 Now the largest issuer of credit cards in the U.S. Surpasses J.P. Morgan Chase
Strengths Strong cash position Long standing name New acquisition Over 5700 brick and mortar locations Convenient banking available Investment opportunities
Weaknesses Increasing Overhead expenses Online lending Mortgage have gained more than 70% of the mortgage origination market over the past decade.
Industry Environment-Competitive Rivalry New entrants Buyers Suppliers Substitutes Industry competitors
New Competitors Car Manufacturers Insurance Companies Retailers Internet Based Companies Supermarkets
Long Term Objectives Increase Market share Increase customer base Increase profitability Reduce Overhead Reduce service fees
Critical Success Factors Effective Communication Maintain customer loyalty Internet banking education New advertising Constant customer service monitoring
The strategy being implemented will enable Bank of America to enhance its revenue, and aid in becoming the number one bank in the United States.