Christopher Beebe
Mr. Mitchell McIntosh
BU407 A
20 September 2015
Strengths: 1. Branding 2. Diverse Products 3. Strong Credit Rating
1. Wells Fargo is the fourth largest bank in the world. The Wells Fargo logo and brand can be seen everywhere because the bank is represented in all 50 states and over 130 countries worldwide. They are extremely philanthropic in the communities where they are represented which is an extremely powerful tool in getting ones brand recognized. Wells Fargo is the sponsor of the PGA Tour event held in Charlotte and they are the main banking sponsor of the MLS. 2. Wells Fargo believes that one product does not fit each potential customer. They offer Community Banking, Loan Services, Investment Services, and a variety of Insurance Services. The idea is to be diversified enough to meet the needs of all prospective customers. Being diversified allows Wells Fargo to cross sell to its customers. 3. In 2007, Wells Fargo had the best credit rating among all US banks. Their credit rating has lowered since the financial crisis following 2007, but Wells Fargo’s rating is still considered much better than the industry standard. This high credit rating allows Wells Fargo to borrow…show more content… Through the acquisition of Wachovia, Wells Fargo found itself with an increasing number of bad loans. The acquisition forced Wells Fargo to take a $25 billion government bailout loan. They repaid the loan rather quickly but are still writing off bad loans at a much higher rate than the majority of the industry. These write offs make Wells Fargo look less attractive to potential investors. 2. Although Wells Fargo’s diverse product line is one of its greatest strengths, it can also be considered one of its greatest weaknesses. They offer “everything under the sun” to their customers, but it seems as if the products being offered may be diluted. Without having a main focus on any of their products, it is hard for Wells Fargo to gain market share on any individual