JPMorgan Chase Inc. Situation Analysis
JPMorgan Chase is the largest bank by market capitalization, which is estimated at $453.5 billion. The company is long the top 3 trusted banks in the U.S. and has a market experience of 2 decades. And they provide the best services to their customers. The branches of this company are in more than 100 countries. A SWOT analysis has been done to identify the company’s strengths and weaknesses so that its growth and development are facilitated (Assibey-Yeboah 2019).
Industry structure and economic feature
The model for impact at JPMorgan Chase focuses on the four strategic drivers of inclusive growth and reflects on the essential ingredients needed to create lasting impact for customers, communities, employees, and customers. This model is put into action through significant, data-driven, and long-term investments in communities across the globe (Chapman 2020).
JPMorgan reorganized businesses for making them more stable and profitable and gaining control of it. He reorganized railroads and became a powerful railroad magnate. Industrial consolidations were also forced by him, resulting in the formation of U.S. Steel, General Electric, and International Harvester (Ding et al. 2021).
JPMorgan Chase Strategic
Business Level Strategies
The company has 4,800 branches spread across its territory. One of the strategies is creating channel experiences to meet customers when and where they want. This enables Chase to serve more households in comparison to other banks’ branches and helps to achieve customer satisfaction. One specialized format is "community centres" at Chase that are being designed for underserved urban communities. The bank staffs them differently, which includes specialists in home lending advice, business mentorship, and community managers trained in outreach. Twelve are being opened by year's end in 2021, and five were slated to open in 2022 (Ding et al. 2021).
Corporate Level Strategies
Referral business as well as building broader relationships with the branch has been strong parts of what Chase has always wanted. Nearly 9 out of 10 new investment customers come from internal referrals, whereas 75% of new small business customers start as consumer customers. Additionally, half of consumer mortgage originations initiates in the branch of the bank (Elgin, Chase and JPMorgan 2020).
Competitive Analysis and Advantages in the Industry
The employees of JP Morgan are are entitled to a variety of healthcare insurance plans, that ranges from vision, medical, and vision, to disability, life and accident and before-tax.
SWOT Analysis
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Strengths
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The strength of JP Morgan includes the positive points of a company which will help to get the market’s hod. The company must evaluate, and see the improvement that can be down by them for getting a better hold of the markets. The company has a good reputation with a strong brand name and financial base that will help to expand the business n different markets. The company has branches in more than 100 different countries, and over 200,000 employees are working for it, which helps in managing as well as evolving the business and making it successful. With experience that is more than 2 decades, the company is providing customers with the best services in the market and this helps them in strengthening their bond with customers. JP Morgan is known for its commitment to CSR strategies. In 2019, the company invested $324.5 million in business ventures and global charities, intending to contribute $1.75 billion by 2023 (Elgin, Chase and JPMorgan 2020).
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Weaknesses
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The weakness of the company is that, although it has branches in 100 countries, it is dependent on UD activities. This overreliance on the US dollar is a weakness. If this market experiences a crisis, the effects on the bank will be enormous. Next, the company has had limited success in its current business. There is a lack of management, and the UK Financial Services Authority (FSA) has penalized the bank with $33.32 million for failing to secure billions of pounds in funds for the CT, which must be taken care of in the future. Apart from this technical failure, there is another weakness. The online banking system has a security flaw that allows users to gain access to account information (Elgin, Chase and JPMorgan 2020).
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Threats
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The threats to the company are changing policies, competitors, and financial crises. The government can change its policies anytime; thus, the public must be aware of these changes. With time, new companies are established in the market, and this might create tough competition, so the company also needs to be aware of this factor. The company can face a financial crisis in the future so avoiding a proper financial study important for its company for keeping separate provisions in such times (Elgin, Chase and JPMorgan 2020).
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Opportunity
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Expansion is an opportunity for JP Morgan since the company will catch hold of more of the market which will help in financial stability. The company needs to provide new services to its customers (Elgin, Chase and JPMorgan 2020).
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PESTLE Analysis
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Political Factors
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The political factors affecting the company include Political stability and the importance of the Money Centre Banks sector in the country's economy, risk of military invasion, Level of corruption - especially levels of regulation in the Financial sector, Bureaucracy, and interference in the Money Centre Banks industry by government, the legal framework for contract enforcement, Intellectual property protection, Trade regulations and tariffs related to financial Favoured trading partners, Anti-trust laws related to Money Centre Banks Pricing regulations: Are there any pricing regulatory mechanisms for financial taxation—tax rates and incentives, Wage legislation: minimum wage and overtime; work week regulations in money centre banks; Mandatory employee benefits, Industrial safety regulations in the financial sector and product labelling and other requirements in money centre banks (Gjekaj 2022).
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Economic Factors
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The economic factors include the following: demographics and skill level of the population; class structure; education level as well as education standard in JPMorgan Chase & Co.’s industry (Maiorescu-Murphy and Maiorescu-Murphy 2020).
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Social Factors
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Hierarchy and power structure in the society; entrepreneurial spirit and broader nature of the society; and culture (gender roles, social conventions, etc.). Some societies encourage entrepreneurship while others don’t base on attitudes (health, environmental consciousness, etc.) and leisure interests (Pagitsas 2022).
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Technological Factors
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The technological factors include recent technological developments by JPMorgan Chase & Co. competitors, Technology's impact on product offering, Impact on cost structure in the Money Centre Banks industry, Impact on value chain structure in the financial sector, and Rate of technological diffusion (Pagitsas 2022).
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Environmental Factors
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The environmental factors are Weather, Climate change, Laws that regulate environmental pollution, Air and water pollution regulations in the Money Centre Banks industry, Recycling, Waste management in the Financial sector, attitudes toward "green" or ecological products, endangered species, and attitudes toward and support for renewable energy (Zeissler and Metrick 2019).
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Legal Factors
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The legal factors include Anti-trust law in the Money Centre Banks industry and overall in the country, Discrimination law, Copyright, patents / Intellectual property law, Consumer protection and e-commerce, Employment law, health and safety law, and data protection (Zeissler and Metrick 2019).
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Target market analysis of JPMorgan Chase
Demographic Characteristics of the Market
The high population growth, as well as the rising young population, is favourite indicators (Pagitsas 2022).
Demographic Characteristics of the Market
The company must investigate the host country's attitude toward migration because a positive attitude toward welcoming immigrants from various cultural backgrounds highlights the importance of implementing effective diversity management practices. Thus, the company must adapt its marketing strategies to ensure diversity and inclusion (Pellegrin 2021).
Psychological Characteristics of the Market
The ability to think conceptually, exude a sense of optimism, exhibit tough skin, and accept associated leadership risks (Sierra Muñoz et al. 2021).
Behaviours of the Target Market
Marketing the benefits of banking and developing trust with customers to increase their number (Sierra Muñoz et al. 2021).
Strategies Appealing to Market
Standard market research and a strategic marketing plan
Marketing mix of JPMorgan Chase
Product Strategy (Product Mix)
The product strategy is combining its business as well as policy expertise, capital, and data to advance four opportunity pillars: small business expansion, jobs and skills, financial health, and neighbourhood revitalization (Sierra Muñoz et al. 2021).
Pricing Strategy
The company has adopted a competitive pricing policy (Sierra Muñoz et al. 2021).
Promotional/Advertising Plan
The main marketing is done through client relations.
JPMorgan Chase Competitive Analysis
Competitive analysis is done through the 4 Ps:
Product
JP Morgan Chase provides financial services and investment banking to customers, small businesses, and some government and corporate clients. The businesses using the JP Morgan Chase brand are investment banking, institutional asset management, investment management, Treasury Services, private banking, markets and investor services, and wealth management and brokerage (Zeissler and Metrick 2019).
Price
The company follows an interest rate and a competitive strategy that is low.
Place
The bank has around 15,500 ATMs and 5,300 branches. It has other channels like mobile, online, and telephone banking. Customers can create accounts and have access to all their savings balances, loans, credit card information, and other information in online mode.
Promotion
Client relations are the main marketing strategy. The bank has very good relations with its clients, and it tries to take care of the client’s financial needs (Sierra Muñoz et al. 2021).
Strengths’ comparisons with competitors
The company has branches in more than 100 different countries, and over 200,000 employees are working for it, which helps in managing as well as evolving the business and making it successful. With experience that is more than 2 decades, the company is providing customers with the best services in the market and this helps them in strengthening their bond with customers (Pagitsas 2022).
Weaknesses’ comparison with competitors
There is a lack of management, and the UK Financial Services Authority (FSA) has penalized the bank $33.32 million for failing to secure billions of pounds in client funds, which must be taken care of in the future. Apart from this technical failure, there is another weakness (Sierra Muñoz et al. 2021).
An organization’s competitive advantage
The organization understands the necessity of customer satisfaction and is willing to make continuous improvements. In terms of customer loyalty, the company's customer satisfaction scores are among the highest in the country (Pagitsas 2022).
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