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Strength

JPMorgan Chase & Co. is one of the largest and oldest financial institutions in the United States, with $1.2 trillion in assets and over 206,000 employees. It operates banking and non-banking subsidiaries both domestically and internationally, in over 60 countries. While JPMorgan Chase has a strong reputation and significant market share, it also faces weaknesses such as overdependence on the US market and decreased productivity following job cuts from mergers and outsourcing agreements. Opportunities for growth include expanding products and services through mergers and partnerships, but the company also faces threats from competitors, potential loss of employees or customers, and increased regulation.

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207 views2 pages

Strength

JPMorgan Chase & Co. is one of the largest and oldest financial institutions in the United States, with $1.2 trillion in assets and over 206,000 employees. It operates banking and non-banking subsidiaries both domestically and internationally, in over 60 countries. While JPMorgan Chase has a strong reputation and significant market share, it also faces weaknesses such as overdependence on the US market and decreased productivity following job cuts from mergers and outsourcing agreements. Opportunities for growth include expanding products and services through mergers and partnerships, but the company also faces threats from competitors, potential loss of employees or customers, and increased regulation.

Uploaded by

SriSaraswathy
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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Strength

JPMorgan Chase & Co. is one of the most successful business service firms in the
United States. It is Business Company with $ 1.2 trillion in assets and about $ 106
billion is shareholders equity which shows its strength as a financial institution.
JPMorgan Chase & Co. is one of the oldest service firms in the world and operates both
banking and non-banking subsidiaries.
With revenues of $ 56.9 billion in the US and 206000 employee pools, makes JPMorgan
Chase & Co. a leader in business services providing firm in the US. It is said to be the
top 3 largest banking institution in the United States.
JPMorgan Chase & Co. operates on the national as well as international level.
Therefore, its market share is not restricted to one region or country. The company
operates in over 60 countries worldwide and still able to meet the objectives and the
need of the clients effectively.
JPMorgan Chase & Co. has a superior reputation; their knowledge to attract and keep
its personnel and their attractiveness of their products to their customers adds to its
strength greatly.
JPMorgan Chase & Co. signed a $ 5 billion outsourcing agreement with IBM. It also
formed a merger with Bank One Corp. to encourage self-sufficiency and cost reduction
by employing a do-it-yourself approach.
Weakness
The IT infrastructure of JPMorgan Chase & Co. was not sufficient in maintaining their
systems in their business operations
The cancellation of outsourcing agreement with IBM resulted in transferring of
employees to IBM’s payroll, in employee anger and loss of productiveness of the
company.
New consultant had to be brought in the company to assist in implementing the
outsourcing strategy and in serving employees finished the transformation which
caused additional expenses incurred by the company.
There was seen a decrease in productiveness due to heavier workload for existing
employees. Employees lost their jobs on the restructuring back into JPMorgan Chase
& Co. The merger with the Bank One created 12000 layoffs.
Furthermore, it can be added the JPMorgan Chase & Co. has overdependence on the
USA market. This tendency of the company has resulted in lack of expansion of
business and diversification.
Opportunities
The outsourcing agreement that the company undertakes from time to time could make
it more competent by resulting in cost reduction and increased quality. The agreement
with IBM and other lending companies would create a significant value for clients,
employees and shareholders.
The merger with Bank One led to the accomplishment of large retail banking presence.
Therefore, helps in increased capacity to manage large business infrastructure. The
expansion of its products and services could also create opportunities for the company
with the diversifying portfolios for consumers.

Threats
The company faces threats from number of competitors because of operation in over
6o countries, both globally and regionally. The fact that companies like IBM could
supply its services for numerous companies of the size of JPMorgan Chase & Co. and
hence, increase their competitiveness.
Employee having to do additional work, having salary reductions and re-application
process for their jobs could cause them to be de-motivated and retrograde productivity.
The possibility of new born firms entering into the business affects competition, not
only a firm’s present rivals pose a threat to the business alone.
A danger of substitutes exists that the JPMorgan Chase customers might find less
expensive and hence, their products demand is affected by the price change of a
substitute products.
Apart from the business operating threats, the increased regulatory pressures on
interchange rates as well as consolidation in financial services industry also poses major
degree of threats to JPMorgan Chase & Co.

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