In the analysis below, the strengths, weaknesses, opportunities and threats of JP Morgan & Chase will be presented. It is important for companies to identify their SWOT in relation to their current business environment. Some strengths would be that JP Morgan has good returns on its capital expenditures. They successfully execute new projects and generate good returns on capital expenditure by creating new revenue streams. They also have a strong distribution network. Over the years, JP Morgan Chase has built a reliable distribution network capable of reaching the majority of its addressable market. As well as a high level of customer satisfaction and reliable suppliers. Say no to plagiarism. Get a tailor-made essay on “Why violent video games should not be banned”? Get an original essay Some of their weaknesses include limited success outside of their core business, integrating companies with different work cultures, gaps in the product line and other items that will be mentioned. Even though JP Morgan Chase is one of the leading organizations in its industry, it has faced challenges in moving to other product segments with its current culture. JP Morgan Chase has been successful in integrating smaller companies, but it has had difficulty merging companies with different work cultures. Next, there are gaps in the range of products sold by the company. This lack of choice can give a new competitor a foothold in the market. The company was unable to meet the challenges presented by new entrants in the segment and lost a small market share in its corner product categories. JP Morgan Chase must establish an internal feedback mechanism directly from the field sales team to address these challenges. They have issues with forecasting product demand, resulting in a higher rate of missed opportunities than their competitors. One of the reasons today's inventories are high compared to competitors is that JP Morgan Chase is not very good at forecasting demand, leading it to hold higher inventories at a time. internally and in the canal. O, Meaning Opportunity describes the point of potential growth in a business. JP Morgan Chase has increased opportunities by reducing the inflation rate through the new tax policy. In 2018, the Trump administration's tax reform allowed JP Morgan Chase to make a profit of $3.7 billion, which it used for promotions, new technologies, building new Chase branches, l increased salaries, donations to non-profit organizations and investments in the communities it serves. . New technology provides JP Morgan Chase with the ability to exercise different pricing tactics. Ultimately helping the company retain loyal customers with excellent service and gain new customers. Openness to adopting new technology standards and the government's free trade agreement provided JP Morgan Chase with the opportunity to enter a potential new market. Market development will lead to dilution of competitors' advantages and allow JP Morgan Chase to increase its competitiveness. New Environmental Policies – This represents a great opportunity for JP Morgan Chase to consolidate its advantage in new technologies and gain market share in the new product category. New trends in consumer behavior can open up a new market for JP Morgan Chase. This offersthe organization a great opportunity to create new revenue streams and also diversify into new product categories. Finally, to identify your threats, it is important to know who the competition is, what market areas pose a potential danger to the business, what trends may negatively impact the business, and is there a product or an innovation in the market that will make your product or innovation obsolete? Things like laws, new technologies, increasingly powerful competitors, and consumer desires could pose a threat to JP Morgan Chase's potential growth. A legal threat includes liability laws, as they might be different in other countries and JP Morgan Chase may be exposed to various liability suits due to the policy change of those markets. Along with different laws and continued fluctuations regarding product standards in these markets, JP Morgan Chase could face legal action. New technologies developed by the competitor or a market disruptor could pose a serious threat to the industry in the medium and long term. The growing strength of local distributors also poses a threat in some markets as competition imposes higher limits on local distributors. As the company operates in many countries, it is exposed to currency fluctuations, particularly given the volatile political climate in several markets around the world. Changing consumer purchasing behavior from online channels could pose a threat to the existing supply chain model based on physical infrastructure. Another way to create a defined strategy and analyze JP Morgan & Chase is to use Porter's Five Forces. Michael Porter is a business strategist, economic theorist, and currently a professor at Harvard Business School. He is well known for creating the Porters Fives Forces business strategy, a tool used to analyze a company's competition. Porter defines a competitor's business strategy as "deliberately choosing a different set of activities to deliver a unique blend of value." This means you need to understand who your competitors are and the market you have decided to compete in, in order to determine how your business should move towards progression. Porter's five forces include supplier power, barriers to entry, threats of substitutes, buyer power, and degree of rivalry. When it comes to supplier power, the two primary suppliers to a bank are depositors, who provide the primary capital resource, and employees, who provide the labor resource. As far as depositors are concerned, the situation is essentially the same as that defined for the bargaining power of consumers. Individual depositors, other than large corporations or wealthy depositors, have relatively little bargaining power but, taken as a group, their bargaining power is considerable. JPMorgan's approach to addressing this market force is, again, to work diligently to attract new clients and to increase the extent to which existing depositors hold funds and access services through JPMorgan. Regarding the bargaining power of labor suppliers, individual suppliers have little bargaining power except for key executives. JPMorgan must address its overall bargaining power by offering attractive salaries and benefits to retain top employees.Barriers to entry are described as the existence of high start-up costs or other obstacles that prevent a new competitor from easily entering an industry, it protects the company's revenue and profits. The threat of new competitors facing tough competition within the industry is relatively low. Any company attempting to compete directly on the same level as JPMorgan or the other major U.S. money banks would face major obstacles. The main obstacles facing potential new entrants are the large investments required, the time required to establish a meaningful brand identity, and the numerous and burdensome government regulations that apply to the operation of banks. However, in the future, JPMorgan and other major banks will likely face increasing competitive threats in the industry from large banks in developing economies like China, which will eventually compete on a more international scale. The threat of substitutes lies in the availability of other products that a customer could purchase outside of an industry. The competitive structure of an industry is threatened when there are substitute products available offering reasonably close benefits at a competitive price. The threat of substitute products has increased in the banking industry as companies outside the industry have begun to offer specialized financial services that were traditionally available only from banks. For example, payment processing and transfer services such as Cash App, PayPal and Apple Pay, prepaid debit cards and online peer-to-peer lenders such as Prosper.com or LendingClub.com. The disruption of these alternative services has cost JPMorgan and other major banks considerable revenue. In response, the company plans, among other things, a division focused on small business lending and the creation of its own digital wallet service, Chase Pay, using Zelle. Buyer bargaining power refers to the pressure that consumers can put on companies to provide higher quality products, better customer service, and lower prices. The overall bargaining power of consumers is an important factor influencing the sector. Individual consumers, particularly in the retail banking market, have relatively little bargaining power since the loss of an account has minimal impact on JPMorgan's financial results. However, overall, the bargaining power of consumers is greater, since the bank cannot afford to suffer mass defections of depositors. Corporations and high-net-worth individuals have relatively greater bargaining power since losing major accounts, and revenue streams can more significantly affect the bank's profitability. JPMorgan addresses the issue of customer bargaining power primarily by offering attractive deals to potential new customers. It also continually works to entice existing customers to open additional accounts and sign up for additional services, which effectively increases switching costs for consumers by making it more difficult for them to transfer their finances to another bank. The intensity of rivalry among competitors in an industry refers to the extent to which companies in an industry put pressure on each other and limit each other's profit potential. If the rivalry is fierce, the competitors try to take advantage of each other.profits and market shares. Competition within the industry is the strongest of Porter's Five Forces for JPMorgan Chase. The company faces intense competition domestically from the other three major money banks, and globally from other large multinational banking companies, such as HSBC and Barclays. One aspect of the industry that heightens the importance of competition is the relatively low switching costs that consumers face, particularly in the areas of retail and commercial banking. Big banks, like major mobile phone companies, are continually expanding their offerings to lure customers away from other banks. JPMorgan manages industry competition in three main ways. It attempts to distinguish itself in the market mainly on the basis of its long and recognized heritage and experience. Its goal is to stay at the forefront of customer convenience and cutting-edge, low-cost services. It has a history of acquiring smaller banks, eliminating any potential competition from the market. Like any company facing significant problems, JP Morgan has faced legal issues and global regulatory pressures. In 2013, Jamie Dimon, CEO of JP Morgan Chase, testified on Capital Hill in Washington about London Whale's trading loss. JPMorgan is accused of wrongdoing in how it marketed mortgage-backed securities, how it tracked delinquent borrowers' credit card payments and whether it should have noticed that Bernie Madoff was running a Giant Ponzi scheme. This led to investigations and lawsuits in addition to a loss of $6 billion. CEO Jamie Dimon said the bank was undergoing “significant changes” to its business practices and that regulatory compliance was its top priority. “Let me be perfectly clear: These problems were our fault, and it is our duty to resolve them,” Dimon wrote in the 2013 annual letter to shareholders. “I actually feel bad about us letting our regulators down. Some observers believe JPMorgan is being unfairly targeted. They say regulators were criticized for laxity before the financial crisis and are now overcorrecting by being too corrective. Authorities question whether the bank had enough control over its business operations and whether it tried to conceal or downplay the scale of the loss. Federal prosecutors are preparing to arrest two employees involved. JPMorgan says it has also received requests for information related to “inquiries and investigations” by Congress, U.S. banking regulators, the U.K. Financial Conduct Authority and others. JPMorgan says it is cooperating. The bank admitted to having made mistakes. It got rid of its senior managers, eliminated bonuses and changed some of its risk management practices. But he rejects any allegations that he tried to hide losses or risks, and he is fighting lawsuits from shareholders who accuse him of that. Globally, regulatory changes are forcing the sell side to reconsider their current activities and business models based on risks. Streamlining assets and balance sheets puts pressure on revenue generation and spending. The search for financing pushes sellers to supplement old sources with new options, seek new counterparties or expand the range of acceptable insurance assets. At the same time, the 2016..