The following analysis will indicate the strengths, weaknesses, opportunities and threats of JP Morgan & Chase. It is important for companies to identify their SWOT as they navigate the current economic environment. A couple of strong points would be that JP Morgan has good returns on capital expenditure. They successfully execute new projects and generate good returns on capital expenditures 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 most of its potential 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 Shouldn't Be Banned"? Get an original essay Some of their weaknesses include limited success outside their core business, integration of companies with different working cultures, gaps in product range and other things that will be mentioned. Even though JP Morgan Chase is one of the leading organizations in its industry, with its current culture it has faced challenges in moving into other product segments. JP Morgan Chase has been successful in integrating small businesses, however 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 entrant 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 their corner categories. JP Morgan Chase needs to create an internal feedback mechanism directly from the field sales team to counter these challenges. They have problems with forecasting product demand which leads to a higher rate of missed opportunities compared to competitors. One of the reasons why the day's inventory is high compared to that of its competitors is that JP Morgan Chase is not very good at forecasting demand, which leads them to maintain higher inventory both internally and in the channel. Or, Meaning of opportunity describes the point of a company's growth potential. JP Morgan Chase increased opportunities by having a lower inflation rate using the new fiscal policy. In 2018, the Trump administration's tax reform resulted in JP Morgan Chase earning $3.7 billion, which was used for promotions, new technologies, building new Chase branches, raising salaries, donating to nonprofits, and investing in community it serves. The new technology gives JP Morgan Chase the opportunity to exercise different pricing tactics. Ultimately, helping the company retain its loyal customers with great service and acquire new customers. The openness to the adoption of new technological standards and the government free trade agreement have given JP Morgan Chase the opportunity to enter a new potential market. The development of the market will lead to the dilution of competitors' advantages and will allow JP Morgan Chase to increase its competitiveness. New environmental policies – This represents a great opportunity for JP Morgan Chase to consolidate its lead in new technologies and gain market share in the new product category. New trends in consumer behavior may open a new market for JP Morgan Chase. It provides a great opportunity for the organization to create new revenue streams and also diversify into new product categories. Finally, to identify threats it is important to know who the competition is and which market areasdo they represent a potential danger to the company, what trends can negatively affect the business and is there a product or innovation on the market that will make your product or innovation obsolete? Things such as laws, new technologies, the growing strength of competition and consumer desires could pose threats to JP Morgan Chase's potential growth. A threat related to law includes liability laws, as they may be different in other countries and JP Morgan Chase may be exposed to various compensation claims due to changing policies of those markets. Additionally, varying laws and ongoing fluctuations in product standards in those markets could lead JP Morgan Chase to face legal action. New technologies developed by the competitor or market disruptor could pose a serious threat to the industry in the medium to long term. The growing strength of local distributors also poses a threat in some markets as competitors are paying higher caps to local distributors. Because the company operates in numerous countries, it is exposed to currency fluctuations, especially due to the unstable political climate in numerous markets around the world. Changing consumer purchasing behavior from online channels could pose a threat to the current physical infrastructure-based supply chain model. 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 current professor at Harvard Business School. He is known for creating the business strategy, Porters Fives Forces, which is a tool used to analyze a company's competition. Porter defines a competitor's business strategy as “deliberately choosing a diverse set of businesses to deliver a unique mix 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 company should take steps 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, a bank's two main suppliers 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 outlined under consumer bargaining power. Individual depositors, with the exception of large corporations or HNWI depositors, have relatively little bargaining power but, overall, their bargaining power is considerable. JPMorgan's approach to addressing this market force is, once again, to work diligently to attract new customers and 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 beyond key executive employees. JPMorgan must manage its overall bargaining power by offering attractive salary and benefits packages to retain the best employees. Barriers to entry are described as the existence of high startup costs or other obstacles that prevent a new competitor from easily entering a business area, protects the company's revenue and profits. The threat of new entrants who will have tough competition within the industry is relatively small. Any company that attempted to directly compete on the same level as JPMorgan or the other major US banks wouldwould face significant barriers. The main barriers for potential new entrants are the large investments required, the time required to establish a significant brand identity, and the numerous burdensome government regulations that apply to the operation of banks. Going forward, however, JPMorgan and other large banks will likely face growing competitive threats in the sector from major banks in developing economies such as China, which will end up competing on a more international scale. The threat of substitutes is the availability of other products that a customer can purchase outside of an industry. The competitive structure of an industry is threatened when substitute products are available that offer reasonably close benefits at a competitive price. The threat of substitute products has increased in the banking sector, as companies outside the sector have begun to offer specialized financial services that have traditionally only been available at banks. For example, payment processing and transfer services like Cash App, Pay Pal, and Apple Pay, prepaid debit cards, and online peer-to-peer lenders like Prosper.com or LendingClub.com. The disruption of these replacement services cost JPMorgan and other large banks significant revenue. In response, the company has plans that include a division focused on small business lending and creating its own digital wallet service, Chase Pay using Zelle. Bargaining power of buyers refers to the pressure that consumers can exert on businesses to convince them to provide higher quality products, better customer service and lower prices. The overall bargaining power of consumers is an important factor influencing the industry. Individual consumers, especially in the retail banking market, have relatively little bargaining power as the loss of any one account has little impact on JPMorgan's profits. However, overall, the bargaining power of consumers is greater, as the bank cannot afford to suffer mass defections of depositors. Corporate and high-net-worth individual customers have relatively greater bargaining power as the loss of sizable accounts and sources of income can more substantially affect the bank's profitability. JPMorgan addresses the issue of customer bargaining power primarily by extending attractive offers to potential new customers. Furthermore, it continually strives to convince 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 firms within an industry pressure each other and limit each other's profit potential. If the rivalry is fierce, competitors try to steal profits and market share. Competition within the industry is the strongest of Porter's five forces for JPMorgan Chase. The company faces stiff competition domestically from the other three major money market banks and globally from other large multinational banking firms, such as HSBC and Barclays. One of the elements of the industry that intensifies the importance of competition is the relatively low switching costs that consumers face, especially in the commercial and retail banking sectors. Major banks, just like major mobile phone companies, continually extend offers to lure customers away from other banks. JPMorgan faces competitionof the sector in three main ways. It seeks to stand out on the market mainly on the basis of its long and recognized tradition and experience. It aims to remain at the forefront of offering customer convenience and low-cost, cutting-edge services. It has a history of acquiring smaller banks, removing some of the potential competition from the market. Like any company dealing with important issues, JP Morgan has faced legal issues and global regulatory pressures. In 2013, Jamie Dimon, CEO of JP Morgan Chase, testifies on Capital Hill in Washington regarding the London Whale trading loss. JPMorgan is accused of wrongdoing in how it marketed mortgage-backed securities, how it chased credit card payments from defaulting borrowers and whether it should have noticed that Bernie Madoff was running a giant Ponzi scheme. This resulted in investigations and lawsuits as well as a loss of $6 billion. CEO Jamie Dimon said the bank is undergoing “broad changes” to its business practices and that regulatory compliance is its top priority. “Let me be perfectly clear: These problems were our fault, and it is our job to fix them,” Dimon wrote in his 2013 annual letter to shareholders. “In fact, I feel terrible that we let the regulators down.” Some observers believe JPMorgan was unfairly targeted. They say regulators are criticized for being too lax before the financial crisis and are now overcorrecting by being too corrective. Authorities are focusing on whether the bank had sufficient control over its business operations and also whether it tried to hide or downplay the extent 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" from Congress, U.S. banking regulators, the U.K.'s Financial Conduct Authority and others. JPMorgan says it is cooperating. The bank admitted it had made mistakes. It got rid of top managers, took back bonuses and changed some of its risk management practices. But he rejects any allegations that he tried to hide losses or risks, and is fighting lawsuits from shareholders who accuse him of doing so. Globally, regulatory changes are forcing the sell-side to reconsider current activities and business models as risk-adjusted. rationalization of operations and budget puts pressure on revenue generation and spending. The search for financing pushes the sell side to supplement old sources with new options, to seek new counterparties or to broaden the range of acceptable insurance activities. At the same time, the need to efficiently use all resources in the most effective way forces the transition to enterprise-wide collateral management. Global regulatory pressures are replacing traditional market drivers and changing business behavior. Institutions are facing three categories of challenges: new pressures on capital, liquidity, pricing and costs, changing variables in terms of funding options and sources (such as access to new counterparties and market participants) and how The activities are used for increased requests for optimization, reuse and updates, as well as for enterprise-wide warranty management. With new pressures on capital, liquidity, prices and costs, institutions must evaluate the competing pressures that are changing the environment in which 2016..