Strategic Plan for Bank of America By L

Strategic Plan for Bank of America By L. Ray

Executive Summary • 19. 6 million online customers • Over 5000 branch locations • Acquisition of MBNA

Merger June 30, 2005 • Purchased MBNA for $35 billion in cash and stock • Merger closed on January 1, 2006 • Now the largest issuer of credit cards in the U. S. • Surpasses J. P. Morgan Chase

Strengths Strong cash position Long standing name New acquisition Over 5700 brick and mortar locations • Convenient banking available • Investment opportunities • •

Weaknesses • Increasing Overhead expenses • Online lending • Mortgage have gained more than 70% of the mortgage origination market over the past decade.

Industry Environment-Competitive Rivalry • • • New entrants Buyers Suppliers Substitutes Industry competitors

New Competitors • • • Car Manufacturers Insurance Companies Retailers Internet Based Companies Supermarkets

Long Term Objectives • Increase Market share • Increase customer base • Increase profitability • Reduce Overhead • Reduce service fees

Critical Success Factors • Effective Communication • Maintain customer loyalty • Internet banking education • New advertising • Constant customer service monitoring

The strategy being implemented will enable Bank of America to enhance its revenue, and aid in becoming the number one bank in the United States.