“SWOT is an acronym for the internal Strengths and Weaknesses of a firm and the environmental Opportunities and Threats facing that firm. SWOT analysis is a widely used technique through which managers create a quick overview of a company’s strategic situation. The technique is based on the assumption that an effective strategy derives from a sound “fit” between a firm’s internal resources (strengths and weaknesses) and its external situation (opportunities and threats). A good fit maximizes a firm’s strengths and opportunities and minimizes its weaknesses and threats. Accurately applied, this simple assumption has powerful implications for the design of a successful strategy.”

Bank of America Corp. 

BoA provides a range of financial services including retail banking, corporate banking, investment banking, asset management, and credit card services. BoA is one of the leading financial services companies and one of the top two banks in the US. At the end of first half of 2007, the company was the 11th largest company in the world terms of market capitalization and fourth largest in the world in terms of earnings. The company’s market position is supported by a strong distribution network, unmatched by its competitors. The company, therefore, enjoys a dominant market position and leverages its position to gain competitive advantage over its peers. However, the losses due to subprime market exposure put pressure on margins and erosion of capital.