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union_bank_of_switzerland_swot_analysis.docxUnion Bank of Switzerland SWOT Analysis
Luis Green
MKTG320
Jodee C. Phillips
Introduction
The Union Bank of Switzerland (UBS), is one of the leading banks in the world. An analysis was done on UBS which basically serves as a planning method used to evaluate the strengths, weaknesses, opportunities, and threats. (SWOT) Listed below are some of the strengths, weaknesses, opportunities, and threats found. This analysis will bring light to what the industry must be aware of and how it can be able to use this chart to remain being one of the most successful banks in the world. It looks at the environment in which UBS operates and also looks at its competition. Basically the bank should be able to use this analysis to continue improving on strengths, strengthening its weaknesses, minimizing threats, and taking full advantage of its opportunities.
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SWOT Analysis |
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Strengths |
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Weakness |
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1. Geographical diversified operation |
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1. Decrease in net income interest |
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2. Strong market position/world's largest wealth manger |
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2. Waning profits and returns since 2006 |
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3. Strong Capital Adequacy Ratio |
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3. Poor performance in Switzerland |
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Opportunities |
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Threats |
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1. Lucrative asset management industry |
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1. Consolidation of the financial services |
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2. Growing investment banking industry |
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UBS has been shielded from economic downturns due to its operation being diverse. It is the leading retail and commercial bank in Switzerland. Its capital adequacy ratio is Tier 1 and sitting at 11 percent. The downfall however, is that even though UBS is one of the world’s leading bank industry, its performance in Switzerland has been very poor. Since 2006, it has recorded significant decline in profits. Growing investment has been on the rise, however leaving many avenues in which they can attract more of its clients. The biggest threat to UBS right now is many of the other financial services are coming together and becoming stronger.
Competition in the financial sector is continuing to rise due to the merging. UBS has managed however to stay relevant and has a dedicated research team and resources that has allowed them to do so. UBS has a large market because of it being globally diversified. Their clients enjoy higher bargaining power while the suppliers of UBS, on the other hand, have very low bargaining power. Since their market is larger, it has more clients that will require their needs to be catered to in order to sustain and increase its market base.
Reference
SWOT Analysis and Porter's 5 Forces analyses for Union Bank of Switzerland (UBS). (2012, September 24). Retrieved from http://writepass.com/journal/2012/09/swot-analysis-and-porters-5-forces-analyses-for-union-bank-of-switzerland-ubs/
