Discover Financial Services SWOT Analysis, Competitors & USP

Published by MBA Skool Team, Last Updated: April 26, 2020

SWOT analysis of Discover Financial Services analyses the brand by its strengths, weaknesses, opportunities & threats. In Discover Financial Services SWOT Analysis, the strengths and weaknesses are the internal factors whereas opportunities and threats are the external factors.

SWOT Analysis is a proven management framework which enables a brand like Discover Financial Services to benchmark its business & performance as compared to the competitors. Discover Financial Services is one of the leading brands in the banking & financial services sector.

The article below lists the Discover Financial Services SWOT, competitors and includes its target market, segmentation, positioning & USP. Let us start the Discover Financial Services SWOT Analysis:

SWOT Analysis of Discover Financial Services

For Discover Financial Services, SWOT analysis can help the brand focus on building upon its strengths and opportunities while addressing its weaknesses as well as threats to improve its market position.

Discover Financial Services Strengths

The strengths of Discover Financial Services looks at the key aspects of its business which gives it competitive advantage in the market. Some important factors in a brand's strengths include its financial position, experienced workforce, product uniqueness & intangible assets like brand value. Below are the Strengths in the SWOT Analysis of Discover Financial Services :

1. One of the largest credit card brand in United States with 50 million cardholders
2. Can leverage the acquisitions done like, Diners card, TARP, etc.
3. The growth in the EPS of the firm is significantly better than the industry average

4. 11,000+ employees with the organization

5. The brand also has savings products, personal loans, student loans, and home mortgage loans

Discover Financial Services Weaknesses

The weaknesses of a brand are certain aspects of its business which are it can improve to increase its position further. Certain weaknesses can be defined as attributes which the company is lacking or in which the competitors are better. Here are the weaknesses in the Discover Financial Services SWOT Analysis:

1. Is limited to only consumer financial services, i.e., Retail Banking
2. Issues credit cards directly to customers which increased operational cost


Discover Financial Services Opportunities

The opportunities for any brand can include areas of improvement to increase its business. A brand's opportunities can lie in geographic expansion, product improvements, better communication etc. Following are the opportunities in Discover Financial Services SWOT Analysis:

1. Can diversify into Corporate banking, Preferred banking, etc.
2. Can tie up with financial institutions for issuing cards

3. Can expand to other geographic locations

Discover Financial Services Threats

The threats for any business can be factors which can negatively impact its business. Some factors like increased competitor activity, changing government policies, alternate products or services etc. can be threats. The threats in the SWOT Analysis of Discover Financial Services are as mentioned:

1. Uncertainty in the economic outlook poses challenges in its operations
2. Adapting to fluctuating Interest rates as well as new Govt. regulations becomes a difficult task for the firm

3. Increasing competitor activity can affect the business operations


Discover Financial Services Competitors

There are several brands in the market which are competing for the same set of customers. Below are the top 5 competitors of Discover Financial Services:

1. Visa
2. MasterCard
3. American Express

4. Citibank

5. JP Morgan

Hence this concludes the Discover Financial Services SWOT analysis.

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About Discover Financial Services

Discover Financial Services Overview
Parent Company

Sears Holdings Corporation

Category

Financial Institutions

Sector

Banking & Financial Services

Tagline/ Slogan

There’s always something more to Discover

USP

A firm specializing in consumer financial services and provides a wide range of financial products to retail customers

Discover Financial Services STP
Segmentation

Individuals, High Net Worth Individuals (HNI’s) and large investors

Target Market

Individuals & HNI’s

Positioning

One of the largest consumer financial services offering unique products to its customers

 

This article has been researched & authored by the Content & Research Team. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.

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