Commonwealth Bank SWOT Analysis, Competitors & USP
Published by MBA Skool Team, Last Updated: April 26, 2020
SWOT analysis of Commonwealth Bank analyses the brand by its strengths, weaknesses, opportunities & threats. In Commonwealth Bank 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 Commonwealth Bank to benchmark its business & performance as compared to the competitors. Commonwealth Bank is one of the leading brands in the banking & financial services sector.
The article below lists the Commonwealth Bank SWOT, competitors and includes its target market, segmentation, positioning & USP. Let us start the Commonwealth Bank SWOT Analysis:
For Commonwealth Bank, 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.
Commonwealth Bank Strengths
The strengths of Commonwealth Bank 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 Commonwealth Bank :
1. The bank owns various brands such as Bankwest, ASB Bank, Commonwealth Securities Limited and Commonwealth Insurance Limited. 2. The bank has operations in various countries such as New Zealand, Fiji, USA and the United Kingdom 3. The bank is the one of largest Australian listed company on the Australian Securities Exchange.
4. The bank is one of the “Big four” Australian banks, in the same league as National Australian bank, Westpac and ANZ.
5. The bank provides services such as Insurance, Consumer banking, Corporate banking, Investment banking, Global wealth management, Private equity, Mortgages, Credit cards
6. The bank has a strong revenue and increasing profit
7. The bank employs over 44,000 employees . The bank is the only financial services organisation to appear in the Dream Employers' top 20 list of preferred employers
Commonwealth Bank 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 Commonwealth Bank SWOT Analysis:
1. The bank was involved in controversies which was started by a action group and website called “Unhappy Banking” 2. The financial strength rating by Moody’s provided for the Commonwealth bank is B- 3.The bank sees a loan impairment expense which is a concern
Commonwealth Bank 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 Commonwealth Bank SWOT Analysis:
1. Implementation of technology into the core banking activities will help the bank to increase its quality of services and hence increase its reach. 2.Initiatives such as “One Commbank” helps build relationships with customers which is very important for sustained growth
3. Expansion of activities in Asia and other emerging markets can help the bank to have long term growth.
Commonwealth Bank 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 Commonwealth Bank are as mentioned:
1. The banks activities and profits are affected by the investor confidence in the global economy. A weak economic outlook can lead to stagnation or decline in growth. 2. The bank can face risk due to changes in foreign exchange rates as it has operation based on various geographies. 3. The bank can face default risk due to counter party not being able to meet their obligations influx
Commonwealth Bank Competitors
There are several brands in the market which are competing for the same set of customers. Below are the top 3 competitors of Commonwealth Bank:
1. National Australian bank 2. Westpac 3. ANZ
Hence this concludes the Commonwealth Bank SWOT analysis.
Approval of personal loans within the same working day.
Commonwealth Bank STP
Australian citizens and international clients
Australian citizens, international clients and businesses requiring banking services
A bank which provides services in a simple and effective manner.
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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