Wells Fargo is an American company and thus has to deal with the US government policy. Nowadays the latter is globally stable but the company must adapt to new education rules (such as educational loans), taxation, new technologies, access to property (real estate loans), and labor market. Besides, the company has to respect all directives of the Basel Accords. The company enters the frame of the Gramm-Leach-Bliley Act, which allows investment and commercial banks to consolidate.
Wells Fargo operates in the financial services industry and is thus part of the American Banking System. This position explains why the company suffered so much from the financial crisis. Moreover, Wells Fargo is used to dealing with cross selling and mortgages hence its activities are linked to both interest rates and GNP. For instance, rises in interest rates in 2008 and 2009 have affected the company.
[...] Wells Fargo fits the patterns of cross selling and differentiation in order to develop a hard-‐to-‐copy knowledge. 5 The customers' need (private customer or company) and its resources or size are the main factor we have to take into account in order to understand the segmentation in the banking market. [...]
[...] Wells Fargo's Cross Selling strategies 3 2 1 1. Strategic environment a) PESTEL Model Economic factor Political factor 2 Wells Fargo is an American company and thus has to deal with the US government policy. Nowadays the latter is globally stable but the company must adapt to new education rules (such as educational loans), taxations, new technologies, access to property (real estate loans), and labor market. [...]
[...] In this sector, the competition is established and stable. This is why every firm tries to have a sustainable competitive advantage. In order to do so and because of many investments at stake, companies lead strategies over years. Aims such as “G for Gr-‐eight” for Wells Fargo are only reachable in middle or long term. [...]
[...] That is why companies have to develop numerous different strategies in order to sustain competitive advantages. The main strategy for Wells Fargo is differentiation with those different factors: Create difficulties of imitations: The complexity of such organization and high costs in R&D and in sales forces training are raising entry barriers. Using intangible assets: Brand reputation and 150 years history. [...]
[...] Thus, the switching cost is low. Consumers don't care to have several financial stops, they had better purchase at the best prices. 4 In that case, the supplier is the Fed, which defines interest rates. Those rates allow the banks to borrow more or, in the contrary, less easily money. [...]
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