Question

Provide a SWOT analysis of Discovery bank.

Answer 1

Strengths of Discover Financial Services – Internal Strategic Factors

As one of the leading companies in its industry, Discover Financial Services has numerous strengths that help it to thrive in the market place. These strengths not only help it to protect the market share in existing markets but also help in penetrating new markets.Some of the strengths of Discover Financial Services are –

1.Successful track record of developing new products – product innovation.

2.Successful track record of integrating complimentary firms through mergers & acquisition.

3. Good Returns on Capital Expenditure

4. Discover Financial Services is investing huge resources in training and development of its employees resulting in a workforce that is not only highly skilled but also motivated to achieve more.

5. Superb Performance in New Markets

6.Highly successful at Go To Market strategies for its products.

Weakness of Discover Financial Services – Internal Strategic Factors

Weakness are the areas where Discover Financial Services can improve upon.

1. Limited success outside core business

2. There are gaps in the product range sold by the company. This lack of choice can give a new competitor a foothold in the market.

3. The marketing of the products left a lot to be desired.

4. High attrition rate in work force – compare to other organizations in the industry

Opportunities for Discover Financial Services – External Strategic Factors

1.Government green drive also opens an opportunity for procurement of Discover Financial Services products by the state as well as federal government contractors.

2.Stable free cash flow provides opportunities to invest in adjacent product segments.

3.New customers from online channel

4.Decreasing cost of transportation because of lower shipping prices can also bring down the cost of Discover Financial Services’s products thus providing an opportunity to the company - either to boost its profitability or pass on the benefits to the customers to gain market share.

Threats Discover Financial Services Facing - External Strategic Factors

1. Imitation of the counterfeit and low quality product is also a threat to Discover Financial Services’s product especially in the emerging markets and low income markets.

2. No regular supply of innovative products

3. Liability laws in different countries are different and Discover Financial Services may be exposed to various liability claims given change in policies in those markets.