The Charles Schwab Corporation – SWOT Analysis
The Charles Schwab Corporation is an American based public limited company. It was found in 1971, under the name of First Commander Corporation. However, just 2 years later, its name was changed to what and is currently headquartered in San Francisco, California, US. The nature of this company is banking and brokering. Today, it is one of the largest institutions for brokering around the world, and is thoroughly famous because of its discount offers. In 2009, the total annual revenue for the Charles Schwab Corporation was calculated to be $4.19 billion. The company employs 13600 people in its 300 offices across the US, UK and Hong Kong. A brief analysis of the external and internal strengths and weaknesses of the company is given in the upcoming paragraphs.
The company has a very positive image in the eyes of the US local population, because of which most of the people tend to prefer Schwab for their brokering requirements. The company was noted to have a client brokerage of $7.9 million as of 2011 that clearly projects the width of its clientele base.
The company employs 13600 people to work for its 300 offices. A high number of work forces efficiently managed and divided into adequate levels of hierarchy help the company to maintain its standard and entertain all the people with utmost pleasure, to make them satisfactory.
As mentioned earlier, the company operates dominantly in just three areas across the world, i.e. UK, US and Hong Kong. Brokering demands are not just limited to these areas. There are more countries, especially the developing ones, where such demands are fiercely erupting. However, the Schwab corporation is not there to meet their demands, and ultimately, it is going to be a competitor who might avail this opportunity in an attempt to overpower the company.
Another weakness of the company is sales of US trust. The higher the trust is sold, the more the profit is shrinking.
The whole world is undergoing a recession, because of which aggregate demands are decreasing, competitors are growing and investments are declining. This could be a direct threat to one of the greatest companies of the world operating in this industry. Profitability ratios for the company might decrease, and even the company can go into recession. Competitors, however, may not be a very serious threat for ht company at this stage, because such companies operate based on their individual portfolios, and for Schwab corporation, the portfolio is enriched.