Usaa Swot Analysis free essay sample

This can be a weakness for many members for several reasons. If you do not live near a USAA bank, you lose the ability to make deposits and withdrawals in person, nor are you able to sit down with loan officers, insurance personnel, or retirement planners. Many people prefer this kind of direction and service, especially when it comes to an individual being uncertain about options relating to their finances and planning. This is an inability to provide a certain level of service to the customer, which in many cases allows the member piece of mind and added comfort.This inconvenience can be neutralized with the implementation of more physical locations in cities where the most members are located – usually around military posts. Weakness #2 – No Particular Agent The second organizational weakness is the lack of personalized service. It’s impossible to give personal attention to as many members as USAA has like it is for a smaller community bank and insurance provider. We will write a custom essay sample on Usaa Swot Analysis or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page Since the organization is so large, it is easy to feel lost in the mix and just another number. Smaller community banks and insurance providers have the benefit of getting to know their clients personally, may be better able to serve their specific concerns and clients tend to be more comfortable doing business with someone from their own community with whom they deal with consistently. Also, it can be frustrating that you are unable to speak to the same representative twice when calling a large business such as USAA. USAA can minimize this weakness by creating â€Å"teams† of representatives for their members. Each member can be assigned to a team of 5-7 USAA representatives, one of which will be answering that members concern.Teams would be comprised of representatives from each specialty (IRA planning, mortgage help, banking etc. ) and be available only to their customers. This strategy would provide comfort to the members who like to deal with the same individuals when doing business. Section III – Opportunities and Threats Two opportunities presented to USAA are to expand the number of physical locations both domestically and nationally and to provide additional services to programs already being used. Two threats to USAA include competing financial providers and the downturn of the economy.Opportunity #1 – Well positioned to expand internationally and domestically. The first organizational opportunity is the expansion of services domestically and internationally. USAA is in an excellent position to continue their expansion and development of additional brick and mortar facilities both overseas and within the United States. The current physical locations available have proven successful and more physical locations would allow better service to current members and the ability to serve more new members. This opportunity arises as military enlistment increases, providing a larger market base. This market has shown interest in USAA membership and would utilize additional facilities should they be made available. This is a force in the international and sociocultural dimensions of the general environment. Opportunity #2 – Expansion of Existing Services The second organizational opportunity is to expand some of the services that are already in place. One area that shows room for expansion is the shopping department. USAA offers discounted prices on loose diamonds and jewelry. This merchandise is guaranteed conflict free, quality assured and interest deferred loans are available.Sunglasses and purses would be a welcome addition to this merchandise. And since the jewelry available is predominately for women, I would suggest adding pieces for men, such as watches, cuff links and tie clips. If you expand your products, you are expanding your market. High quality jewelry and other items guaranteed to have been obtained without violence and minimal environmental impact is a preference today. This consumer preference exists in the sociocultural dimension of the general environment. Threat #1 – Competition with other Banking OrganizationsThe first organizational threat is improved strategies of competing financial institutions that are beginning to mimic services and benefits available to USAA members. Community banking institutes are growing to offer more services in one location which has been a long time benefit of USAA membership. Also, other Internet based financial organizations like Navy Federal Credit Union, have begun to market to the military community as well, offering similar services to include home and auto buyin g advice, tax preparation discounts and mobile banking. This increase in competitor’s services threatens to cut in on USAAs market share.Competitors are a factor of the task environment. Threat #2 – Stricter Banking Regulations due to recent Financial Turmoil The second organizational threat is tougher regulations to follow after recent financial crisis in 2008. Many investors have suffered financially due to bad mortgages and other unethical business practices. Also, as a resultant, it is more difficult to secure credit and those who do are saddled with increased interest rates. Due to these factors, individuals have lost trust in banks and may decide to invest elsewhere (if at all).This negative outlook of the financial industry is a strong force in the economic and political-legal general dimension. Section IV – Summary USAA is a leader in its field of serving the service member. Benefits and incentives have achieved a 97% customer satisfaction rating (USAA, 2011). Financial ratings have reported steady growth and the outlook is positive with membership on the rise. Unfortunately, there are few physical locations available and it’s nearly impossible to speak to the same person in the organization twice. This lack of familiarity hurts ease of business.USAA would benefit from the opportunity of expanding the quantity of physical locations to serve more members more conveniently, nationwide. It would also benefit from expanding services and options, such as adding watches, sunglasses and purses to the USAA online store. Due to competition for the financial needs of the military member, USAA will need to continue and expand their incentives, member programs and discounts. Advertisements and recruiting programs should be increased. Close monitoring of the economy and strict adherence to laws and regulations will help USAA through the economic slump.