Wells Fargo’s Core Competencies have also made a significant contribution to the benefits that the company’s products provide to its customers. It is difficult for competitors to copy or obtain what they have accomplished. Having a clear understanding of their core competencies empowers Wells Fargo to invest in the characteristics that set them apart (Maxfield, 2016). Strategic plans for the entire organization are critical in the development of the company. The core competencies by Wells Fargo are as follow:
Valuable
Wells Fargo has a reputable brand name and a strong financial position in the market. This is in conjunction with an excellent credit rating. They also happen to provide a variety of services and products to customers. This is due to the fact that they are the second-largest financial institution in the world in terms of deposits.
Rare
Wells Fargo employs a large number of people in the United States. This is something that distinguishes the company from the competition. These employees have received extensive training and development, which is not the case with employees from other companies. These employees are less likely to leave for other companies because of the improved compensation and working environment.
Inimitable
Their brand is easily imitated, and they offer nothing unique when compared to other financial institutions. Wells Fargo is one of the largest employers in the country when it comes to hiring new employees. Their ability, on the other hand, is questionable.
Non-substitutable
Wells Fargo has grown inexorably along with its customers over the years. They provide a wide range of services, including mortgages, credit cards, investing, and, most importantly, banking services. The company has been in operation for a long period of time. Even in the face of fraudulent activity within the company, this alone demonstrates the company’s long-term viability and appropriate management.
Organization
Wells Fargo’s financial resources are organized in such a way that they capture value. These resources are used strategically in order to make investments in the appropriate areas. The company is taking advantage of opportunities while also addressing threats. Consequently, Wells Fargo’s resources prove to be a source of sustained competitive advantage for the financial services company (Labitan & Callahan, 2012).
Sustainable competitive advantages
Wells Fargo has successfully transformed itself into the best bank in the world, according to Forbes. It has been extended to a large number of countries. One of the reasons for this is the company’s expansion and location in even the most remote areas (Marco, 2012). By expanding its geographic reach, it is able to target and gain more customers, thereby increasing its revenues. Wells Fargo is better able to connect with its customers and build strong, long-lasting relationships as a result of having more locations.
Furthermore, Wells Fargo provides its services through a variety of channels and with more sophisticated technology. There are numerous ways for customers to access the company’s services as a result of this. This contributes to the further strengthening of their network. Wells Fargo’s success and growth are dependent on the company’s continual technological development and improvement. In order to provide their customers with mobile payment systems, it has always made an effort. The use of an online payment system allows businesses to keep up with rapidly evolving technology. This enables the company to provide customers with services that are easily accessible and convenient.
As a part of their strategies, they are concentrating on meeting the changing needs of their customers and clients. As a result of these strategies, Wells Fargo has placed a strong emphasis on retaining its existing customers. Because of Wells Fargo’s expansion and growth, any type of financial crisis does not directly impact the company’s operations. It has been able to maintain its position in the market for a number of years at this point. And the company’s dominant position in the industry serves as its most significant competitive advantage.
References
Hearit, L. B. (2018). JPMorgan chase, bank of America, Wells Fargo, and the financial crisis of 2008. International Journal of Business Communication, 55(2), 237-260. https://doi.org/10.1177/2329488417753952
Labitan, B., & Callahan, N. (2012, May 21). Wells Fargo (WFC): Competitive – GuruFocus.com. Value Investing | Market Insight of Investment Gurus. https://www.gurufocus.com/news/177432/wells-fargo-wfc-competitive-advantages
Marco, G. J. (2012). BNY Mellons sustainable outlook. Journal of Business Case Studies (JBCS), 8(6), 551-558. https://doi.org/10.19030/jbcs.v8i6.7376
Maxfield, J. (2016, August 3). Wells Fargo has this big advantage over its competitors. The Motley Fool. Retrieved November 23, 2021, from https://www.fool.com/investing/2016/08/03/wells-fargo-has-this-big-advantage-over-its-compet.aspx
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