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  • June 19th, 2024

HSBC Case Study With SWOT Analysis

HSBC Holdings plc is one of the biggest banking and financial assistance companies all over the globe. The headquarters of the company is located in London, United Kingdom. This organization has been working for consumers for over 150 years and they are available in 64 nations and regions. 

The cause behind the growth of the bank and the policy behind this development is that it has implemented a few most prosperous marketing strategies with the help of digital platforms because most consumers are available online now. 

In this article, we are going to do a case study of HSBC with an in-depth SWOT analysis. But before this, we have to learn about HSBC as an organization. 

A Short Overview of HSBC

The Hongkong and Shanghai Banking Corporation Limited, a fully-owned subordinate of HSBC Holdings, was developed with a straightforward concept of banking in March 1865. This is a regional bank that serves global requirements. The name of this organization is recorded on the stock exchanges of London, Hongkong, New York, and Bermuda. It was just recorded #43 in Forbes as the most useful brand in the world. HSBC officially originated from The Hongkong and Shanghai Banking Corporation. It serves in various geographical locations like the US, Asia, Europe, North Africa, and the Middle East. 

Have a glance at the basic details of HSBC: 

InventorSir Thomas Sutherland
Year of Invention1865
RootUnited Kingdom
No. of Workers226,059
Type of the companyPublic
Market Capital$ 118.97 Billion as of 2021
Annual Income$ 50.429 Billion as of 2020
Net revenue/ earnings$ 6.009 Billion as of 2020

What services are offered by HSBC?

HSBC offers a wide range of services. Some of them are as follows: 

  • Equity trading and private equity
  • Credit cards
  • Asset management
  • Investment banking and investment management
  • Insurance
  • Mortgage loans, mutual funds

Who are the adversaries of HSBC?

The competitors of HSBC are as follows: 

  • Citi Group
  • Deutschen Bank
  • Standard Chartered Bank
  • Bank of America
  • China Construction Bank Corporation
  • National Australia Bank

In-depth SWOT analysis of HSBC

With the help of the SWOT analysis of HSBC, we are going to analyze the strengths, weaknesses, opportunities, and threats of the organization in detail. It consists of two factors: inner and outer. Strengths and weaknesses depend on inner factors on the other hand, opportunities and threats depend on outer factors of the company. 

We have given below a step-by-step comprehensive detail to assist you with the SWOT analysis of HSBC. 

Strengths of HSBC 

  • Global expanse: 

The international spread of HSBC is one of the most important strengths of the company. 

  • Diversified and Highly Skilled Workforce: 

Different people, points of view, and opinions have enabled HSBC to make a powerful, devoted, and affiliated crew. Moreover, the company has been financing massive sources for the expansion and mentoring of its workers. 

  • Highly Capitalized

It has been priced in the past that HSBC is supposed to be a highly capitalized company. It is capable enough to fight any kind of problem in the upcoming days and they do not need to depend on the administration at the time of the emergency. 

  • Great Return on Capital Expenditure: 

HSBC has successfully executed new schemes and created new revenue bases which enables the organization to make a huge amount of return on capital expense. 

  • Hybrid Working Model: 

The organization has taken up a working prototype that endorses partnerships between physical and virtual workplaces and concentrates on the mental health and well-being of their workers. 

  • Climate Strategy: 

The company has understood that our globe requires some urgent, powerful, and interminable action to save our trades, societies, and the biological climate from the harsh impacts of weather change. Moreover, they have been speeding up inventions. To level up weather transition explanations and create multinational alliances so that acquisition is directed towards endurable schemes. 

Weaknesses of HSBC

  • Vulnerable Financial Position: 

The economic status of HSBC has become diluted because the amount of the company’s debt is in relation in consonance with the loan stock portfolio of the company. 

  • Name Changes: 

The company frequently develops banks plunger various names like Hong Kong Bank of Canada, British Bank of the Middle East, etc for more than 100 years. The shortage of branding and the name switches have made the brand credit of the organization vulnerable.

  • Involvement in Controversies: 

The name of the company is associated with various dishonors, hoaxes, and disputes that set the trustworthiness of the firm under question. Consumers encounter it tough to rely on a firm that is involved in disputes. 

  • Cannot Face Challenges:

As soon as the company faces challenges from newcomers in the market, it fails to handle the crisis and loses a little market stake in the niche types. HSBC requires to make an inner feedback tool straight with its sales crew to handle these difficulties easily.

Opportunities of HSBC

  • Progressive Digitalization: 

The company has financed a huge amount of capital over the past couple of years to develop the online platform of the company. Due to this investment, their sales sources have increased. With the help of this opportunity, the company can learn about its consumers better and fulfill their requirements with the help of data analytics in the upcoming days. 

  • Work on Building Strong Position: 

This will enable HSBC to surpass its adversaries at the time of a financial downfall and develop an influential stature for being one of the safest banks for depositors to make investments. 

  • Analyzing Trends: 

New fads in customer behavior will insist on opening new markets. HSBC may benefit from these growing trends and improve its share in the market. 

Threats to HSBC

  • Introduction of New Technologies:

For an industry newly developed technologies by the opponents can be a very serious threat to its long to medium-terms. 

  • Growth of Local Distributors: 

The development of regional distributors may create a threat in the market because the contest is giving increased profits to regional distributors. 

  • Less Credit Availability:

The company has less credit available for the consumer’s use of the losses borne by the company and investors on a multinational level. 

  • Changes in Rules and Regulations: 

Modifications in the rules and regulations in the nation where HSBC serves may cause a threat to the profitability of the company. 

  • Other Problems: 

Besides the above-mentioned issues, there are also a lot of other problems like economic losses, increasing credit problems, and corrupt behavior among the banks that may reduce the possibilities and consumers of a company. 

Final Opinion

HSBC has developed incredibly all over the globe and grabbed multiple markets and enterprises. Being a portion of the multinational banking industry, HSBC may take the edge of incredible possibilities and improve its market share. 

HSBC needs to reconsider its technique by assessing its strengths, weaknesses, opportunities, and threats in the marketplace. With the help of the latest blockchain, artificial intelligence, and machine learning HSBC is making banking digitized so that banking becomes easier and much more safe for consumers. 

The competition among the banks is growing day by day. That is why HSBC and many more organizations all across the world are concentrating on developing their marketing efforts with the help of digital channels. 

We expect that this article on the SWOT analysis of HSBC will help you to learn about the strengths, weaknesses, opportunities, and threats of the company in detail. To know more, you may choose My Assignment Writing Help

FREQUENTLY ASKED QUESTIONS

  1. What is the Latest Scandal of HSBC?

The money laundering scandal of HSBC had considerable effects on the bank as well as its shareholders. The financial abilities and lawful outcomes created a significant economical limitation for the bank and the disgrace also set an adverse effect on the stature and economic performance of the bank. 

  1. What is the Reason Behind the Success of HSBC?

One of the most important reasons behind the success of HSBC is its highly efficient workforce which has enabled HSBC to secure the top position all over the world. Consumers depend on HsBC because of its reliability, brand image, professionalism, and many more. That is why HSBC has become so successful and the slogan of the company ”world’s local bank” has made it more successful. 

  1. What is the Future of HSBC?

Customers are going to get customized financial help, instant home-buying decisions, and even harder cybersecurity from the latest technology in the following 10 years. The primary reason behind this drastic change is that artificial intelligence is going to rule the market.

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