Wells Fargo Case Study Paper.
Wells Fargo is a USA banking company that has exhibited growth over decades. The
bank has been in existence since 1989 and attributes its success in the tough banking industry to
a well-managed system (Schifrin & Touryalai, 2012). Wells Fargo employees are the most
priced asset that the company enjoys. Human resources help Wells Fargo in one of its most
crucial comparative advantages: cross- selling. Wells Fargo employs stay in the bank for a
considerable amount of time and this means that most of the company’s clients forge strong
relations with these staff. The fact that these employees stay with the institution for longer means
that consumers purchase more of the bank’s products for a longer period. More purchase of
products translates to additional revenues for the bank. Wells Fargo Case Study Paper.
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The company believes that the people are one of its most priced resources and as a result, it positions itself as an employer of choice
(Lashinsky & Burke, 2009). The bank strives to be a great company to work. The bank is a
destination where teamwork is rewarded and valued. The company knows the significance of a
diverse staff. It also promotes innovation – better and new ways of serving its client base. Wells Fargo Case Study Paper.
Wells Fargo Core and Distinctive Competencies
Unlike conventional banking institutions that focus primarily on expanding their interest
revenue stream, Wells Fargo strives to maintain equilibrium between its non- interest revenue
and interest revenue from loans. Non- interest revenue is Wells Fargo’s core competence and it is
derived from selling a number of fiscal products. The fiscal products that forms part of the banks
competencies include wealth management, equity brokerage, insurance and mutual funds. This
segment accounts for about 49 percent of Wells Fargo’s income (Wells finalizes $1.2 billion
settlement, 2016). The reason as to why Wells Fargo focuses on non-interest products is that the company derives a significant amount of revenue from this segment. Wells Fargo Case Study Paper. Its peers – like JP Morgan,
Citigroup, or Bank of America – also earn significant revenue from fee- based income, but none
of these rivals can match Wells Fargo’s potential in this business division.
Wells Fargo Comparative Advantage
Wells Fargo is a successful venture which attributes its success to its comparative
advantages that include: first, employee value (Wells Fargo & Company SWOT Analysis, 2016). Wells Fargo Case Study Paper.
The company values its staff and this is for the reason that the company views its workforce as
the primary drivers of all activities. In this respect, Wells Fargo trains its staff in various
initiatives in order to enhance the value and skills of the employees. The second source of
comparative advantage is customer retention (Milligan, 2015). The company works hard in order
to retain its customers. As a matter of fact, Wells Fargo has a 10 year average relation with about
40 percent of its clients. This has significantly contributed towards the company’s high cross-
selling levels of its products and services. The final source of comparative advantage for Wells
Fargo is its financial size and reserves (Wells Fargo, 2016). In spite of its large size and high
profits, the bank uses its fiscal reserves to minimize risks. Wells Fargo Case Study Paper.
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References
Lashinsky, A., & Burke, D. (2009). Riders on the Storm. Fortune, 159(9), 72-80.
Milligan, J. (2015). The Wells Way. Bank Director, 25(4), 14-21.
Schifrin, M., & Touryalai, H. (2012). The Bank That Works. (cover story). Forbes, 189(2), 66-
73. Wells Fargo Case Study Paper.
Wells Fargo & Company SWOT Analysis. (2016). Wells Fargo & Company SWOT Analysis, 1-
8.
Wells Fargo. (2016). Alaska Business Monthly, 32(4), 150-151.
Wells finalizes $1.2 billion settlement. (2016). Mortgage Banking, 76(8), 10. Wells Fargo Case Study Paper.