CIBC (Canadian Imperial Bank of Commerce) is a financial service-providing and banking company. The bank came into existence in 1961 as a result of the merger of Imperial Bank of Canada and the Canadian Bank of Commerce. Today, we’ll discuss the SWOT analysis of CIBC; it outlines strengths and weaknesses; opportunities, and the threats that the company has to face; as a business strategy analysis example company.
Products and services portfolio of CIBC
- Insurance service
- Investment banking
- Capital lending service
- Mortgages
- Credit cards
- Bank accounts
Subsidiaries of CIBC
- Asset Management CIBC
- World’s Market CIBC
- Trust Corporation CIBC
- Cayman Holdings CIBC
- Investment CIBC
- CIBC Bank USA
Statistical facts and figures of CIBC
- Annual revenue: 23.3billion CAD (2023)
- Net income: 5.0 billion CAD (2023)
- Employees: 48000
- Asset net worth: 975.7billion CAD (2023)
Competitors of CIBC
- Bank of Montreal
- Scotiabank
- Royal Bank of Canada
- Toronto Dominion Bank
- Power Corporation of Canada
The SWOT analysis of CIBC would analyze the internal strengths and weaknesses of the company; and external opportunities and threats that the brand has to face. Here’s CIBC SWOT analysis as a business strategy analysis example company as follows;
Strengths of CIBC
Some of the main internal strengths in the CIBC SWOT analysis example company as business strategy analysis are as follows;
Large Network
CIBC has established a very large network comprising approximately 1050 retail bank branches across the US and Canada. The large network of branches would help the company to increase its accessibility to the end consumers. As a result, it increases the company’s market reach, influence, and network.
Recognized Brand
CIBC is the leading and the largest bank in the North American and Canadian markets in terms of revenue and profitability. The bank has been operating its business in the financial and banking industry for the past over 70 years. It has allowed the company to earn the trust and confidence of customers in the global market.
Business Portfolio
CIBC has established a very large business portfolio comprising various subsidiary brands in various financial categories like investment, asset management, insurance, and others. They help the company to diversify the risk factor and stabilize its earnings and profitability.
High Dividend Ratio
CIBC offers a higher dividend and payment against the investment for its products and services. It allows the company to attract the attention of potential new investors. Most importantly, it shows the company’s higher growth rate in the financial industry.
Large Portfolio
CIBC has a very large and diversified financial products and service portfolio comprising investment, insurance, retail banking, capital lending, credit card, mortgage, and other services. They help the company to serve a wide range of customers with diverse financial needs and requirements.
Better Customer Service
CIBC has established a very large database of loyal customers due to better-improved customer service. Better customer service plays a key role in attracting and retaining customers in the financial service and banking industry.
Weaknesses of CIBC
Some of the main internal weaknesses in the CIBC SWOT analysis example company as business strategy analysis are as follows;
Limited Market Share
CIBC has limited global market share and the company has no presence at all in the developing markets. In fact, the bank is heavily relying on the North American and Canadian markets as its main sources of revenue and profitability. Over-reliance on a few markets is not a good business and market strategy.
Controversies
CIBC has been engaged in various types of controversies like gambling, not paying employees for overtime, regulatory non-compliance, and discrimination claims. These types of controversies negatively impact the brand reputation of the bank in the financial industry.
Opportunities for CIBC
Some of the main available opportunities in the CIBC SWOT analysis example company as business strategy analysis are as follows;
Market Expansion
CIBC should expand its financial service business into new markets, countries, and geographical regions across the world. The European, Asian, and Middle Eastern markets hold great growth potential. The financial business expansion would help the company to increase its revenue, network, and profitability.
Product Portfolio Expansion
Along with market expansion, CIBC should expand its financial product and service portfolio by launching new banking products and services. They help the company to increase its revenue and profitability by targeting new segments of the customer market.
Strategic Alliance
CIBC should develop strategic alliances and partnerships with other financial institutions in other countries. The joint venture and sharing of capital resources would help the company to increase its network, market share, and influence.
Threats to CIBC
Some of the main potential threats in the CIBC SWOT analysis example company as business strategy analysis are as follows;
Tough Competition
CIBC is facing tough competition from competitive brands like RBC, TD Bank, and Scotia Bank. They all have established a strong market share and a very loyal database of customers in the financial and banking industry. Their market presence is negatively impacting the company’s revenue and profitability.
Regulations
Government regulations on interest rates, inflation rates, and taxes have a great impact on the business operation of financial institutions and banks. CIBC should be aware of various financial indicators and comply with government regulations. Any type of non-compliance and delayed response has a negative impact on the company’s revenue and profitability.
Economic Recession
The global economy is going through a recession phase due to international political crises, conflicts, and various other issues. When people have limited income due to a higher unemployment rate, they won’t require investment services from the bank.
Conclusion: CIBC SWOT Analysis Example Company |SWOT Analysis of CIBC |Business Strategy Analysis
After an in-depth study of the swot analysis of CIBC; we have realized that CIBC is the world’s leading retail financial service-providing bank. If you are learning about CIBC SWOT analysis example company; then you should keep in mind the abovementioned internal strengths and weaknesses; external opportunities and threats as brand strategy analysis.
Ahsan Ali Shaw is an accomplished Business Writer, Analyst, and Public Speaker. Other than that, he’s a fun loving person.
