Bank of America acquired MBNA for $35 billion, making it the largest issuer of credit cards in the US, surpassing JPMorgan Chase. The strategic plan aims to increase market share, customer base, and profitability by maintaining strong customer loyalty through effective communication, internet banking education, and constant customer service monitoring.

1. Strategic Plan for Bank of America By L.Ray

2. Executive Summary 19.6 million online customers Over 5000 branch locations Acquisition of MBNA

3. MergerJune 30, 2005 Purchased MBNA for $35 billion in cash and stock Merger closed on January 1, 2006 Now the largest issuer of credit cards in the U.S. Surpasses J.P. Morgan Chase

4. Strengths Strong cash position Long standing name New acquisition Over 5700 brick and mortar locations Convenient banking available Investment opportunities

5. Weaknesses Increasing Overhead expenses Online lending Mortgage have gained more than 70% of the mortgage origination market over the past decade.

6. Industry Environment-Competitive Rivalry New entrants Buyers Suppliers Substitutes Industry competitors

7. New Competitors Car Manufacturers Insurance Companies Retailers Internet Based Companies Supermarkets

9. Increase customer base

10. Increase profitability

11. Reduce Overhead

13. Maintain customer loyalty

14. Internet banking education

15. New advertising