O slideshow foi denunciado.
Utilizamos seu perfil e dados de atividades no LinkedIn para personalizar e exibir anúncios mais relevantes. Altere suas preferências de anúncios quando desejar.

Strategic analysis of first bank of nigeria plc

8.625 visualizações

Publicada em

  • Entre para ver os comentários

  • Seja a primeira pessoa a gostar disto

Strategic analysis of first bank of nigeria plc

  1. 2. SWOT Analysis Area of Core Competencies Conclusion and Recommendations
  2. 3. <ul><li>1894 Incorporated in Liverpool as British Bank for West Africa. </li></ul><ul><li>1969 Incorporated Locally as the Standard Bank of Nigeria Limited. </li></ul><ul><li>1971 Listed on the Nigerian Stock Exchange. </li></ul><ul><li>2002 Established First Offshore Financial Subsidiary of Nigerian Owned Bank in UK. </li></ul><ul><li>2005 Acquired Two Banks; MBC international Bank Limited and FBN (Merchants Bankers) Ltd. </li></ul><ul><li>2007 Floated First Ever Hybrid-Capital Offering Out of Africa. (www.firsrbanknigeria.com) </li></ul>
  3. 4. <ul><li>Vision: “To be the clear leader and Nigeria’s bank of first choice” </li></ul><ul><li>Mission: “To remain true to our name by providing best financial services possible” </li></ul><ul><li>(www.firsrbanknigeria.com) </li></ul>
  4. 5. <ul><li>Leadership </li></ul><ul><li>Status/Ability as “truly the first” and No1. </li></ul><ul><li>Safety and Security </li></ul><ul><li>Security of funds/Investment </li></ul><ul><li>Job security and Integrity </li></ul><ul><li>Enterprise </li></ul><ul><li>Resourcefulness and Tenacity </li></ul><ul><li>Service Excellence </li></ul><ul><li>Efficiency </li></ul><ul><li>Reliability/Acce ssibility </li></ul>
  5. 6. 24 Banks Operates in Nigeria 4 biggest competitors in terms of market capitalisation . (Number of share outstanding multiply by share price)
  6. 7. <ul><li>Political </li></ul><ul><li>Political Stability </li></ul><ul><li>Policy Inconsistency </li></ul><ul><li>High Rate of Corruption </li></ul><ul><li>Economic </li></ul><ul><li>High Cost of Living </li></ul><ul><li>High Unemployment Rate </li></ul><ul><li>Growing Inflation Rate </li></ul><ul><li>Conducive Investment Atmosphere </li></ul>
  7. 8. <ul><li>Social </li></ul><ul><li>High Level of Illiteracy </li></ul><ul><li>Disappearing Middle Class </li></ul><ul><li>High Population Growth Rate </li></ul><ul><li>High Rate of Insecurity </li></ul><ul><li>Technology </li></ul><ul><li>Introduction of Global System for Mobile Communication (GSM ) </li></ul><ul><li>Growing Internet Usage </li></ul><ul><li>Increase Government Spending on ICT </li></ul>
  8. 9. <ul><li>Strength </li></ul><ul><li>Strong Brand Image </li></ul><ul><li>Wide Branch Coverage </li></ul><ul><li>Strong Economic Franchise </li></ul><ul><li>Cross Selling Capability </li></ul><ul><li>Solid Management </li></ul><ul><li>Weakness </li></ul><ul><li>Low Marketing Drive </li></ul><ul><li>Generational Issue </li></ul><ul><li>Low ICT Drive </li></ul><ul><li>Weak International Expansion </li></ul>
  9. 10. <ul><li>Opportunities </li></ul><ul><li>High Population Growth Rate </li></ul><ul><li>Increasing ICT Awareness </li></ul><ul><li>Increase in Foreign Direct (FDI)Investment Inflow </li></ul><ul><li>Global Integration and Harmonisation of Banking Practices and Regulation - </li></ul><ul><li>Threats </li></ul><ul><li>Infrastructural Problem </li></ul><ul><li>Disappearing Middle Class </li></ul><ul><li>Growing Illiteracy Level </li></ul>
  10. 11. Potential Entrants Threat of entrants Bargaining power Suppliers COMPETITIVE RIVALRY Threat of substitutes Substitutes Bargaining power Buyers
  11. 12. <ul><li>Threat Of Entrants </li></ul><ul><li>Barrier to Entry is High </li></ul><ul><li>N25 billion capital base </li></ul><ul><li>High Regulatory Requirements </li></ul><ul><li>Low differentiation </li></ul><ul><li>Buyers Power </li></ul><ul><li>Buyers Power is Very high </li></ul><ul><li>24 banks services around 80million bankable population </li></ul><ul><li>High concentration of customers </li></ul><ul><li>There are lots of alternative traditional sources to bank services </li></ul>
  12. 13. <ul><li>Suppliers Power </li></ul><ul><li>Supplier Power is low </li></ul><ul><li>Banks chasing very few software providers/Vendors </li></ul><ul><li>Switching cost is very low </li></ul><ul><li>Forward integration by supplier is not likely </li></ul><ul><li>There are number of substitutes </li></ul><ul><li>Threat of Substitute </li></ul><ul><li>Threat of substitute is high </li></ul><ul><li>customer propensity to substitute is very high </li></ul><ul><li>Customer’s cost of switching is very low </li></ul><ul><li>There are other companies who performs the same function .i.e. cooperative society and the local contribution agents. </li></ul>
  13. 14. <ul><li>Competitive Rivalry </li></ul><ul><li>Intensity of competition is high </li></ul><ul><li>Many players with almost equal capability </li></ul><ul><li>There is little difference between competitors services </li></ul><ul><li>The marketing drive within the industry is hyper i.e. banks can only grow by going after competitors customers </li></ul><ul><li>Summary of Analysis </li></ul><ul><li>Nigerian banking sector is highly competitive </li></ul><ul><li>Marketing and innovation drives competition rather than price. </li></ul><ul><li>Customers have different options and it does not cost the much to switch. </li></ul><ul><li>Because of the merger from 98 banks to 24 most banks are of equal size. </li></ul>
  14. 16. <ul><li>First Bank’s vision statement is to remain the clear leader and Nigerian’s bank of first choice. The banks has built its strategy around its brand image so much so that no competitor has been able to surpass its leading position in the Nigerian banking sector. </li></ul><ul><li>The bank is trying to overcome the old generation image attached to it, its number one perception is rather based on strong economic franchise and superior financial performance. When it comes to superior banking services some competitors have got better ideas. </li></ul><ul><li>The bank’s insistence on generic growth within Nigeria might be short-changing it from the enormous opportunities provided by the economic integration of Africa. Other competitors have spread their tentacles around sub-saharan Africa and they are seriously leveraging on the out of country opportunity. </li></ul>
  15. 17. <ul><li>Brabet, J. and Klemm, M (1994) Sharing the Vision: Company Mission Statement in Britain and France. Long Range Planning , Vol.27, No.1, pp.84-94. </li></ul><ul><li>Johnson, G, Scholes, K and Whittington, R (2006) Exploring Corporate Strategy: Text and Cases. 7 th ed. Harlow, Prentice Hall. </li></ul><ul><li>Lynch, R (2000) Corporate Strategy. 2nd ed. Prentice Hall, Harlow. </li></ul><ul><li>Albright, K (2004) Environmental Scanning: Radar for Success. Information Management Journal. Lemexa: Vol. 38, Iss.3; pp.38-47 </li></ul><ul><li>www.firstbanknigeria.com </li></ul><ul><li>www.cenbank.org </li></ul>