Marketing analyses for the Arab National Bank - Essay Example

s Sovereignty Number Guidelines for Conducting Case Analysis Analysis of Arab National Bank in Financial Cards and Payments (Saudi Arabia)Current SituationThe company plans to continue investing in the infrastructure which will enable it to be a high-tech banking institution. The banks aim to target high income female earners in the country through improved structures around the country. Information technology is also another strategy where the company gives out high speed tech devices to the consumers that are eligible.

IssueCustomer TargetMissionTo provide high quality and innovative services and products to our customers through a friendly, accessible facilities and delivery mechanisms and channelsObjectivesTo improve Customer satisfaction and complete customer appreciationTo work as a team to ensure company productivityTo ensure integrity and credibility in service deliveryTo ensure Accountability, transparency and full information exchangeTo ensure compliance with national and international standards of bankingPEST Analysis:PoliticalThe political environment in Saudi and Kuwait is critical for the operations of thebusiness.

There is political stability and clear regulations on financial institutions. Thegovernment and international regulations on financial institution are well stated and there are no barriers to the activities of the bank.EconomicSaudi economy is doing well and the bank targets clients that are doing business withInternational firms. It targets the Saudis who do business in UK. Saudi is a oil rich nation and there are many multinationals that have business in the country, they are also the main focus for the bank.

SocialBanking in Saudi has been a new trend where people from the Islamic community areaccepting banking services. The bank as its programs tailored to fit into Sheria the Muslim teaching. It is the reason that the company targets high income earners and business Saudis because they have changed to banking system service.TechnologyThe debit card and the credit cards are the key technology services that the bank hasrealized great profits in 2011. It is estimated that transactions of debit card contributed 7% to the annual earnings.

External Analysis– Porter’s Five Forces:Barriers to entryThere are no barriers for the company to expand its services to other ranches in the country. The strategic direction of the bank projects opening up of more branches and targeting female high income. There are many options available for the company such as partnering with otherInstitutions to offer the services. .The Bargaining Power of SuppliersThe bargaining power of the suppliers is high, the customers who deposit money, mortgage, loans, the interest rates.

The bank suppliers of the money demand high level of accountability and interest rates.The Bargaining Power of BuyersThe bargaining power is high for the buyers since they can switch to other services.The buyers in this case the loan seekers, mortgage and other withdrawal services. The debit and credit card users demand high level of security for the cards they use. Availability and reliability of the services is critical for the buyers.Competitive RivalryThe financial institution gets competition from other institutions.

The bank is ranked fifthin card payment transactions and it has a value share of 60%. It means there are other top banks in Saudi that offers better services. Charge card transaction competitive position is at number 4,with 5.4% value share, the debit transactions has a value share of 7.3% and it is also ranked 4 and the credit card transactions has 5.6% value share where it is ranked 7th.The Threat of SubstitutionThere is threat of substitution where consumers can change mortgage support. Other low interest ending firms and better charges on credit card.

OpportunitiesNew segmentation since as the market for women banking. The technology associated services is another opportunity where customer loyalty can be improved.ThreatsThe housing finance and other financial institutions that offer loans and financial transactions are the major threat.Market Segments AnalysisThe market can be segmented based on gender such as female and male customers. The bank focuses on another market of business class where it offers services mainly tobusiness class. The bank has over 980 ATM and 189 branches in Saudi Arabia.

It means that the bank has a wider market segmentation.Brand AnalysisThe bank is a strong brand with many branches hence greater presences countrywide with branches in London.Brand PositioningThe brand is positioned as the brand for high income earners and the best credit cardprovider with best services which can only be attained from the high income group.Market shareThe company has small market share is has low ranking of position five and seventh position.The market share value is 60 percent which is slightly more than half the entire market.

Overall evaluation of the external environmentArab National Bank has a good external environment where there is a healthycompetition and it has a good position on the market with well networked infrastructure.Internal Analysis:Organizational strategyThe bank has put in place plans to target female consumers but starting only women branches that targets high income women. The cards that the bank offers has a wide range of services that meet the customer needs. The company is also venturing into technology by having touch screen where it offers credit to customers to purchase the devices.

Value chain analysisArab National Bank has several branches and outlets that offer services across the company. There is value addition were the bank is looking at improving its infrastructure.StrengthsThe bank has large network of the branches hence introducing new products and services can be effective for the larger market.Weaknesses The key weaknesses of the bank include: few women in the top management of the bank, no formal and definite mission and undifferentiated products and servicesOverall evaluation of the internal environmentThe internal environment for Arab National Bank is well defined processes that include well management of commercial and Islamic products and services which include both local and foreign exchanges.

Key Success FactorsThe bank should be able to access the wealthy women and nurture and maintain the relationship over an extended time period.The bank must have skilled and qualified personnel that ill build the relationship that will essentially be founded on trustThe bank must respond quickly to the customer’s requirements, services and products must be made available There must be both technical and operational support to respond to the market demandsAlternatives (Strategic Choice of Business Strategies and Corporate Strategies)The bank has a range of prices and interests that are decided by the Central Bank.

The bank also strategized on bringing services closer to the customers through establishment of more branches in remote areas. RecommendationThere is need to improve on the business processes through the introduction of more mobile technologies that can liberalize business transactions Action PlanThe bank plans to create a community awareness on the emerging technological changes to ensure customers are aware of the organizational changes as they are part of the business strategy.Contingency PlanThe bank is committed in implementing a well-structured contingency plan to counter the risks that may be associated with system breakdown and data loss due to natural or human-based activities.

Data and power backups are in place at different locations to ensure these risks are handled appropriatelyReferences:http://www.ukessays.com/essays/management/swot-and-pest-analysis-of-anb-management-essay.php#ixzz3XVkK9xKvAnalysis of Wal-MartCurrent SituationCurrently Wal-Mart de Mexico is doing well and it is the leader in the retailergrocery. The company is experiencing strong growth because of the strong customerSegmentation and the strategy of the company towards expansion. The company has introduced the use of private labels which are becoming more popular in Mexico.

Wal-Mart has adopted small product packaging in order to attract middle-class and low income consumers.IssueBusiness operationMissionThe mission statement is “We save people money so they can live better.” ObjectivesThe company objectives are to expand to more markets in Mexico and offer services to many Mexican low-income consumers through small-sized packaging.PEST Analysis:PoliticalMexico is a country with stable political environment. It also has legal systems in place offers better services to international companies.

The US-Mexico trade agreement further gives Wal-Mart an opportunity with fewer barriers. Corruption in Mexico is a challengeEconomicThe Wal-Mart in Mexico is targeting low income consumers. It is a large market with people who have been left out of the supermarket type of business. It also has branches in the country that target middle-class and high-income earners. Mexico has an economy that has been growing rapidly. There are many people moving from low-income class to high income class. The demand for health products and foodservices in increasing as many people are able to earn more.

Social Wal-Marts international operation should operates according to local culture of host countries. It includes population growth, age distribution, career attitude and emphasis on safety. Trend of host countries affect demand of Wal-Marts products and servicesFind out more from UK Essays here: http://www.ukessays.com/essays/management/swot-and-pest-analysis-of-wal-mart-management-essay.php#ixzz3XVQksh87TechnologyOnline stores and the use mobile apps. The low income store with small size packaging does not use online stores or e-commerce.

Lack of access to internet by consumers.External Analysis– Porter’s Five Forces:Barriers to entryMedium to high small scale shops that offer products to low income consumers. There is high economy of scale. Distribution systems must be effective and precise.The Bargaining Power of SuppliersThe suppliers have low bargaining power, most of the products are purchased in large quantities from the suppliers, low switching cost, there are a lot substitutes.The Bargaining Power of BuyersLow, there is small purchase from consumers there is large number of consumers where individuals are the main customers.

Competitive RivalryThe retail industry has many competitors both in the USA and around the world. Although Wal-Mart is a market leader in USA and around the world, there is high competition in this sector. Due to competition price is used as a competing variable and Wal-Mart is known as an outlet that offers lower prices for its products, this has made the organization to have many clients.The Threat of SubstitutionHigh substitute from other retailers and small scale sellers. Very high substitution pricesand quality of product substitute is highly competitive.

OpportunitiesWhen any countrys government invites foreign investment with new trade agreements, businesses like Wal-Mart have ability to offer products and services. This simply increases the markets available to retailers. Wal-Mart offers all products under private labels. Expanding brand portfolio, Wal-Mart incurs lower operational costs, high quality product and gaining higher margin. Wal-Mart has tremendous opportunities for future business in expanding consumer market by acquisition, merge with, or form strategic alliances with other global retailers.

Social, cultural, demographic and environmental Aspect:To fulfill obligation or responsibilities towards social and culture, Wal-Mart announced plans to open in - store clinic The Clinic at Wal-Mart to be connect with local hospitals in February 2008. The company could leverage rising health care spending in the US to boost revenues of its pharmacies and health clinics.Find out more from UK Essays here: http://www.ukessays.com/essays/management/swot-and-pest-analysis-of-wal-mart-management-essay.

php#ixzz3XVR8KBRy Threats increasedWage expenditure on workers, high number of employees, labor costs, changes in commodity prices and high inflation rates.Market Segments Analysis Wal-Mart has segmented its market into low income earners, middle-class and high-income earners.Brand Analysis Brand image is not very strong compared o others on the market.Brand Positioning the brand is being positioned as a low income brand with ability tohave private labels to be associated with the local market.

Market share 2014 with a 31% has huge presences in retailing and hypermarket.Overall evaluation of the external environmentGood external environment for the companyInternal Analysis:Organizational strategy private able and small size packagingValue chain analysisHuman resource management and development of technology for procurement and service logistics to the consumers.StrengthsStrong market presence in Mexico, have many services and product hence strength in diversity, low prices and convenient prices.

WeaknessesLow global presence,Overall evaluation of the internal environmentGood internal environment for growth and improvement.Key Success FactorsExpand to new markets geographically, regulations and laws of country, cultural barrier.Alternatives (Strategic Choice of Business Strategies and Corporate Strategies)Strategic alliance and increase competitionRecommendation Wal-Mart is the largest retail firm in the world with strong market position in the US. The companys strong market position in the US provides economies of scale and enhances the brand image to the company.

It derived almost 75% of revenue from the US market. However, the company faces stiff competition with local players which can adversely affect the revenue and profitability of Wal-Mart.Find out more from UK Essays here: http://www.ukessays.com/essays/management/swot-and-pest-analysis-of-wal-mart-management-essay.php#ixzz3XVUQHeZfAction PlanReach out groups, communities and individual in the Islamic world creating campaigns about what Wal-Mart can doContingency PlanWal-Mart has put plans to make its business continue smoothly in case of nay disaster due to data loss or power inconsistencies.

There are data and power backups stationed at different locations to support thisReferences http://corporate.walmart.comAnalysis of StarbucksCurrent SituationCurrently the company has about 60% share of the market in the US for coffee shop. There were several locations closed during the recession in the US but the company has put in strategies toensure it revives its business. Some of the strategy that the company has put in place include; buying out of other businesses in the USA such as the Teavana tea shops and the La Boulange Bakery that are non-coffee restaurant.

IssueThe company is facing competition from lower-priced products. It has declined the expansion plans of the company and the market share. Recession reduced the Starbucks habit because of theeconomic crisis. The fast food shops have also improved their coffee to ensure that they retain their customers. McDonald’s McCafe is an example of businesses that are working towards improving their coffee and offer improved products at lower prices.Mission The mission statement is “To inspire and nurture the human spirit – one person, one cup and oneneighborhood at a time.

”ObjectivesThe company aims at becoming the international coffee specialist shop internally. It wants to take over the coffee market and offer leadership in the coffee industry.PEST Analysis:PoliticalThe USA based company is based in an environment that is stable politically. The USA has two main parties where people are identified as either republicans or democrats; they are parties with extreme views on political matters and the agenda of the nation. However, the political environments are suitable for the growth of the Starbuck businesses.

The current Obama administration is working towards recovering the economy where the country has seen positive growth because of political will. Having a stable political environment means having the chance to come up with legislations that help the companies such as Starbuck in expansion process. Having an enabling environment for doing business is essential for the company. The political factor of close scrutiny of multinationals in the US and the source of raw materials is essential. The taxes and regulations of the government also affect the company business.

EconomicThe recent recession period as a result of global economic crisis reduced the profits andexpansion strategies of the company. Buyers have also shifted to cheaper brands because of economic crisis. However, consumers did not stop buying coffee but only shifted to the alternative brands that were considered cheaper.The level of taxes in the US for multinationals and the exchange rates of the local currency are other factors that may affect the business.SocialStarbuck product is regarded as an expensive brand where offering cheaper products means compromising with the quality of its products.

The concept of socio-cultural is a challenge especially to the new shops that the company is acquiring. The company has to deal with the aspect of lower and middle-income consumers from the acquired outlets. There have also been concerns about the methods of getting raw materials for production of coffee.TechnologyThe technology has been changing in the production of the company. The mobile ordering app was launched in mid-2014. It is one of the approach that the company is utilizes. Mobile ordering and payment platform using the mobile application is regarded as the future of the company.

The use of a single-brew coffee machines for the K-Cup products through instant coffee and Fresh juice blends. Free Wi-Fi offered to consumers with laptop computers or other internet-enabled devices is a technological strategy.External Analysis– Porter’s Five Forces:Barriers to entryThe company has barriers to entry in areas where consumers are offered lower-priced coffee products. The is issues of tax and regulations for multinational firms that limit entry into the market. Starbuck has adopted a new strategy of buying out already established businesses as a way of making its presence in the company.

The Bargaining Power of SuppliersStarbucks roasts its own coffee, it grounds, brewed and served to its outlets. Starbuck is the sole supplier of the coffee to its franchise and the own company outlets. The company also roasts its coffee for Starbuck brand hence it has high bargaining power of the suppliers.The Bargaining Power of BuyersThe consumers have low bargaining power since other companies do not meet thequality. The prices are fixed and those who are used to the high quality coffee have no other choices because other coffee products have lower quality.

The Starbuck brand is a strong brand that has a large market.Competitive RivalryLow priced products and fast food outlets. McDonald’s realized that most of itscustomers are going to Starbuck hence improved on the quality of their coffee in order to retain the customers.The Threat of SubstitutionFresh juice and espresso-based beverages that are lower priced can be the replacement for Starbuck brand.OpportunitiesThe company has an opportunity to improve on the consumption of those who changed their Starbuck consumption habits.

The company has the opportunity to introduce new products to meet the demands of the consumers such as the handcrafted sodas.ThreatsEntry of new lower priced coffee products and introduction of coffee in the fast-food stores is a threat to the business. The slow growth and improvement of the economy is also a threat where people are reducing the consumption of Starbuck products.Market Segments AnalysisThe market is well segmented where the products targets high income and middle-classincome earners.

Brand AnalysisThe company is ranked as the specialist coffee shops at number 1 where it has a 59.9%share value of foodservice. The company had a share of the value of coffe shop brand in the US at 60% in 2013.Brand PositioningThe brand has positioned itself as the premium brand where high techniques of coffee roasting and brewing are used.Market shareThe company has a large share market of 74% of the sales in 2013. The company has a large command of the market share in UKOverall evaluation of the external environmentThe company has good position and its external environments is favorable for thecompany.

Internal Analysis:Organizational strategyThere are strategies to ensure that company recovers its market. Adopting more premium position by producing premium products of high value using high techniques for roasting and brewing is one of the strategy. There are several initiatives that the company has been lunching of low-calories meals that have health ingredients of Bistro Box in 2011 is an example of the initiatives to gain back its lost market share.Value chain analysisGetting licenses and working with large fast-food firms in the US has been one of the valueadded.

The company further has acquired chains that traditionally are non-coffee such as juice and tea shops on the market.StrengthsThe products are of high quality and premium products that competitors cannot not meet. Its customers can only reduce consumption but they cannot stop consuming the beveragescompletely.WeaknessesThe market segment is only of a small class of the larger market. The premium products are only consumed by high income earners.Overall evaluation of the internal environmentThe company has a health internal environment that can enable it to deal with the external challenges.

Key Success FactorsConsidering lowering price of the product in order to attract middle class consumers is the success factor for the business. Strengthen the premium brand and ensure the premium clients are retained.Alternatives (Strategic Choice of Business Strategies and Corporate Strategies)One of the key strategy that Starbucks followed since its inception is that of product differentiation offering differentiators such as premium product mix, locations, coffee beverages reputation and supreme customer service that translated to building a premium valued brand which is costly to imitate for competitors.

Starbucks has also followed a shrewd strategy of strategic alliance and making smart acquisitions. Starbucks didn’t follow franchising model and operated company oriented stores and joint ventures in international markets.RecommendationStarbucks already has made good advancements into the Chinese market but there is still unexploited potential growth of these markets. Starbucks must remain relevant to the customer demands in order flourish in these marketsAction PlanThe action includes the measures that have been put in place to recover from any kind of crisis with minimum damage to the organization, the community and the brandContingency PlanStarbucks has put in place a strategy to mitigate price volatility to significant and high quality products like coffee beansReferenceshttp://www.

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