Origin and Business of CBI and QNB - Assignment Example

CBI and QNB Table of Contents Summary 3 Company origin and business 4 Mission and vision of CBI and QNB 4 Strategy Choice 5 SWOT analysis of CBI and QNB 6 Strategy implementation 7 Strategy Evaluations for CBI and QNB 8 Strategy recommendations 9 References 9 Summary This essay mainly focuses on the origin and business operations of the Commercial Bank International (CBI) of United Arab Emirates and Qatar National Bank (QNB) of Middle East. Moreover, the assignment also focuses on the mission and vision of the organizations of CBI and QNB so as to analyze their underlining desires and motives. However, in order to improve the demand of their banking product and services, increase sales and market share, the types of strategies used by the CBI and QNB will also be analyzed in an effective way. This study will also include detailed analysis of strengths and weaknesses of the organizations with the help of the most effective analytical tool, SWOT analysis. This assignment also highlights the implemented strategy that may increase its portfolio and reputation in their respective markets as compared to others. Furthermore, the implemented strategy will also be evaluated so as to analyze its effectiveness and to recommend the most effective strategy is also for the organizations. Company origin and business description The Commercial Bank International (CBI) of United Arab Emirates is a one of the budding commercial bank of United Arab Emirates. It is one of the reputed local brands established in the year 1991 offering a wide range of financial benefits such as auto loans, vehicle loans, credit cards enhancements and many more to its customers. This helped the organization to improve its market share and demand in the market of United Arab Emirates as compared to many other rival contenders. In-spite of being a public share holding company, it enhanced its reliability and loyalty within the minds of the local customers for its value-added services. The organization always tries to offer high valued products to its customers so as to improve their commitment and reliability. This is done in order to increase the sustainability and relationship with the customers that may amplify its brand value and profitability (Commercial Bank International, 2014). Similarly, Qatar National Bank (QNB) is established in the year 1964 as one of the first owned commercial bank of Middle East. It mainly offers a wide range of investment banking value-added services to its corporate and institutional clients with the help of its subsidiaries. This helped the organizations to expand it-self in numerous locations that amplified its dependency and reputations as compared to others (Qatar National Bank, 2014). Mission and vision of CBI and QNB The mission of Commercial Bank International (CBI) is to offer highly value-added and simple products and services to its target customers so as to improve its relationship with the customers. However, the vision of CBI is to become one of the leading financial institutes within the region of United Arab Emirates. Similarly, the mission of QNB is to become the best optional choice for the customers, investors, suppliers and employees. Moreover, it also desires to attain the maximum credit ratings so as to enhance its profitability and market share. Besides, the vision of QNB is to become the best financial institution within the region of Middle East and Africa (Qatar National Bank, 2014). Strategy Choice The strategy that needs to be implemented within the Commercial Bank International (CBI) is product or service innovation. With the help of this strategy, the organization might present varied types of inventive strategies as per the requirements of its target customers. This might help the CBI to amplify its customer base and reputation in the nation of United Arab Emirates. Moreover, the strategy of Product or service innovation might prove effective for the organization to enhance its relationship with the existing customers that may improve its sustainability and competitiveness in the market among other rival players. Similarly, Qatar National Bank (QNB) might try to implement the strategy of market penetration. This might prove effective for the QNB to improve its customer base and market share. Moreover, this strategy might also help the QNB to become the most dominant market leader in the industry of banking as compared to many other rival players. This may increase the profitability and total revenue of the QNB that might increase its brand recognition and portfolio. Besides, such type of strategy might also prove effective for the organization to amplify its shareholder’s value and trust over the brand as compared to others. SWOT analysis of CBI and QNB Strengths: High reputation: one of the most important strengths of CBI is high reputation. This is mainly due to its wide range of value-added products and services that proved extremely beneficial for the organization. Moreover, due to the presence of numerous high valued products such as auto loan, vehicle loan and many others, the inner trust and confidence of its target customers enhanced to a significant extent that amplified its market share and brand value. Similarly, the QNB also includes high dominance within the market region of Qatar. It is mainly due to its high credit ratings within the region of Qatar as compared to others. Numerous products: this is also another important strength of the CBI that helped it to increase its brand value and reliability within its customers. Similarly, the QNB also comprises of numerous products that proved effectiveness and recognition within the minds of the customers. So, it continued to capitalize its growth in European markets. High level of commitment towards the customers: CBI always offers high attention to its customers and so it became successful to attain a reputed position in the market of UAE among others. This helped the organization to expand in numerous new regions that amplified its profitability and total assets. Similarly, the QNB also tried to offer varied types of profitable services to its customers so as to enhance their value and trust. Weaknesses: Low brand recognition in global perspectives: the brand recognition of both the organizations, CBI and QNB is extremely low in global perspectives. This acted as one of the prime weaknesses that reduced their dominance among other global rival players. Opportunity: Trying to develop international brand image: in order to improve the reputation and brand loyalty, the CBI and QNB decided to expand in numerous international markets. This might amplify the customer base and dominance of the organizations of CBI and QNB. Improve customer bases by enhancing customer relationships: the organizations, CBI and QNB offer highest attention over customer relationship in order to amplify its customer bases and total revenues. Threats: Increased competition: increased level of competition within the segment of banking is considered as one of the most important threats for the organizations of CBI and QNB. However, in order to improve its profitability and reliability, the organizations tries to offer high valued products and services to its customers. This might prove effective for the organization to amplify their sustainability in long run. Development of varied types of inventive products: development of varied types of inventive products and services, by numerous new entrants increased the switch over costs of the customers. This reduced the reliability and market share of the organizations that declined its portfolio and image. Effect of changing values of the currencies: due to changing values of the currencies, the organizations such as CBI and QNB are highly affected. This declined their market share and prosperity as compared to many other rival players. Strategy implementation The Commercial bank international (CBI) might try to implement the strategy of product or service innovation. However, in order to do so, it might try to make partnership with varied other popular financial institutions. Then, it might grab an idea regarding varied other types of financial services such as housing loan, personal loan etc as desired by the customers (Commercial Bank International, 2013). Hence, the CBI might amplify its reputation and portfolio in the market that may increase its profitability and sustainability. Moreover, if such type of services is introduced by the CBI, then it might improve the relationship and reliability of the customers over the brand. This might prove extremely effective for the organization in long run in this age of extreme competitiveness. Similarly, the QNB might try to implement market penetration strategy so as to increase its dominance and leadership in long run. Moreover, such type of strategies might also increase the customer base and profitability of the QNB in long run that may amplify its consistency. Therefore, due to these causes, the above mentioned strategies might prove extremely effective for the organizations of CBI and QNB as compared to many other rival players. Strategy Evaluations for CBI and QNB By implementing the above mentioned strategies, the CBI might amplify its customer base. However, this might prove effective for the CBI to amplify its inner strengths and opportunities that may decline its weakness and threats. Moreover, by improving the customer base, the consistency and sustainability of the CBI might get improved to a considerable extent in this age of extreme bargaining power of the customers. Besides, the organization might also attain a recognized position and loyalty within the minds of the customers for offering value-added products rather than many other existing rival players. This might improve the brand image and trust of the customers over the organization in the market of United Arab Emirates. Similarly, the QNB might become successful in amplifying its reputation and position in global perspectives among others. Moreover, its reliability and dependency within the minds of the customers might also get improved to a significant extent that may amplify its profit margin and total equity. In addition, the mission to improve the values and consistency within the minds of the shareholders may also get fulfilled. But in order to do so, the QNB needs to make various new alliances with many other reputed players. Strategy recommendations Improvement of relationship with the customers: implementation of the strategies of product innovation and market penetration might increase the bonding with the customers. This might also increase their trust and dependency that may reduce their switchover costs. Thus, retention of the customers might improve the prosperity and profitability of the banking institutions in this aggressive age among other rival players. Improvement of brand value and market share: implementation of these strategies might improve the brand value and market share of the organizations of CBI and QNB that may reduce its threat of new entrants and introduction of new products and services. Thus, due to these reasons, implementation of these strategies is extremely essential in this age. References Commercial Bank International. (2013). Commercial Bank International unveils new identity signalling the bank’s strength going forward. Retrieved from: http://www.cbiuae.com/AboutCBI/News/36. Commercial Bank International. (2014). About me. Retrieved from: http://www.cbiuae.com/AboutCBI. Qatar National Bank. (2014). History. Retrieved from: http://www.qnb.com.qa/cs/Satellite/QNBQatar/en_QA/AboutQNB/enQNBHistory. Qatar National Bank. (2014). Vision and Mission. Retrieved from: http://www.qnb.com.qa/cs/Satellite/QNBQatar/en_QA/AboutQNB/enVisionandMission. Read More