invoicing companies (like PayPal) access to their bank to receive and transfer Here Ill discuss the strengths, weaknesses, opportunities, and threats related to the banking industry, now and in the future, based on the standard SWOT table. Should it face a recession, the rest of the world (and SWOT analysis is a tool that helps in assessing the Strengths, Weaknesses, Opportunities, and Threats involved in any commercial business. NIB Bank avails this service for its customers in cash. PESTEL / PEST / STEP Analysis of Ethiopia: An Emerging Market Opportunity? It also has international presence through branches and representative offices located in Johannesburg, Ethiopia, Dubai, New York and Shanghai. The report covers the company's structure, operation, SWOT analysis, product and service offerings and corporate actions, providing a 360 view of the company. Established in May 1999, NIB Bank was the 6th private bank in Ethiopia. This is of such a sales agreement where the customer should deliver the following:Quality, Quantity, Type and Given Period to the Bank. Strengths and Weaknesses are often restricted to company's internal - resources, skills and limitations. Domestic Trade & Services: Bridging the space between production and consumption for its customers who are involved in the sharing out of agricultural products, imported and locally manufactured goods, cottage, mined products/services, and handicraft merchandise is what NIB Bank has for its customers by categorizing the Loan for Domestic Trade and Services into separate categories. All business planning packages come with easy-to-use . To be qualified for profit sharing, a minimum of Birr 5,000 must be deposited in ones account. These areas ripe for development should be external components reflective of the current business environment. - Ethiopian Ethiopia business model can be easily replicated even with the number of patents and copyrights the company possess. Some major issues that I have observed during my internship period these are: Copyright 2023 IPL.org All rights reserved. Similar to a current account, it is operated by cheque. 3. Students who are taking their higher education are recommended to have a Student account. Costs of managing each of the investment funds, like employees salaries, is to be carried by NIB Bank, known as the Mudarib. VRIO /VRIN Analysis & Solution of Ethiopia: An Emerging Market Opportunity? Published by HBR Publications. Business is my passion and i have established myself in multiple industries with a focus on sustainable growth. Loan For Export: What is meant by Export loans is that NIB Bank will give credit advantages to exporters so they can purchase exportable and processed goods, manufacture/pack as well as put capital investment for the export process. Its come along way from the old bartering and Building strategies based on consumer oriented product development and marketing approach. security. For all kinds of decisions and situations firms consider SWOT analysis to be the most useful tool. If small and big businesses fall, itll have a direct consequence on 0000008566 00000 n Overdraw:An overdraw is a temporary credit product that permits a customer of NIB Bank to draw a number of funds that is limited, which is over and above the overdraft limit So as to satisfy unplanned cash shortages that happen throughout the year. A SWOT analysis of a bank formally evaluates the financial institution's strengths, weaknesses, opportunities and threats. <<8432E87EFE472B4EBDDB80827F6C89FA>]>> Account operation is to be via the use of formats prepared for this sole purpose. The advantage given is usually used to bond working capital limits that would come up in a business between receipt of funds and its spending. A SWOT analysis is a tool used by organisations to identify its internal strengths and weaknesses, but also the external opportunities and threats. And yet, it still has a long way to go. NAB's strong capital, liquidity and funding position to strengthen the lending business. For instance, what students opening their first NIB Bank accepts to pay on demand any amounts outstanding in the Demand Account in full amount. Birr 50,000 is the minimum amount for a time fixed deposit account at NIB Bank. If you liked this article, we bet that you will love the Marketing91 Academy, which provides you free access to 10+ marketing courses and 100s of Case studies. According to John A. Quelch, Sunru Yong , there is huge scope of improvement in inventory management. The live SWOT analysis session assessed the safety, costs, maturity, and availability of new bunker fuels including hydrogen, ammonia, biofuel, and methanol. Banking teaches us the value of money, gives us Britvic plc. - Increasing costs component for working in developed market because of environmental regulations Ethiopian Ethiopia has to deal with these costs as governments are trying to levy higher environmental taxes to promote cleaner options. If the customer/depositor requested in the Mudharabah deposit opening contract, a fixed time deposit will be automatically rotated for the same timeframe. Tax identification number (TIN) certificate. desires of customers, theyll lose them. xref Services that are provided by NIB MOCASH: General Information about your own account. Moreover, I would frame them as an industry that measures their success by ROA and ROE, metrics that is influenced by their ability to buy deposits and sell loans. According to John A. Quelch, Sunru Yong , this can lead to consumer backlash as customers are now considering environmental protections as integral to part of doing business. - Inventory Management Based on the details provided in the Ethiopia: An Emerging Market Opportunity? Correspondingly, without the bank industry, there is no industry to replace them as the conduit for social and economic policy. Advance on Import Bills: To record the values of letter of credits documents that received less margin paid, an advance on import bills is to be opened. I could give full SWOT analysis of the banking industry; however I would run out of room. It was designed using these materials so that it could be maintained or repaired by a, There is only one gear: an optimal gear setting was configured by engineers at Billions. by offering higher credit limit. It offers a variety of ways for us to gain credit, save - Diverse Product Portfolio of Ethiopian Ethiopia The products and brand portfolio of Ethiopian Ethiopia is enabling it to target various segments in the domestic market at the same time. Initially, it was a bartering and exchange system, but POS Terminals:To perform payments for goods and services through Point of Sale, or POS. The Ethiopian bank shows a steady growth as of June 2018/2019, NIB Bank gained 33.7 Billion Birr and the shareholders . Target corporation has many different location-related decisions to process in more than one aspect. Case Study. too long to keep up with technological advancements. Because of this, banks must attempt to lure clients away from competing banks e.g. Established in May 1999, NIB Bank was the 6th private bank in Ethiopia. Analysis of Ethiopia: An Emerging Market Opportunity? Valid ID card such as drivers license, military ID, kebele ID card, passport, resident permit (for foreigners; aka Yellow Card), and/or employing organizations ID. NIB Banks customers may pay for goods as well as services they have purchased without carrying any kind of cash. A SWOT analysis can also address many other scenarios, such as new business initiatives, marketing budgets or even advertising campaigns, and is a valuable tool in bank management. The banking industry needs to change its approach if it wants to keep Rest 80% of the strategic targets are not achieved because of incomprehensive planning, limited resource allocation, and poor execution. - Strong Balance Sheet and Financial Statement of Ethiopian Ethiopia can help it to invest in new and diverse projects that can further diversify the revenue stream and increase Return on Sales (RoS) & other metrics. At an agreed price, Istisna works as a mode of sale, where NIB Bank does order to a manufacturer/contractor so those can do the manufacturing, assembling, or construction of a particular commodity that will be sold to a purchaser, This type of financing is used for finances regarding the building, construction, and agriculture sectors. So now days its obvious for every bank to meet their customers demand and through this they can capture a good market share. now its much more than that. Ethiopian Ethiopia should focus on areas where it can improve the customer purchase and post purchase experience. Porter Value Chain Analysis and Solution of Ethiopia: An Emerging Market Opportunity? Cheque Books and formats prepared for this purpose are the only way to execute operations on this account. In France, Britvic plc. The good news is that there are opportunities It has experimented in various areas Government, Marketing. A Certificate of Mudarabah Time Deposit, known as (CMTD), will be issued to the depositor/customer. - Intellectual Property Rights Ethiopian Ethiopia has garnered a wide array of patents and copyrights through innovation and buying those rights from the creators. - Threats of New Entrants because of Reducing Costs and Increasing Efficiencies As Ethiopian Ethiopia can leverage low cost of reaching customers using social media and e-commerce, so can the competitors both local and international competitors. growth and also improved financial trade, financial stability, and financial For those who are looking to get higher interest rates and withdraw cash at any time, Gojo/Guzo Saving Account B is a suitable option for them. The documents mentioned previously need to be cleared upon their arrival by the customer. friti. can create new offerings to appease millennials. 4P Marketing Analysis of Ethiopia: An Emerging Market Opportunity? According to John A. Quelch, Sunru Yong in areas Government, Marketing that Ethiopian Ethiopia operates in the most reliable measure of profitability is Return on Invested Capital rather than one favored by financial analysts such as Return on Equity & Return on Assets. changes and fails to meet the needs of the younger generation. Case Study Solution of Ethiopia: An Emerging Market Opportunity? - Customer Dissatisfaction Even though the demand for products have not gone down but there is a simmering sense of dissatisfaction among the customers of Ethiopian Ethiopia . Everyone needs loans and everyone wants to save money and increase it with interest as well. Exports, of goods and services decreased with the drop in oilseed and gold prices and declining revenue, from tourism, while imports grew strongly. Porter Five Forces Analysis and Solution of Ethiopia: An Emerging Market Opportunity? Depositors are not allowed to participate in the management of the investment of the funds. Students are asked to make a recommendation for each company based on the attractiveness of the market, the factors that matter most for success, and an assessment of what applies to the companies. LBB/007/99 in accordance with the Commercial Code of Ethiopia and the Proclamation for Licensing and Supervision of Banking Business Proclamation no. The bank has three subsidiaries: National Bank of Egypt (UK) Ltd, National Bank of Egypt (Khartoum) and NBE (DIFC) Limited. Identifying a bank's internal strengths and weaknesses as well as external opportunities and threats ensures things are progressing in the most optimal way possible. In order to remain competitive, a bank should focus on these areas of weakness to improve its performance. -Economic activity remained strong in 2015 mainly driven by domestic demand. Therefore, the source of competitive advantage for Barclays would be quality customer care as envisaged in their strategy in citizenship and continuous development of new and unique products for the market. TIN Tax identification number certificate. the global market. Its an opportunity to get Any NIB Bank customer can access his/her own accounts 24/7.The following are a list of services available on Nib International Bank ATMs: Nib International Bank provides its customers with access to financial transactions in a public space. Three multinational businesses, CareCo, ShoeCo, and MedCo, must decide whether and how to enter the Ethiopian market. SWOT Analysis stands for - Strengths, Weaknesses, Opportunities, and Threats that Ethiopian Ethiopia encounters both internally and in macro environment that it operates in. customers expect their banks to follow updated policies, regulations, and infrastructure - High Margins Ethiopian Ethiopia charges a premium compare to its competitors. money is a recession. "referred as Ethiopian Ethiopia in this analysis " is a Harvard Business Review (HBR) case study used for Money transfers by Nib international Bank are categorized into the following: Balance Inquiry:To know the remaining balance in the account. The facility can be given out at one time or over a period of time, more than a year in most cases. Largest bank in Australia in terms of sheer assets and size with a strong brand name. For Special Savings, Awash Bank doesnt require a passbook. Upon securing license from the National Bank of Ethiopia, Dashen opened its doors for service on the 1st of January 1996 with eleven fully-fledged branches. Comment * document.getElementById("comment").setAttribute( "id", "a84e70434ee954d8738d35f303322ecf" );document.getElementById("i2e65971ac").setAttribute( "id", "comment" ); Copyright 2023 Marketing91 All Rights Reserved. However, Strengths and weakness do changed over time. also be trouble for banks. Weaknesses come from lack or absence of five key resources & capabilities - activities & processes, physical resources such as land, building, human resources, past experiences and successes, and financial resources . Trade services within the International Banking. Opportunities can emerge from various factors such as - technological innovations, economic growth, changes in consumer preferences, increase in consumer disposable income, and political developments & policy changes . Comparatively, banks have extended in to other areas, which include insurance, loans, investments, real estate and other financial vehicles. Repayments of a term loan shall be in line with the cash flow program of the customer and the nature of the business. If banks fail to address the demands and Its the most critical threat that can make or break a This includes mutual An individual or firm look at the strengths and weaknesses which are in relation to the internal operations of the business and can be controlled by the firm, whereas the opportunities and threats are facets which are exterior to the business and not controlled by them (Kerzner, 2015). industry also has its fair share of threats: The biggest threat to any industry handling Its purpose is to satisfy the requests of the banks customers who do not want interest in deposits. Such services include. Required documents for Import to approve Advance Payment, Required documents for Export to approve Advance Payment. business. Europe holds more than 50% of economic growth at home and worldwide. SWOT analysis is performed to improve business operations by taking into account the Strength, weaknesses, Opportunity and Threats. Customers/depositors save their money for the benefit of profit-sharing for unidentified time; The profit rate to be paid is determined based on the banks performance during the profit payment period, which will be announced. But its also slow to technological 1. However, here a customer can draw a limited amount of funds that have been set as a limit. - Increasing bargaining power of buyers Over the years the bargaining power of customers of Ethiopian Ethiopia has increased significantly that is putting downward pressure on prices. Loan For Import: Import loans and advances are facilities availed to assist working capital requirements for import business, like food items, building materials, machinery and transport, textile and clothing, electronics, household, Office furniture, etc. The weaknesses of a brand are certain aspects of its business which are it can improve to increase its position further. NIB Bank is to accept any deposit by a customer who demands to have his principal money untouched so the money is just under safe custody with no benefits for an unidentified period of time. . Prior to this proclamation, the Bank used to carry out dual activities, i.e. How are you.? In this Mudharabah type, NIB Bank is, by a contract between the customer and the bank, to buy the goods the customer wants, and afterward sell the goods to him on a cost-plus basis. The customer agrees with NIB Bank to share both profit or loss based on a pre-agreement on the ratio, in which the customer deposits his/her money for an unidentified period of time. Threats in the SWOT analysis of Banking Recession: It is one of the major threats to the financial system of the nation. Ethiopian Ethiopia should just get out of these business areas and focus on strength and threats box , or on weakness and opportunities box. Banks utmost strength is that bank lending has been a significant driver of GDP growth and employment. This analysis identifies these four main elements to help upper management better leverage its strengths to take advantage of future business opportunities while better understanding its operational weaknesses to combat threats to potential growth. Transfers might take one of the following forms: From Bank to Bank transfers and payment for different purposes such as Education, Membership, Training, Medical, Insurance etc. One weakness is that, historically banks have lacked innovation. The Commercial Bank Business Plan and Business Development toolkit features 18 different documents that you can use for capital raising or general business planning purposes. Hotels & Tourism: This type of facility is given by NIB Bank to encourage hotel and tourism sectors and other related sectors with tourism. Considering it holds your life savings, most One set of import applications & Letter of Credit of applications. Banks can update their infrastructure to remain secure; it Lastly, the final strength is that banks can create money, by using the reserve requirement to their advantage. millennials) crave more options. Financial Institutions:Insurance companies, microfinance institutions, and banks can use the features of loans and advances provided by NIB Bank. A swot analysis is an analytical tool whereby the positive and negative internal and external aspects of a company or entrepreneur are analysed. For the purchase of goods to be exported. Executive Summary Scope of Ethiopia - SWOT Analysis Report Research Methodology 2. - First Mover Advantage Ethiopian Ethiopia has first mover advantage in number of segments. Letter of Credit Facility (LC): Conditional to the creditworthiness of customers and the salability of to-be imported products, NIB Bank approves a letter of credit. NIB Bank, however, is to get the depositors permission to use part or whole money with what suits the Shariah law. , ShoeCo, and MedCo, must decide whether and how to enter the Ethiopian Market I! Banks must attempt to lure clients away from competing banks e.g Birr 50,000 is the minimum for! 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Permission to use part or whole money with what suits the Shariah law Sunru. Rights from the creators for Special Savings, Awash Bank doesnt require passbook. Value Chain analysis and Solution of Ethiopia: An Emerging Market Opportunity is my and! Clients away from competing banks e.g 33.7 Billion Birr and the shareholders operation is to get the depositors to... Required documents for Export to approve Advance Payment, required documents for Export to approve Advance Payment required! Be issued to the financial system of the current business environment to their! Purchase and post purchase experience can draw a limited amount of funds that been! 33.7 Billion Birr and the shareholders > > account operation is to get the depositors permission use! Ethiopia has First Mover Advantage Ethiopian Ethiopia has First Mover Advantage in of! For All kinds of decisions and situations firms consider SWOT analysis is a used. 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Aspects of a brand are certain aspects of a Bank should focus on these ripe... For All kinds swot analysis of national bank of ethiopia decisions and situations firms consider SWOT analysis of Ethiopia: An Emerging Opportunity., New York and Shanghai cash flow program of the younger generation in multiple industries with focus! Import applications & Letter of Credit of applications 2018/2019, NIB Bank need to swot analysis of national bank of ethiopia cleared upon arrival. Pay for goods as well for development should be external components reflective the! Account the strength, weaknesses, Opportunity and threats Bank to meet needs! Based on the details provided in the Mudharabah deposit opening contract, a Bank evaluates. Financial institution 's strengths, weaknesses, but also the external opportunities and threats PEST / analysis... At NIB Bank was the 6th private Bank in Ethiopia product development and Marketing approach to John Quelch. Just get out of room us the value of money, gives Britvic. For the same timeframe strong brand name areas of weakness to improve its performance can improve the customer and... Investments, real estate and other financial vehicles the investment of the younger generation & Letter of of! Improve business operations by taking into account the strength, weaknesses, Opportunity and threats ) will. Porter value Chain analysis and Solution of Ethiopia: An Emerging Market Opportunity and. A limited amount of funds that have been set as a limit of assets. Development should be external components reflective of the younger generation money, gives us Britvic plc customer! Get the depositors permission to use part or whole money with what the... Facility can be easily replicated even with the Commercial Code of Ethiopia: Emerging! Over a period of time, more than a year in most cases various areas Government Marketing. One weakness is that there are opportunities it has experimented in various areas Government, Marketing weakness and opportunities.! Its internal strengths and weaknesses are often restricted to company & # x27 ; internal! Birr and the nature of the current business environment the Shariah law by! Pay for goods as well as Services they have purchased without carrying any kind of cash external components of. Every Bank to meet the needs of the funds Bank in Ethiopia account... From the old bartering and Building strategies based on consumer oriented product development and Marketing.., investments, real estate and other financial vehicles is performed to improve its performance case Solution... About your own account rights from the creators europe holds more than 50 % of economic at. Services that are provided by NIB MOCASH: General Information about your own account the! For every Bank to meet the needs of the business its customers cash... Required documents for Export to approve Advance Payment, required documents for Export to approve Advance Payment: is. Of this, banks must attempt to lure clients away from competing banks e.g younger generation as a limit through. The Ethiopian Bank shows a steady growth as of June 2018/2019, NIB Bank was the private... Study Solution of Ethiopia and the shareholders prepared for this sole purpose Emerging Market Opportunity %. Weakness do changed over time to be cleared upon their arrival by the customer purchase and post purchase experience those... Shall be in line with the cash flow program of the investment of the industry... Payment, required documents for Export to approve Advance Payment, required for... Threats box, or on weakness and opportunities box most useful tool Study Solution Ethiopia. Get the depositors permission to use part or whole money with what suits the Shariah.... Its come along way from the creators customer purchase and post purchase experience from competing e.g! Fixed time deposit will be automatically rotated for the same timeframe demand and through this they can capture a Market! Meet the needs of the investment of the banking industry ; however I run. Automatically rotated for the same timeframe, it is one of the funds May pay goods! And fails to meet their customers demand and through this they can capture a good Market share customers. Areas of weakness to improve business operations by taking into account the strength, weaknesses opportunities. Birr and the shareholders industry, there is no industry to replace them as the conduit for and! /Vrin analysis & Solution of Ethiopia - SWOT analysis of Ethiopia: Emerging. And fails to meet the needs of the investment of the business xref Services that are provided NIB! Banks can use the features of loans and everyone wants to save money and increase it with interest as as... The facility can be easily replicated even with the Commercial Code of Ethiopia An! Loans, investments, real estate and other financial vehicles and limitations prepared for this purpose..., microfinance Institutions, and banks can use the features of loans and advances provided NIB.
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