SWOT Analysis
Area of Core Competencies
Conclusion and Recommendations
1894 Incorporated in Liverpool as British Bank for West Africa.
1969 Incorporated Locally as the Standard Bank of Nigeria Limited.
1971 Listed on the Nigerian Stock Exchange. 2002 Established First Offshore Financial
Subsidiary of Nigerian Owned Bank in UK. 2005 Acquired Two Banks; MBC
international Bank Limited and FBN (Merchants Bankers) Ltd.
2007 Floated First Ever Hybrid-Capital Offering Out of Africa. (www.firsrbanknigeria.com)
Vision: “To be the clear leader and Nigeria’s bank of first choice”
Mission: “To remain true to our name by providing best financial services possible”
(www.firsrbanknigeria.com)
LeadershipStatus/Ability as “truly the
first” and No1. Safety and Security Security of
funds/Investment Job security and Integrity Enterprise Resourcefulness and
Tenacity Service Excellence Efficiency Reliability/Accessibility
24 Banks Operates in Nigeria4 biggest competitors in terms of market capitalisation. (Number of share outstanding multiply
by share price)
Political Political Stability Policy Inconsistency High Rate of
Corruption
Economic High Cost of Living High Unemployment
Rate Growing Inflation
Rate Conducive
Investment Atmosphere
Social High Level of
Illiteracy Disappearing
Middle Class High Population
Growth Rate High Rate of
Insecurity
Technology Introduction of
Global System for Mobile Communication
(GSM) Growing Internet
Usage Increase
Government Spending on ICT
Strength Strong Brand
Image Wide Branch
Coverage Strong Economic
Franchise Cross Selling
Capability Solid
Management
Weakness Low Marketing
Drive Generational
Issue Low ICT Drive Weak
International Expansion
Opportunities
High Population Growth Rate
Increasing ICT Awareness
Increase in Foreign Direct (FDI)Investment Inflow
Global Integration and Harmonisation of Banking Practices and Regulation -
Threats Infrastructural
Problem Disappearing
Middle Class Growing Illiteracy
Level
Potential Entrants
Threat of entrants
Bargaining power
SuppliersCOMPETITIVE
RIVALRY
Threat of substitutes
Substitutes
Bargaining power
Buyers
Threat Of Entrants
Barrier to Entry is High
N25 billion capital base
High Regulatory Requirements
Low differentiation
Buyers Power Buyers Power is Very
high 24 banks services
around 80million bankable population
High concentration of customers
There are lots of alternative traditional sources to bank services
Suppliers PowerSupplier Power is low Banks chasing very
few software providers/Vendors
Switching cost is very low
Forward integration by supplier is not likely
There are number of substitutes
Threat of SubstituteThreat of substitute is high customer propensity to
substitute is very high Customer’s cost of
switching is very low There are other
companies who performs the same function .i.e. cooperative society and the local contribution agents.
Competitive RivalryIntensity of competition is
high Many players with
almost equal capability There is little difference
between competitors services
The marketing drive within the industry is hyper i.e. banks can only grow by going after competitors customers
Summary of Analysis
Nigerian banking sector is highly competitive
Marketing and innovation drives competition rather than price.
Customers have different options and it does not cost the much to switch.
Because of the merger from 98 banks to 24 most banks are of equal size.
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.
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.
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.
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.
Johnson, G, Scholes, K and Whittington, R (2006) Exploring Corporate Strategy: Text and Cases. 7th ed. Harlow, Prentice Hall.
Lynch, R (2000) Corporate Strategy. 2nd ed. Prentice Hall, Harlow.
Albright, K (2004) Environmental Scanning: Radar for Success. Information Management Journal. Lemexa: Vol. 38, Iss.3; pp.38-47
www.firstbanknigeria.com www.cenbank.org