Question 2
Strengths
Bank Albilad is one of the largest Islamic Banks in Saudi Arabia and across the world. It has one of the largest retail networks across Saudi Arabia and worldwide. It has more than 150 branches and about 184 sales centers. Then, the bank has embraced e-business. As a result, its electronic services are available on a 24-hour basis, including their website, phone app, or even through social media channels, which include LinkedIn, Facebook, Snapchat, Twitter, and Instagram. This enables their clients to meet all their banking needs in the comfort of their homes. The online channels also are cost-friendly to customers. The bank practices product differentiation. It offers a wide range of banking services like customer retail banking, corporate banking, treasury, treasury, and brokerage services. Offering a variety of choices helps improve customer responsiveness. Again, the bank has a track record of successful product innovation. Finally, Bank Albilad has projected itself as the most trusted in Saudi Arabia, winning several customers’ loyalty.
Weaknesses
The Bank’s social media platforms are not well developed, there is less expertise in engaging online content, and there is no real relationship with the online influencers. Bank Albilad has a weak brand name compared to banks like Al Rajhi, making it more likely to lose potential customers to the latter. Bank Albilad has not yet opened branches in other countries. This limits the bank to operating only within Saudi Arabia.
Opportunities
The bank has an opportunity of venturing into the global market. For instance, Bank Albilad can venture into Malaysia which is an almost purely Islamic nation. This way, it would win itself very many new clients increasing their net income. Again, the bank could try to create more engaging social media content and build relationships with influencers. Then, the bank can create online engagement with its brand to familiarize people with the brand name.
Threat
The biggest threat faced by Bank Albilad is stiff competition from banks such as Al Rahji, which is well known and offers a wide range of differentiated products. There also several emerging new entrants that threaten the bank’s net income. Again, there is an aggressive price cut downs due to covid 19. This threatens the company’s performance in terms of income.
Question 4
A business model refers to the rationale by which firms create, deliver, and capture value. On the other hand, a business model canvas helps people and firms conceptualize how to analyze, create, and develop business models. It includes analyzing the firm’s key partners, key resources, key activities, value proposition, customer relationships, and distribution channels.
Bank Albilad has partnered with various entities, local credit unions, and groups at the national and international levels to expand their footprint. For instance, Bank Albilad has partnered with the National Housing Company to support its initiatives while offering financial solutions to meet customer needs.
Bank Albilad’s key resources include their brand trust, capital to invest in new ventures and make acquisitions, and their digital platform that creates room for rapid scaling. The bank has several digital channels, including Albilad App for smartphones, Enjaz App for international remittances, Albilad Website, and Mada ATMs and Medad cards that allow online shopping.
The bank’s key activities are mainly concerned with designing new digital products and services. Albilad is keen on being the first to offer technology-based banking services for its clients. Other activities include planning, system design, and strategy implementation, and performance management.
Bank Albilad offers both retail and commercial banking services to citizens at local, national, and international levels regarding value proposition. Retail banking services consist of bank accounts, credit cards, loans, mortgages, and wealth management services. Commercial banking activities include business bank accounts and loans, as well as an international remittance.
Bank Albilad has worked hard to maintain good customer relationships, both in-branch and online. The Branches have ensured the building of long-term relationships with customers. Online banking, on the other hand, has created a need for all-time support. Customers can access banks at the ease and comfort of their houses. This has increased customer satisfaction.
Bank Albilad has several channels, including various branches and online platforms. For instance, the bank has more than 150 branches and 5 sales centers that work until 9 pm from Saturday to Thursday. The branches act as major touchpoints for relationship building. The online platforms create low-fee alternatives and engagement methods for customers and bank employees.