An elaborate e-business strategy depends on the successful implementation of an organization’s operations over the internet. Rapid development in computer technology and its subsequent embrace by society ensure that organizations have to adapt their activities and quickly accommodate the inevitable change. Bank Albilad has various key elements of e-business strategy that ensure the future success of the organization. Customer service is an integral part of any successful business. Since many customers opt to use online platforms to access banking services, Bank Albilad needs to develop effective customer service and relationship management to target high customer experience. In this charter, the bank’s customer service section should ensure that all customers who visit the organization’s online or mobile-based platforms enjoy friendly services at reasonable rates and appropriate time. One of the major issues that customers sighted from their interaction with traditional banking operations is a long waiting time.
Supply chain management is also a critical element of the e-business strategy for the company. In this approach, Bank Albilad will carefully evaluate all its processes in providing products and services for its market. The bank will manage an optimum supply chain to avoid wastage of resources and improve the customer experience while dealing with the organization across all platforms. All products developed for office, or online use will undergo a thorough management process to maintain high-quality standards. On the same note, the bank also focuses its e-business strategy on optimum management of inventory and services. At all times, the bank will ensure adequate inventory to sustain all operations without hitches. Moreover, the inventory and services management integration will enable the organization to avoid surplus or excess purchasing, reducing losses for the company.
- Propose a SWOT analysis for Bank Albilad. (2 Marks)Illustrate the five forces industry framework through the Bank Albilad Case. (3 Marks)
The five forces industry framework is a simple but powerful tool used by leaders to understand the business environment and identify potential profitability avenues. Therefore, the tools come in handy when establishing the organization’s position. Other than look at the competitors’ actions, Michael Porter recommended that businesses also examine other vital factors that impacted the business environment. Porter identified five forces that can erode profitability or make up the business competitive environment. First, a business has to evaluate the number and strength of competitors within the market. For instance, Bank Albilad has several competitors within the Kingdom of Saudi Arabia. All other market participants are in a race to digitalize their operations and ensure customer satisfaction while using technology. Banking is an industry with small profit margins per customer transaction. Moreover, technology development ensures that customers are conscious of their expenses. Therefore, Bank Albilad should price its rates for various products and services to create a competitive advantage in the short and long term.
Consumers of banking products and services are less likely to influence the prices adversely. Organizations that have many customers, such as within the banking sector, do not have to worry about the customers dictating terms regarding prices for products and services. Bank Albilad has a sizable market share with customers in thousands. Therefore, these customers cannot command the prices directly.
Banks should always be wary of substitute products and services. The dynamic nature of businesses and constant competition and innovation ensures that different organizations make products that are a better or cheaper substitute to those existent in a market. Non-bank financial institutions offer clients within the market a substitute for the products and services that banks offer. The internet and use of mobile platforms increase substitute products and services to those offered by traditional organizations like the Bank of Abilad. Therefore, the business should brace for the competition from substitute products.
Suppliers also play a key role in business survival. Some of the banking sector suppliers include electricity companies, internet service providers, and stationery companies. Previously, banks depended on single large suppliers to deliver key products and services vital for operations. However, access to advanced technology ensured that banks had a larger pool of suppliers to select from or create autonomy. As a measure of ensuring sustainability, Banks are working with suppliers that meet environmental regulations and standards.
The administration of Saudi Arabia is doing the best to ensure ease of doing business and a positive environment for new market entrants. Such a move by the government works both in favor of existing banks and to their disadvantage. On the bright side, existing businesses have a positive work environment and enjoy tax holidays and other benefits. On the flip side, banks such as Albilad may face stiff competition from new market entrants. Competition for market share reduces the organization’s profit margins.