Saudi Electronic University
College of Administrative and Financial Sciences
E-commerce Department
| Student Name: | Student ID: |
| Course Title:
E-Business Strategies & Business Models |
Course Code: ECOM421 |
| Academic Year/ Semester:
1441-42/First |
CRN: |
| Instructor Name: | |
| Student Grade: | Grade Level: |
E-Business Strategy and Models in Banks
Questions.
- What are the critical elements of the e-Business Strategy framework of Bank Albilad? (3 Marks)
- Propose a SWOT analysis for Bank Albilad. (2 Marks)
- Illustrate the five forces industry framework through the Bank Albilad Case. (3 Marks)
- Design a Business Canvas Model of Bank Albilad. (2 Marks)
Answers.
1.
Bank Albilad is still dedicated to its intuition as the best bank providing much of the Islamic community’s banking solutions, expanding its relationships with its clients by giving cross-selling initiatives, improving its profitability, and strengthening the balance sheet. The bank has always remained in the frontline in adapting to the changing business environment, making it among the best banks in the kingdom. To cope with the evolving technological changes, the bank has adapted an e-business framework strategy.
As one of the e-business marketing strategies, the bank has opened a digital account that can be accessed via its website on www.bankalbilad.com. The digital account allows its clients to access services anywhere in the shortest time possible (Osterwalder & Pigneur, 2010). There is no visiting of bank branches; the is no signing of documents; you access your services by just a click on the website. The bank has genuinely been focused on its vision of ensuring efficient and easy access to services by its customers.
The initiative was meant to serve as the start of digitally transforming the banking sector for easy management of banking services by the customers, which ultimately will improve the client experience in the new digital market landscape. It was boosted by Saudi Arabia’s vision 2020 and the digital transformation program, which embraces the latest technologies in the local and global markets.
.
The adoption of the e-banking system by Bank Albilad comes with its Strengths, Weaknesses, Opportunities, and threats.
Bank Albilad Strengths.
- There will be 24/7 customers access to services via the websites.
- Timely access to information will be witnessed as clients may access information from everywhere and anytime.
- There will be a reduction of internal costs due to advancements in technology. With the adoption of automation systems, the bank’s workforce will be reduced by a significant amount.
- Automation of the banking services will improve efficiency.
- Accuracy in banking transactions will increase.
Bank Albilad Weaknesses.
- There will be a high cost of service when deploying new technology.
- Continuous change in customer requirements makes it difficult to satisfy their needs fully.
- Internal resistance to technological changes.
- Several options for customers may bring about confusion.
Bank Albilad Opportunities.
- The bank will have a larger client base.
- The global visibility of the bank is a great opportunity for expansion.
- The ability of the bank to tap on opportunities arising from the growing internet banking.
Bank Albilad Threats.
- The ever-changing technology is a threat because the banks need to cope with these future technologies, which may be expensive to adjust to.
- The banking industry’s uncertainty due to technological changes is also a threat because the organization’s future cannot be predicted.
- The product may fail due to the non-acceptance of the new technology by the customers.
3.
The threat of entry force industry framework was witnessed in bank Albilad because after its first opening of the digital account system, several other technologies like the SAMA SANDISK, developed by SAMA, facilitated online electronic bank transactions.
The adoption of digital accounting systems, which does not require customers to attend banks to perform transactions physically, has tremendously reduced the customer’s bargaining power. Customers will not have an opportunity to express their dissatisfaction in case of any, as in the traditional banking system, where the customer was in direct contact with the teller.
With the adoption of e-banking by Bank Albilad, suppliers’ bargaining power has reduced as the changing industry has many solutions and alternatives at hand (Woodside & LaPlaca, 2014). The bank can no longer have the power to draw clients from competing banks.
The bank Albilad still retained its traditional banking system as a substitute for the adopted e-banking system. Not all clients will be comfortable using the digital accounting system due to concerns like security and privacy. The multi-product packages missing in the web-enabled banks also motivate many users to prefer the traditional system of the bank Albilad.
The rapid growth of the Internet and the emergence of cheap gadgets have made electronic baking very popular (Woodside & LaPlaca, 2014). Clients have appreciated web-enabled banking due to its simplicity and convenience when using it. The acknowledgment of online banking by customers has intensified the competition among the banking providers who are investing so much in the evolving technology.
- Bank Albidad Business Canvas model.
References.
Ben-Jadeed, M., & Molina, A. (2004). The emergence and evolution of e-banking in Saudi Arabia: The case of Samba Financial Group. Frontiers of e-business research, 1, 90-106.
Osterwalder, A., & Pigneur, Y. (2010). Business model generation: a handbook for visionaries, game-changers, and challengers. John Wiley & Sons.
Solaiman, G., Kadar, A., Wanke, P., & Azad, A. K. (2017). Bank efficiency in Saudi Arabia: examining the impact of the global financial crisis. Central European Review of Economics and Management, 1(4 Data Envelopment Analysis for Performance Measurement in Developing Countries), 69-86.
Woodside, A. G., & LaPlaca, P. J. (2014). Handbook of strategic e-business management. Springer, Barcelona, Spain.