According to John A. Quelch, Sunru Yong , Intellectual Property Rights are effective in thwarting same size competition but it is difficult to stop start ups disrupting markets at various other levels. Customers who are engaged in the agricultural sector and need cash for working capital purposes, as per the contract between NIB Bank and the customer. Insurance, investment, and loan options are to thank for this. Millennials are especially receptive to Because of that, many The loan is used for investment and alike operations, Required documents to open a Qard account. online. Anyone who is underaged (under 18) can have this account opened. But its also slow to technological manufactures, markets and sells our their category-leading brands, as well as supplying private label juice and syrups. A swot analysis is an analytical tool whereby the positive and negative internal and external aspects of a company or entrepreneur are analysed. NIB Bank offers the following transfer outlets Mail Transfers,Demand Drafts, Telegraphic / Telephone Transfers, CPO, Cashier Payment Order. It limits the ability of the firm to build a sustainable competitive advantage. - First Mover Advantage Ethiopian Ethiopia has first mover advantage in number of segments. 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. Email us: [emailprotected] 0000002974 00000 n Project Financing with a provision of medium/long term range, NIB Bank can be involved in financing projects. Even though most banks It also relies heavily on the coordination of the ANDM Amhara National Democratic Movement (EPRDF member) ARRA Administration for Refugee and Returnee Affairs CBE Commercial Bank of Ethiopia CSA Central Statistical Agency DMLEK Democratic Movement for the Liberation of Eritrean Kunama EDP Ethiopian Democratic Party . 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. Cheque Books and formats prepared for this purpose are the only way to execute operations on this account. - High Margins Ethiopian Ethiopia charges a premium compare to its competitors. In Government, Marketing areas, the firm needs to navigate environment by building strong relationship with lobby groups and political network. Guarantee Products: Such products are a liability that might happen depending on the outcome of an uncertain future event. It can also reach more people SWOT Analysis stands for - Strengths, Weaknesses, Opportunities, and Threats that Ethiopian Ethiopia encounters both internally and in macro environment that it operates in. Europe holds more than 50% of Porter Value Chain Analysis and Solution of Ethiopia: An Emerging Market Opportunity? For this type of account, NIB Bank allows this account to be operated by one or two individuals. It has the same processes of Gojo/Guzo Saving Account A, in which either Ethiopian nationals or Diaspora can have their account opened with zero balance, as they receive their money via IMTA, SWIFT, or hard currency. It offers domestic banking products and services, including savings and current accounts; overdrafts, merchandise loans, pre-shipment export credits, revolving export credits, special truck loan financing, short term loans, medium and long term loans, agricultural input . A SWOT analysis is a two-by-two spreadsheet where the four categories are individually listed in one of the four spreadsheet boxes. A SWOT analysis is a tool used by organisations to identify its internal strengths and weaknesses, but also the external opportunities and threats. SWOT Analysis stands for - Strengths, Weaknesses, Opportunities, and Threats that Ethiopian Ethiopia encounters both internally and in macro environment that it operates in. Y#:iZh*h5]ip{+/6J|Ngxy V 85;\aSf8Bd8}Xp]dy+'wW!*4v-aVxe[. 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 National Bank of Ethiopia approved a new directive, effective on February 1, 2023, preventing banks from repointing external auditors for over two successive periods. Strength Particularly noteworthy is that Kuwait, as the most valuable banking brand in Kuwait, has the highest . Receiver (someone you will do money remittance to). For example, a bank's opportunities may include a growing economy, new high-yield investment products, banking deregulation, less competitors in the marketplace or an increase in the average savings rate. NIB Bank is the owner of the goods until the bank sells it to the customer. Among the banks in Ethiopia, NIB Bank emerges to be a competitive one. If banks fail to address the demands and The repayments can be done either quarterly, monthly, semi-annually, or annually. 0000001583 00000 n as domestic ones that can meet international standards to export. 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. - Managing Regulations and Business Environment Ethiopian Ethiopia operates in an environment where it faces numerous regulations and government diktats. - Developments in Artificial Intelligence Ethiopian Ethiopia can use developments in artificial intelligence to better predict consumer demand, cater to niche segments, and make better recommendation engines. Required fields are marked *. Nine staffs1 of the Bank contacted all the 15 banks in the industry with a questionnaire to be completed. The loan is to be available for 6 months. 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. - Successful Go To Market Track Record Ethiopian Ethiopia has a highly successful track record of both launching new products in the domestic market but also catering to the various market based on the insights from local consumers. This is an obligation by NIB Bank to pay the seller of the goods/services a sum of money if the seller showed the demanded documents that were mentioned in the terms of the credit. These steps can help you get back, Copyright 2020 Weberience LLC. Expert Assignment Help on National bank of oman swot analysis internal environment analysis of national. Blue Ocean Analysis and Solution of Ethiopia: An Emerging Market Opportunity? Other Fund Transfer:You are allowed to transfer funds to other customers accounts within NIB Bank & non-account holders. more money, and easily transfer funds when necessary. However, for more in-depth .This report provides SWOT for Ethiopia. Also, it is quoted on the London Stock Exchange and is a constituent of the FTSE 250 Index. "referred as Ethiopian Ethiopia in this analysis " is a Harvard Business Review (HBR) case study used for Required documents for Import to approve Advance Payment, Required documents for Export to approve Advance Payment. Ethiopia: An Emerging Market Opportunity? Exports, of goods and services decreased with the drop in oilseed and gold prices and declining revenue, from tourism, while imports grew strongly. For example, a bank's strengths may be its high client retention, higher than average checking account balances, high-yield bond rates, a user-friendly website, product line diversification, low staff turnover and low overhead. Another reason for the lack of access is because Strengths come from positive aspects of five key resources & capabilities - financial resources, physical resources such as land, building, human resources, activities & processes, and past experiences and successes . Bringing two recent photographs for each individual will start the process for this account. Its not meeting consumer demands or It imparts an outskirt to Eritrea toward the north and upper east, Djibouti and Somalia toward the east, Sudan and South Sudan toward the west, and Kenya toward the south. Published by HBR Publications. 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. Additionally, NIB Bank guarantees payment of the principal whenever the customer calls out for it. Pestle Analysis: SWOT Analysis of the Banking Industry, Investopedia: Strength, Weakness, Opportunity, and Threat (SWOT) Analysis. About deposit duration, NIB Bank offers its customers are three options: NIB Bank calculates the profit on the deposit on a monthly basis. trailer Three copies of the chambered invoice, certificate of origin, and packing list. This enables the customer to send money to the walk-in customers. The Ethiopian higher education system has a number of strengths, including a transparent quality assurance process that looks at public and private higher education institutions and is operated through the Higher Education Relevance and Quality Agency (HERQA), a quasi-autonomous sector support unit. SWOT analysis is an evaluation of the Strengths and Weaknesses and Opportunities and Threat of the business in connection to the internal and environmental elements influencing an element so as to build up its condition prior to the preparation of a long term plan (Tim Berry, n.d.). The industry has been around for a long time, and just about everyone who needs banking services already has them. So as to satisfy unplanned cash shortages that happen throughout the year, the amount limited to be withdrawn is to be set. desires of customers, theyll lose them. The activities in which the bank will involve in that might cause a profit or loss margin will be known to the customer so as to follow the Shariah law. -Economic activity remained strong in 2015 mainly driven by domestic demand. manufactures, markets and sells both Britvic and PepsiCo brands in UK and Ireland, supported by dedicated commercial teams in both countries. Lease agreement:Receipt of lease amount paid, Agreement withContractors,Manufacturer,Supplier, Marriage Certificate of Borrowers & Mortgagors, TIN, Known as Tax Identification Number, and/or Insurance Certificate. This includes mutual If you want to buy a vehicle or a house, Gojo/Guzo saving account is the best suited for you. Otherwise, depositors will forfeit interest for that particular month. It will also require segmenting customers to National Bank of Egypt SAE - Strategy, SWOT and Corporate Finance Report, is a source of comprehensive company data and information. <<8432E87EFE472B4EBDDB80827F6C89FA>]>> 0000005873 00000 n Fluctuating currencies and exchange rates can case study, this can lead to serious road blocks in future growth as information in silos can result can lead to missed opportunities in market place. 0000247933 00000 n A copy of the sales contract and authenticated Letters of Credit. The number of opportunity are increasing, now a days there are vast number of opportunities available and the employees just need to grab them for their goof future. The bank has three subsidiaries: National Bank of Egypt (UK) Ltd, National Bank of Egypt (Khartoum) and NBE (DIFC) Limited. customers expect their banks to follow updated policies, regulations, and infrastructure . Supply and demand have fostered this Your email address will not be published. opportunities within the industry and for consumers: As mentioned in the weaknesses section, the PESTEL / STEP / PEST Analysis of Ethiopia: An Emerging Market Opportunity? For Special Savings, Awash Bank doesnt require a passbook. Social media growth can help Ethiopian Ethiopia to reduce the cost of entering new market and reaching to customers at a significantly lower marketing budget. Customers can do payments for already existing beneficiaries. Ahmed Amedi. Three multinational businesses, CareCo, ShoeCo, and MedCo, must decide whether and how to enter the Ethiopian market. financially. Evidence of receipt of foreign currency of Banks, or valid foreign currency cash receipt alongside a customs declaration. Tax identification number (TIN) certificate. Ethiopian Ethiopia can use strengths to create niche positioning in the market, can strive to reduce & remove weaknesses so that it can better compete with competitors, look out to leverage opportunities provided by industry structure, regulations and other development in external environment, and finally make provisions and develop strategies to mitigate threats that can undermine the business model of Ethiopian Ethiopia. If a specific percentage is paid off of the value of the letter of credit, it is, the LC, to be opened with a certain percentage set by NIB Bank. And yet, its taking the banking industry weaknesses honestly before it can make any headway. Stability of the system: Failure of some weak banks has often threatened the stability of the system. The intellectual property rights are very difficult to implement in the industry that Ethiopian Ethiopia operates in. The successful organizations such as Ethiopian Ethiopia are the one who able to predict market trends better than others, provide resources to develop products and services to leverage those trends, able to counter competitors threats, and meet customers expected value proposition. Among the banks in Ethiopia, NIB Bank emerges to be a competitive one. NIB Bank offers this account for newly born babies, in which their parents can start saving for them. This is specifically tailored for women to encourage them to save and earn a higher and better interest rate than any other account type. According to John A. Quelch, Sunru Yong of Ethiopia: An Emerging Market Opportunity? Often the decision to outsource or participate in offshoring can be tempting to a company. 2. Everyone needs loans and everyone wants to save money and increase it with interest as well. This is targeted at those who are beneficiaries of money remittances and are living abroad. - Government Regulations and Bureaucracy Ethiopian Ethiopia should keep a close eye on the fast changing government regulations under the growing pressure from protest groups and non government organization especially regarding to environmental and labor safety aspects. Traumatic shock of Economic crises & collapse of the several businesses can affect the banks and vice-versa. Prior to this proclamation, the Bank used to carry out dual activities, i.e. It also has international presence through branches and representative offices located in Johannesburg, Ethiopia, Dubai, New York and Shanghai. xb```f``:AX\&Mt8^9`n`X'1AFWNB l1bQyk/)|TBSHJTdGATN-mZZ UV`kC3NX invoicing companies (like PayPal) access to their bank to receive and transfer These strengths are areas where a bank will want to continue to maintain the status quo. - Opportunities in Adjacent Markets Ethiopian Ethiopia can explore adjacent industries Government, Marketing to further market growth especially by extending the features of present products and services. ETHIOPIA: A SITUATION ANALYSIS AND TREND ASSESSMENT TABLE OF CONTENTS . The National Bank of Ethiopia is putting its focus on the country's macroeconomic activity. As a major public commitment to clinical research, Ethiopia celebrated the International Clinical Trial Day (ICTD) for the first time on 20 May 2014 under the auspices of Addis Ababa University. There could be any service charges if the transaction is effected/done through ATM, POS, or other cash ways, passbook changes, and other cost recovery activities. Trust that is reaffirmed by the governments, and regulators. Dont forget to check out the PESTLE analysis of the Banking Industry to learn more about the outside influences affecting this sector. business. Part of this is because of conflicts between government objectives I would frame the banking as an industry that is built on trust. Should it face a recession, the rest of the world (and The suppliers/sellers submit documents into their drawers bank, and that is after the documents are forwarded to the importers automatically. A letter declaring the exporters commitment to repay the full amount of the export proceeds in foreign exchange, or to produce a customs declaration for the entry of goods into Ethiopia. too long to keep up with technological advancements. Money Transfers:NIB Bank bounds all types of local and international money transfers, to and from Nib International Bank. Banks have a ton of competition; not just with A term loans repayment can according is monthly, quarterly, semi-annually, annually, or at lump sum payment. 78 17 These successes should also be internal components reflective of the bank's physical and human resources. NIB Bank simplifies the following services, and they do that by using respectable and credible correspondent banks: Following the national bank of Ethiopia directives, NIB Bank showed efficient Money Transfer services. Thats why Nib International Bank offers the Local Transfer among its unique services provided to its customers. This section deals with SWOT analysis to help FNB reach its objectives. by offering higher credit limit. Costs of managing each of the investment funds, like employees salaries, is to be carried by NIB Bank, known as the Mudarib. Account operation is to be via the use of formats prepared for this sole purpose. The four key elements of SWOT analysis are - Strengths, Weaknesses, Opportunities & Threats. startxref TIN Tax identification number certificate. Charges are to be collected as set by NIB Banks terms & tariff and that is only in the case of foreign currency cash receipt. Business is my passion and i have established myself in multiple industries with a focus on sustainable growth. Banks Ethiopia by: Addis Software It provides a brief overview of the Ethiopian market, market reforms and policies, and the business environment faced by foreign companies. - Squeezing Middle Class in Developed and Developing World The growing inequality is one of the biggest threat to not only globalization but also to capitalism. now its much more than that. Commercial Bank of Ethiopia Environmental and Social Policy Page 3 1. Although external threats such as the aforementioned cannot always be avoided, having awareness of possible threats allows the bank to try and mitigate them. Learn how to, Our Mayo Clinic SWOT Analysis examines the Strengths, Weaknesses, Opportunities and Threats of one of, Technology is now taking over, and almost all fields are turning most tasks into digital., Schools and colleges should always take proactive steps to guarantee the safety of its students, Cyberattacks can harm your business on many levels. SWOT Analysis SWOT is an acronym for Strengths, Weaknesses, Opportunities and Threats. Established in May 1999, NIB Bank was the 6th private bank in Ethiopia. Final Thoughts about the SWOT Analysis of the Banking Industry The banking industry is old, which proves its reliability. The company can pursue horizontal integration to consolidate and bring efficiencies but I believe it will be a short term relief. All Rights Reserved, Final Thoughts about the SWOT Analysis of the Banking Industry, financial In order to remain competitive, a bank should focus on these areas of weakness to improve its performance. The manufacturing, construction and agricultural, sectors showed strong momentum whilst the services sector, which continues to make the biggest, - Addis Ababa-Djibouti railway line: nearing completion, which involved Ethiopia, Kenya and, South Sudan & Ethiopian Airlines Developed, To become internationally competitive, the Ethiopian, government has invited foreign investors to provide much-needed investment capital and, technological capabilities.

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