SWOT
ANALYSIS
SWOT
has a long history as a tool of strategic and marketing
analysis. No one knows who first invented SWOT analysis. It has features
in strategy textbooks since at least 1972 and can now be found in
textbooks on marketing and any other business disciplines. Its
advocates say that it can be used to gauge the degree of "fit"
between the organization’s strategies and its environment, and to
suggest ways in which the organization can profit from strengths and
opportunities and shield itself against weaknesses and threats (Adams, 2005).
Strengths
Determine
an organization’s strong points. It is a distinctive competence when it gives
the firm a comparative advantage in the marketplace. Strengths arise from the
resources and competencies available to the firm.
Weaknesses
.
A weakness is a "limitation or deficiency in one or more resources or
competencies relative to competitors that impedes a firm's effective
performance"
Opportunities
An
opportunity is a major situation in a firm's environment. Key trends are one
source of opportunities. Identification of a previously overlooked
market segment, changes in competitive or regulatory circumstances,
technological changes, and improved buyer or supplier relationships could
represent opportunities fro the firm.
Threats
A
threat is a major unfavorable situation in a firm's environment. Threats are
key impediments to the firm's current or desired position. The entrance of new
competitors, slow market growth, increased bargaining power of key buyers or
suppliers, technological changes, and new or revised regulations could
represent threats to a firm's success.
Strengths
Technological advancements (Mobile Banking, Virtual Banking,
ATMs)
Wide Countrywide branches network
International Expansion
Strong Asset Base (ROA = 3.13% while Industry average was close to 2.15% FY10)
Steady increase in Customer Deposits (increased by 17% to Rs
431372 million in FY10)
Steady increase in Customer base
High Brand Recognition
Provision Of Services in Diversified Sectors(Corporate,
Retail, Islamic, Privilege)
Increase in Market Price of Share
Increase in Net Profitability (grew by 9% to Rs 16873
million in FY10)
High Credit Rating
(AA+ in short term & A1+ in long term)
Large ATM Network
Low cost Funding
Weaknesses
High Employee Turnover.
Dissatisfied Employees
Lack of trained and experienced staff
Less efficiency of SYMBOL System due to dis-connectivity.
Old Branch Structure
Centralized Structure
Poor management
Manual Book-Keeping
Less attractive rate of return.
Unfair recruitments and promotions
Inadequate work allocation
Improper ATM Network
Lack of promotional activities
Improper Branch Network
Poor Customer Service
Opportunities
More Overseas Operations.
Launch more effective and modern banking online system.
Growing Market
High growth Potential In Islamic Banking
New Products and Schemes
Increase in Branch Network
Employee Training
Programs with in and Outside Pakistan
Branches in Rural Areas.
Efficient ways of Recruitment and promotions
Improvement in segmenting in customer needs and developing
focused customer propositions,
Mass Media Publicity
Threats
Instable Political Conditions
Switching of customers to competitors
Terrorist activities
Natural calamities (e.g. floods in Pakistan)
Increasing inflation rates
Higher rates of return on NSS as a part of tight monetary
policy
Increase in Non Mark up Expenses due to inflation and
adverse condition of stock markets
Poor Economic conditions of country
Technological forces
Rapid increase in new entrants
Foreign banks providing better facilities
Competitors banks attracting experienced employees
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