SWOT Analysis

Area of Core Competencies

Conclusion and Recommendations

1894 Incorporated in Liverpool as British Bank for West Africa.

1969 Incorporated Locally as the Standard Bank of Nigeria Limited.

1971 Listed on the Nigerian Stock Exchange. 2002 Established First Offshore Financial

Subsidiary of Nigerian Owned Bank in UK. 2005 Acquired Two Banks; MBC

international Bank Limited and FBN (Merchants Bankers) Ltd.

2007 Floated First Ever Hybrid-Capital Offering Out of Africa. (www.firsrbanknigeria.com)

Vision: “To be the clear leader and Nigeria’s bank of first choice”

Mission: “To remain true to our name by providing best financial services possible”

(www.firsrbanknigeria.com)

LeadershipStatus/Ability as “truly the

first” and No1. Safety and Security Security of

funds/Investment Job security and Integrity Enterprise Resourcefulness and

Tenacity Service Excellence Efficiency Reliability/Accessibility

24 Banks Operates in Nigeria4 biggest competitors in terms of market capitalisation. (Number of share outstanding multiply

by share price)

Political Political Stability Policy Inconsistency High Rate of

Corruption

Economic High Cost of Living High Unemployment

Rate Growing Inflation

Rate Conducive

Investment Atmosphere

Social High Level of

Illiteracy Disappearing

Middle Class High Population

Growth Rate High Rate of

Insecurity

Technology Introduction of

Global System for Mobile Communication

(GSM) Growing Internet

Usage Increase

Government Spending on ICT

Strength Strong Brand

Image Wide Branch

Coverage Strong Economic

Franchise Cross Selling

Capability Solid

Management

Weakness Low Marketing

Drive Generational

Issue Low ICT Drive Weak

International Expansion

Opportunities

High Population Growth Rate

Increasing ICT Awareness

Increase in Foreign Direct (FDI)Investment Inflow

Global Integration and Harmonisation of Banking Practices and Regulation -

Threats Infrastructural

Problem Disappearing

Middle Class Growing Illiteracy

Level

Potential Entrants

Threat of entrants

Bargaining power

SuppliersCOMPETITIVE

RIVALRY

Threat of substitutes

Substitutes

Bargaining power

Buyers

Threat Of Entrants

Barrier to Entry is High

N25 billion capital base

High Regulatory Requirements

Low differentiation

Buyers Power Buyers Power is Very

high 24 banks services

around 80million bankable population

High concentration of customers

There are lots of alternative traditional sources to bank services

Suppliers PowerSupplier Power is low Banks chasing very

few software providers/Vendors

Switching cost is very low

Forward integration by supplier is not likely

There are number of substitutes

Threat of SubstituteThreat of substitute is high customer propensity to

substitute is very high Customer’s cost of

switching is very low There are other

companies who performs the same function .i.e. cooperative society and the local contribution agents.

Competitive RivalryIntensity of competition is

high Many players with

almost equal capability There is little difference

between competitors services

The marketing drive within the industry is hyper i.e. banks can only grow by going after competitors customers

Summary of Analysis

Nigerian banking sector is highly competitive

Marketing and innovation drives competition rather than price.

Customers have different options and it does not cost the much to switch.

Because of the merger from 98 banks to 24 most banks are of equal size.

First Bank’s vision statement is to remain the clear leader and Nigerian’s bank of first choice. The banks has built its strategy around its brand image so much so that no competitor has been able to surpass its leading position in the Nigerian banking sector.

The bank is trying to overcome the old generation image attached to it, its number one perception is rather based on strong economic franchise and superior financial performance. When it comes to superior banking services some competitors have got better ideas.

The bank’s insistence on generic growth within Nigeria might be short-changing it from the enormous opportunities provided by the economic integration of Africa. Other competitors have spread their tentacles around sub-saharan Africa and they are seriously leveraging on the out of country opportunity.

Brabet, J. and Klemm, M (1994) Sharing the Vision: Company Mission Statement in Britain and France. Long Range Planning, Vol.27, No.1, pp.84-94.

Johnson, G, Scholes, K and Whittington, R (2006) Exploring Corporate Strategy: Text and Cases. 7th ed. Harlow, Prentice Hall.

Lynch, R (2000) Corporate Strategy. 2nd ed. Prentice Hall, Harlow.

Albright, K (2004) Environmental Scanning: Radar for Success. Information Management Journal. Lemexa: Vol. 38, Iss.3; pp.38-47

www.firstbanknigeria.com www.cenbank.org