Running Head: STRATEGIES FOR E-BUSINESS

Strategies for e-Business

Name

Institution

1. What are the key elements of the e-Business Strategy framework of Bank Albilad? (3 Marks)
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Supply chain management

Service of opening the current account digitally and launching through the website. As a
result, filling out the customer's current account opening form and documents is done online and
also using the customer's fingerprint (Malcolm, 2017). All these services are intended to be
developed more gradually by visiting one of the Bank's ATMs scattered throughout the Kingdom of
Saudi Arabia (Syaniardi & Shihab, 2016, October). Other services that the bank also provides to its
customer are opening a current account immediately, registering in banking services online and
through AlBilad App for smartphones, issuing Mada cards and delivering them to your address
(could be ordered from banking services online), repayments, transfer of funds to local and
international banks, International Funds Transfer Service using Enjaz Easy and Western Union
services (Malcolm, 2017).

Customer relationship management

The benefits from the digital channels available to its customers around the clock will
improve customer service and better customer relationship management while ensuring the highest
standards and level of customer satisfaction (Malcolm, 2017). This includes the AlBilad App to
help customers easily manage all banking services without leaving their homes. Additionally,
customers can immediately reach the bank through Albilad WhatsApp and get things done faster
with no hassle, and also on Albilad’s website at www.bankalbilad.com (Syaniardi & Shihab, 2016,
October).

Tactical operations alignments

According to the current CEO of the bank, the bank is gearing to provide the technology
based banking to all clients in the country, he insists that it is a major transformation as the bank
adopts digital platform. To benefit internal(Saudi Arabia) and external customers(Middle East)
(Malcolm, 2017). The bank has been tactically in its approach to launching, these technology-
driven customer initiatives for the first time in KSA and the Middle East.

SWOT analysis

Strengths

 The bank has a vision to be the number one bank and the most preferred Bank in the
Saudi Arabia. This will be achieved through tailoring its solutions towards Islamic
Banking and adhere to Sharia Law. This will enable the bank to excel in the Islamic
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Banking Sector. Thus, the bank's location is ideal to offer Islamic banking solutions
(Yashwanth & Yaragol, 2018).
 The Bank is listed on the Saudi Listed Joint Stock Company and ranks among the largest
banks in Saudi Arabia.
 The Bank is one of the remittance providers in the Kingdom.
 The bank has new revenue streams through the establishment of joint ventures in
leasing, construction, and home finance (Yashwanth & Yaragol, 2018).
 Additionally, Saudi Arabia has an estimated population of 34,218,169 persons and is
geographically the largest state in Western Asia, the second largest in the Arab world.
This provides for a ready market for an Islamic banking product. In addition, the bank is
incorporated with a capital of 7.5 billion Saudi Riyals (Yashwanth & Yaragol, 2018).

Weakness

 The conservative credit culture for the banks means that it has limited geographic
coverage, this makes the brand of the bank to be limited to Islamic Regions.
 The bank has an inadequate cybersecurity platform, therefore it needs to strengthen
these aspects.

Opportunities

 Though headquartered in the Kingdom of Saudi Arabia, Bank AlBilad has launched
its services and product, for the first time in Saudi Arabia and the Middle East.
 The Middle East region is a key segment of its sharia-based Islamic banking
solutions (Aljarallah, 2019).
 The bank has banked on the continued investment by the government on the Riyadh
Economy, hence it has started providing jobs to the ever-growing population.
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 The bank’s lending to the private sector is still growing at a rate of 15% per year.
 The expansion of the bank beyond the borders of Saudi Arabia means that it will
experience expanded revenues (Aljarallah, 2019).

Threats.

 Bank Albilad's introduction of new technology brings with it treats associated with
the internet i.e. data braches.
 Through its intention to offer a digital solution of opening a current account by using
its customer's fingerprint exposes the Bank to threats associated with the web.
 In addition, the threat of a COVID-19 pandemic is real and has affected the revenues
of the company since March (Malcolm, 2017).
 Increased competition over the years amid the growing local banks means that
bigger banks will be able to book new assets with tighter profit margins.

Five Forces Industry Framework for The Bank Albilad

The threat of new entrants: The bank was established through a Royal Decree that
corresponds to the 4th November 2004, it has a market valuation of 8.9 billion Riyals. This policy
and the regulatory requirement has sanctioned monopoly with a high entry barrier.

The threat of substitutes: the bank is headquartered in Riyadh, Saudi Arabia, and was
launched, for the first time in the Kingdom of Saudi Arabia and the Middle East to offer sharia-
based Islamic banking solutions in the Islamic banking sector. Therefore, the country and region
being predominately Muslim, It’s not easy to substitute the product and it is the only product
available for substitution in that market. Bargaining power of customers: Differential advantage
(uniqueness) of Bank Albiad products makes it unique (Malcolm, 2017). The company interacts
with customers through the provision of the latest technology, the company is also adopting a
transformation program, that has become part of bank to help customers manage their banking
requirements from home, so that they do not have to travel daily to the bank (Syaniardi & Shihab,
2016, October).

Competitive rivalry: Bank Albiad has intensified the competitive rivalry in the industry to
get a sustainable competitive advantage through innovation to provide the best banking services to
its clients easily, which reflects the Bank's intention to provide advanced digital solutions
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throughout the Kingdom (Malcolm, 2017). The function of account opening through digital means
can be carried out through the Bank’s website from all over the world. The process does not require
an individual to move to branches or submit any hard copy of documents. There is also no need to
sign any documents as all signs are done online.

Bargaining power of the Suppliers: The bank customers also supply their banks with
funds. These deposits are used by the bank to give out loans. The banks therefore, attract customers
through provisions of attractive interest on deposits, they also issue loans at low interest. This will
attract more loan takers. Like any other bank, the bank tries to maximize the shareholder’s wealth,
these customers have high bargaining power, and the bank has to convince them that what the bank
provides them with is what they actually need.

4. Design a Business Canvas Model of Bank Albilad. (2 Marks)

Key Partners Key Activities Value Customer Customer

Proposition relationships segments

-Sharia based -Building Online -Creation of -Muslim

banking presence for the Personal Customers

bank assistance
-excellent baking

according to -Use of POS for

Islamic Beliefs automated

services. Use of

Apple Pay.
Key Resources Key Partners Channels Partnerships
-Capital base of -Individuals -Email -Middle East

7.5 million Banks

-Small medium -Telephone

-Key personnel and large

-Personal
in the banking enterprises
Services
sector (CEO and
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Chairman)

Cost Structure Revenue

Streams
-uses a value -Customer retail

driven cost banking

structure
-Treasury

activity

-Corporate

Banking

-Brokerage and

investment
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References

Malcolm, C. L. (2017). Five e-business strategies you can take to the bank. Healthcare Financial
Management, 55(9), 72-72.

Syaniardi, Y. H., & Shihab, M. R. (2016, October). Formulating e-business strategy for branchless
banking: A case of a bank in Indonesia. In 2016 International Conference on Advanced
Computer Science and Information Systems (ICACSIS) (pp. 201-206). IEEE.

Yashwanth, K. J., & Yaragol, B. P. (2018). A Study on Financial Performance Analysis of Prequate
Consultants Private Limited, Bangalore.

Aljarallah, A. (2019). Analyzing the impact of the World Trade Organisation (WTO) on the
sustainability of competitiveness of the Banking Industry in Saudi Arabia (Doctoral
dissertation, Durham University).