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Running Head: COMPETITOR ANALYSIS

COMPETITOR ANALYSIS

Name

Course

November 24, 2020

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COMPETITOR ANALYSIS
Competitor Analysis

Competitive Analysis
  National Bank of Kuwait
Direct Competitors
The National Bank of Kuwait was established
in year 1952. The company operates in
banking sector and is the largest bank of
Kuwait with its branches and subsidiaries
Company spread in multinational countries such as
China, London, and Paris etc. In 2016, the
Profile bank had 6,058 employees working for the
company.
Company
Highlights
The key competitive advantage of National
Bank of Kuwait is that it has the highest credit
Key rating amongst all the banks operating in the
region. It has been awarded for its credit
Competitive ratings by Moody's, Standard and Poor's and
Advantage Fitch Ratings.
Kuwait Finance House
Kuwait Finance House was established in
1977 in the State of Kuwait. The company
operates in the banking sector and thus is
the direct competitor if the National Bank
of Kuwait. It was the first bank in Kuwait
that followed Islamic jurisdictions of
Sharia'h law. In 2019, the company had
approximately 15,000 employees.
It is the most trusted Isamic bank in the
country. It received the award of Most
Trusted Islamic bank from the World
Finance. This makes Kuwait Finance
House gain an advantage to attract more
customers as they can trust the bank
easily with their savings and investments.

The target market is general public. Their main target segment is Muslims who
want to save their investments in a bank
Target Market that follows Sharia'h law.
The bank had a market capitalization of The bank had a market capitalization of
Market $11.02 billion. $8.08 billion.
Market Share
Information
The marketing strategy of NBK is through ads KFH advertises its products and services
Marketing on websites and television to aware its through placing ads on television and is
Strategy customers. planning to use social networks.
1. Cards 1. Cards
• Gold Card 2. Personal Accounts
• Platinum Card 3. Murabaha
• Thahabi World MasterCard 4. Ijarah
• Prepaid Card 5. Mudharaba
2. Personal Accounts
• Current Account
• Call Account
• Watani Express
• Al Jawhara
• Savings
3. Loans
Products & Product • Customer Loans
Services Information • Family Loans
• Auto Loans
• International Mortgages
• Business Loans
• Letters of Credit
• Letters of Guarantee

COMPETITOR ANALYSIS
Their pricing strategy includes customer fees
on customer accounts and fees on other
benefits such as online banking or mobile
Pricing banking.
Online and physical branches.
Distribution
Channels
1. The management team is very stable with
focused strategies in place.
2. The bank’s international diversification now
includes 175 branches and subsidiaries in
several countries including 10 countries of
Middle East.
3. The bank has a high credit rating and has
received several awards from credit rating
Strengths companies.
The weakness of National Bank of Kuwait is
that it focuses on becoming the best player in
Kuwait but its performance in other countries
Weaknesses is not as competitive as its origin country.
National Bank of Kuwait can finance power
companies of Kuwait as well as big Airlines
SWOTT as it has the highest credit rating. Also, it can
finance SSI sector to increase exports which
Information will prosper the economy.
Opportunities
Following are the few threats of National
Bank of Kuwait that it should focus on: 1.
Competition from banks globally
2. There is unrest in the Gulf region and its
economy which can impact the bank’s
performance.
Threats
Online banking that allows using banking
Trends services at any time from any place.
3
Pricing strategy is product-centric where
the customers are charged as per the
product that they opt for. The bank has
varying customer fees for its different
products and services.
Online website that offers 140 banking
services and physical branches.
Few of the strengths of KFH are
mentioned below:
1. It has received the award of Most
Trusted Islamic Bank from the World
Finance
2. The bank offers a very secure online
website that allows the customers to
conduct 140 different services from home
3. It has a 24/7 call center that uses voice
recognition which is the first of its kind in
the country
The biggest weakness of the KFH is that it
has limited exposure to the global banks
as compared to other leading banks in
Kuwait.
Few of the opportunities that KFH can
employ on:
1. It can grow globally to countries where
there are huge Muslim populations but
have no such Islamic facilities available in
banking services such as the United
States.
2. It can launch Islamic bonds.
Following are the few threats of KFH that
it should focus on:
1. Competition from banks that are
targeting all the customers in the country
2. There is unrest in the Gulf region and
its economy which can impact the bank’s
performance.
3. The economy of Gulf countries is oil-
driven and therefore is subject to
fluctuation.
Online banking that allows using banking
services at any time from any place.