Question

Name two SAUDI Arabian firms in one industry that have taken different strategic positions. Briefly describe the difference in their approaches.

Answer 1

Ans.

Strategic analysis of Arab National Bank and AI Rajhi Bank

Point of analysis	Arban National Bank	AI Rajhi Bank
Strength	1. ANB is a Joint Stock Company ranked with the 10-15 largest banks in the Middle East 2. Over 3500 people form a part of its workforce 3. Through Arab Bank, it has links to other banks in countries including Lebanon, Syria, Oman, Turkey, Australia and Switzerland 4. New revenue streams leasing, insurance, and home finance sectors	1. Compliance with Islamic Laws 2. First Islamic bank having license to open branch in non Islamic countries. 3. Largest financial company with 600+ Branches 4,700+ ATMs 73,000+ POS including Saudi Arabia, Kuwait, Jordan, Malaysia & Syria
Opportunities	1. Focus on continuing to benefit from the government's spending drive 2. With huge investment to develop the economy and start to provide jobs 3.The top Bank sector lending to private at a rate of 15 percent year-on-year 4. To boost revenues, the bank is trying to expand its presence in overseas markets	1. The deal will see Money Gram provide remittance services in Saudi Arabia, and covers both digital and walk-in channels. 2. Over the last days it has expanded with new partners in India, Egypt, Pakistan, and the Philippines to name a few. 3. It chose Swiss technology to lead its digital overhaul back in February 2019. The bank also deploys Murex technology on the capital markets and treasury side.
Threats	1. From last Quarters a hues competition has been established between Islamic and conventional too. 2. Banks will be able to book new assets, margins will be tight as alarge number of small financial companies has been established in last decades	1. Among the competing banks in Saudi Arabia that offer similar services to Al Rajhi bank include Al Jazira bank, the Riyadh Bank, Saudi Hollandi Bank, United Saudi Commercial Bank, and Arab National Bank, among others. 2. In addition to that, the current list of banks provide the source so threats to Al Rajhi bank while some of the threats experienced in the banking industry affect across section of other banks.
Weakness	1. A conservative credit culture and geographical conditions of area limits it approach. 2. On the point of Cyber security there is needs attention to strengthen it from malicious activities	1. Bank faced allegations in multiple U.S. lawsuits following the attacks on September 11, 2001, including claims that Al Rajhi Bank was used to complete financial transactions for people or nonprofit organizations with terrorist ties.