Question

SWOT Analysis of Barclays Bank

Using strengths of Barclays bank in term of latest technology and operations to get benefits of opportunities available in India in term of large term of customers and markets can be possible by having knowledge about these internal resources and external business environment. SWOT analysis provides this information. (S)trengths  Global Leader in providing financial and investment services in five major continents.  Strong brand name in corporate banking system having more than 50,000 corporate clients all over the world.  High credibility in the growing market of Pakistan which is also based in Asia.  Personal banking with no limit on minimum deposit provides an edge on majority of competitors.  Focus on risk management. (W)eaknesses  Need of bailout in UK due to economy crises in recent past.  Bad impact on image due to government funding issue in Zimbabwe.  Less innovation in marketing campaigns related to Indian culture. Barclays is working in India for a long time but they fail to adopt market orientation related to Indian culture (O)pportunities  Past business experience of India provides an extra advantage to make an expansion decision.  Growing banking sector of India, focus on corporate banking and increased personal funding due to reliability and credibility of Barclays bank.  Investment opportunities in IPL and other Indian leagues due to corporate image of these leagues can provide global promotional opportunities for Barclays bank.  India is a country with wide geographical area and second highest population. India can provide a lot of potential corporate and personal customers by making an expansion decision in other parts of India. (T)hreats  Increase in interest rates has decreased the funding from personal banking sector. Government banks and investment policies provides more attraction for personal investors due to bigger output of these services.  Domestic banks with cultural related strategies is a threat for Barclays  More international banks are moving towards Indian market due to the availability of business and customers. It can increase the scale of competition in India

1.Explain why competitive advantages are temporary along with the four key areas of a SWOT analysis and discuss the SWOT of Barclays Bank

Answer 1

Competitive advantage is a feature or a strength to a company where the company enjoys customers' great value than the other similar companies offering the same products. Competitive advantage provides low price services, but the competitive advantage is temporary as competitors original copy the ways or methods that can quickly change the market competition level. In return, the organization needs to focus on developing a strategy to fight against the new competitive advantage. The company may duplicate a competitive advantage by introducing new technology, hiring the same employees by giving them high incentives, copying the same procedures. SWOT analysis describes the strengths, weaknesses, opportunities, and threats of an organization. Strengths and weaknesses help the organization internally, and opportunities and threats originate outside the organization, which cannot be controlled.

SWOT analysis of Barclays Bank:

Strengths: 1. The bank has excellent brand visibility where more than 100000 employees work.

2. Barclays deals in different business units like retail banking, wealth management that contribute to the overall growth.

Weaknesses: 1. There have been many controversies like government funding in Zimbabwe, which affected the bank's growth and image.

2. It has faced an economic crisis.

Opportunities: 1. Barclays Bank ok have a great chance into online banking.

2. Growth and expansion opportunities at this point in emerging economies.

Threats: 1. The bank has a highly competitive environment.

2. A highly competitive environment may affect the market share of the bank.