Page 49 - Banking Finance February 2023

ARTICLE

Examine the extent to which it is possible to match your
internal strengths with the opportunities presented by the
market environment. Strengths which do not match any
available opportunity will be of limited use, while
opportunities which do not have any matching strengths
cannot be exploited unless you make fundamental
institutional changes.

Look for weaknesses that you might be able to convert into
strengths in order to take advantage of an identified
opportunity.

SWOT analysis helps to make strategic decisions according
to a simple rule:
What is the business of your competitors branch. (Their
Avoid threats
segment wise business performance)
Use opportunities
What is the competition currently charging for similar
Base on strengths
products? (ROI, terms and characteristics of the
competitors' products) Improve weaknesses
What are the systems being used by the competitors
to deliver the product? On the basis of the diagnosis of your unit's current position,
it is now time to look at formulating your Strategy. This is
What is the product's position in the market? What
best done by addressing three key issues:
market segment is the product aimed at?
1. Choice of market and scope of operations:
How is the product marketed to the public? Should be focus on Retail or on MSME,
How is the product perceived by the public? (What do Should target youngers or Pensioners,
they like/dislike about it?)
Should focus on a specific geographic area or similar
penetration for all,
Sector and macro environment Analysis: - Sector
analysis gives information on trends in your close Should target Institutions or a retail individual.
environment and the stakeholders who have power in and
around your business & can influence our activity - the 2. Strategy towards the competition: How I am going to
Opportunities and Threats retain my customer base. For example, offering multiple
Competitors products to an individual can reduce the chance of customer
attrition.
Collaborators
Clients
3. Competitive advantage development/maintenance:
Networks Effective marketing to our product's USP
Local bodies Excellent Customer Service
Technical service providers Branding- Building your branch/units image in the
area.
Local elite/politicians etc.
Collaboration & tie ups
Formulate Strategy
Creating a Culture of Execution
The strengths and weaknesses describe factors internal to
your branch/unit while the opportunities and threats We need to create a new reality-based framework for
describe external forces faced by your branch/unit (SWOT cultural change that creates and reinforces a discipline of
Analysis) execution. This approach is practical and completely linked

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