Strategy organization and opportunity assessment
Before that happens, there is a need to assess its preparation to go global and the opportunities available in its industry globally. This paper discusses the readiness of Alimna bank to internationalize and the market potential of the banking industry. Alimna Bank's Readiness to Internationalize Trade-offs and expected benefits In the assessment of the Bank's readiness to go global, several factors come into play. One of the elements in assessing the readiness of Alimna Bank to venture into foreign markets has to do with the trade-offs and benefits of engaging in the international expansion of its boundaries. Since Alimna Bank takes part in both the retail and corporate banking, it is likely to receive an increase in the number of consumers, especially in the African countries and parts of the Asia and even the Arabian Peninsula (Kassi, Rathnayake, Louembe, & Ding, 2019).
To begin with, the fact that Alinma has been in the Forbes Magazine firms' growth list indicates a high rate of profitability. In the year ending 31st December 2018, Alinma Bank made a profit of SAR 2. 41 billion (Forbes, 2019). That represented a 19. 6% increment in profitability from the previous year. These changes indicate that the best way to increase a firm's competitive advantage is through enhanced innovation (Wallace, 2017). The Alinma Bank has also been one of the leading innovators in the industry and as the capability to compete fairly in the foreign markets. With the introduction of the Apply Pay app, the travelers’ card, online banking, the Alinma internet, among other products, the company will be one of its kind in the future, especially in the global scene if it makes the international venture.
That is because it will be one of the global firms that can offer international money transfers using both the online platform and mobile applications, and that will be n added advantage since very few banks can do that and it only happens in a handful regions in the world (Sam Liu, 2017). The Alinma Bank will be addressing a huge gap when it comes to making direct international money transfers without having to use the third-party firms like Skrill, PayPal, World Remit, the Western Union, among others. Average clientele When it comes to looking at the average customers per bank, this is an important indicator since it will either show the strain on banking services or provide information on fewer customers and the need for enhanced marketability of various banking products.
If for example, each bank has 1, 000,000 per branch, it shows there are very many clients to be served at a particular instance and at times, there can be delays in service delivery, leading to customer dissatisfaction. That calls for the need for more banking services to take care of the scarcity. However, where there is surplus or more supply than the demand for the services, it is crucial that the company seeking for global market ventures finds ways of competing fairly and gaining a significant market share in the new regions (Tage, Hans, & Rosalina, 2015). As such, evaluating the number of customers per institution is one of the methods to be used in determining the market potential of the industry. Economic Growth Indicators When there is an increase in the Gross Domestic Product of a country, it shows that there is more money circulating in the economy; hence the citizens have an increased marginal propensity to spend in different products.
Increased economic activity in a country shows that various industries, especially the banking sectors, is likely to grow because there will be a rise in the number of transactions, borrowing, and even deposits (Effendi, 2017). Generally, the examination of different indicators of economic growth can be used to determine the market potential of an industry. Government Policies The government policies governing trade and commerce, taxes and tariffs are important considerations when deciding on an investment. Even though there may be the likelihood of high profitability in different industries, such policies can limit profitability. Alinma bank named most innovative for 2018. Retrieved from https://www. alinma. com/wps/portal/alinma/Alinma/!ut/p/z1/04_Sj9CPykssy0xPLMnMz0vMAfIjo8ziff0tTTy8TQy9Lfy9XAwcPc19gwP8HY38DU31w_Wj9KOASgxwAEcD_YLsbEUAntaMnQ!!/dz/d5/L0lDUmlTUSEhL3dHa0FKRnNBLzROV3FpQSEhL2Vu/ Anand, V.
, Soomro, K. aspx?direct=true&db=edo&AN=117180917&site=eds-live&scope=site Dai, N. , Ivanov, V. , & Cole, R. A. Entrepreneurial optimism, credit availability, and cost of financing: Evidence from U. A. The optimization of capital structure in maximizing profit and corporate value. Business Review, 8, 47. doi:10. 21512/bbr. forbes. com/companies/alinma-bank/#73ab424b6d51 Jena, L. K. , Pradhan, S. , & Panigrahy, N. A. , & Ding, N. Market Risk and Financial Performance of Non-Financial Companies Listed on the Moroccan Stocks Exchange. Risks, 7(1), 20. Retrieved: https://www. 1177/1069031X18809999 Koushiki Choudhury, (2014) "Service quality and word of mouth: a study of the banking sector", International Journal of Bank Marketing, Vol. 32 Issue: 7, pp. 612-627, https://doi. org/10. 1108/IJBM-12-2012-0122 Sam Liu, C. ) Entrepreneurship in International Marketing (Advances in International Marketing, Volume 25) Emerald Group Publishing Limited, pp.
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