The strategy provided is focused on analyzing the Ethiopian banking industry's competitive dynamics using Porter's Five Forces model. It includes data gathering, evaluating competitive rivalry, and assessing threats from new entrants and substitutes. Firstly, the plan involves collecting comprehensive industry data such as active banking institutions, market shares, and regulations. For example, this could mean researching key financial products offered and assessing technological adoption in the sector.
Secondly, it focuses on evaluating competitive rivalry by analyzing competitors, business strategies, and the impact of digital banking on traditional services. An example of this might include studying the geographic distribution of banking services and understanding customer loyalty.
Lastly, the strategy involves assessing the threat of new entrants and substitutes by examining barriers to entry, regulatory requirements, and the influence of fintech companies. This might entail researching alternative financial services and the openness of consumers to adopt such services.
The strategies
⛳️ Strategy 1: Gather industry data
- Research and list all active banking institutions within Ethiopia
- Identify key financial products and services offered in the market
- Collect data on market share distribution among the banks
- Examine banking regulations and policies applicable within Ethiopia
- Research recent financial performance of Ethiopian banks
- Collect information about technological adoption in the Ethiopian banking sector
- Examine historical growth trends in banking services
- Identify key economic indicators affecting the banking industry
- Gather information on consumer behaviour in Ethiopian banking
- Review academic and industry publications on Ethiopian banking
⛳️ Strategy 2: Evaluate competitive rivalry
- Analyse the number of competitors and level of competition in the market
- Assess the business strategies of leading banks in Ethiopia
- Examine customer loyalty and switching costs in banking services
- Research recent mergers or partnerships among Ethiopian banks
- Identify any unique selling propositions of banks
- Analyse price competition and interest rate variations
- Evaluate the role of brand reputation in the industry
- Review the geographic distribution of banking services
- Study the impact of digital banking on traditional rivalries
- Create a summary of findings on competitive forces
⛳️ Strategy 3: Assess threat of new entrants and substitutes
- Analyse barriers to entry for new banking institutions
- Examine regulatory and licensing requirements for new banks
- Assess the capital requirements for starting a new bank
- Evaluate the potential threat posed by fintech companies
- Research the availability and adoption of alternative financial services
- Examine consumer openness to switching to alternative banking services
- Identify innovative technologies being used in the banking sector
- Study the impact of foreign banks entering the Ethiopian market
- Evaluate current trends in customer service and satisfaction
- Compile an analysis of potential threats to existing banks
Bringing accountability to your strategy
It's one thing to have a plan, it's another to stick to it. We hope that the examples above will help you get started with your own strategy, but we also know that it's easy to get lost in the day-to-day effort.
That's why we built Tability: to help you track your progress, keep your team aligned, and make sure you're always moving in the right direction.
Give it a try and see how it can help you bring accountability to your strategy.
