Ibrahim Dabdoub at the National Bank of Kuwait SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Strategy & Execution
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Ibrahim Dabdoub at the National Bank of Kuwait
Ibrahim Dabdoub, the Group chief executive of the National Bank of Kuwait (NBK), reflects on his past 30 years at the helm of the Bank. Under his leadership, NBK grew from a small local bank to one of the preeminent financial institutions in the region. However, following the global financial crisis of 2008 and the Arab Spring, NBK had to slow its regional expansion. Dabdoub wonders if the Bank is positioned to thrive and fulfill its collective ambition to become the Arab regional bank by 2020.
Swot Analysis of "Ibrahim Dabdoub at the National Bank of Kuwait" written by Linda A. Hill, Dana M. Teppert includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Dabdoub Nbk facing as an external strategic factors. Some of the topics covered in Ibrahim Dabdoub at the National Bank of Kuwait case study are - Strategic Management Strategies, Growth strategy, Leadership, Leadership development, Leading teams, Strategy execution and Strategy & Execution.
Some of the macro environment factors that can be used to understand the Ibrahim Dabdoub at the National Bank of Kuwait casestudy better are - – increasing government debt because of Covid-19 spendings, there is backlash against globalization, customer relationship management is fast transforming because of increasing concerns over data privacy, geopolitical disruptions, banking and financial system is disrupted by Bitcoin and other crypto currencies, increasing energy prices, challanges to central banks by blockchain based private currencies,
supply chains are disrupted by pandemic , technology disruption, etc
Introduction to SWOT Analysis of Ibrahim Dabdoub at the National Bank of Kuwait
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Ibrahim Dabdoub at the National Bank of Kuwait case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Dabdoub Nbk, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Dabdoub Nbk operates in.
According to Harvard Business Review, 75% of the managers use SWOT analysis for various purposes such as – evaluating current scenario, strategic planning, new venture feasibility, personal growth goals, new market entry, Go To market strategies, portfolio management and strategic trade-off assessment, organizational restructuring, etc.
SWOT Objectives / Importance of SWOT Analysis and SWOT Matrix
SWOT analysis of Ibrahim Dabdoub at the National Bank of Kuwait can be done for the following purposes –
1. Strategic planning using facts provided in Ibrahim Dabdoub at the National Bank of Kuwait case study
2. Improving business portfolio management of Dabdoub Nbk
3. Assessing feasibility of the new initiative in Strategy & Execution field.
4. Making a Strategy & Execution topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Dabdoub Nbk
Strengths Ibrahim Dabdoub at the National Bank of Kuwait | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Dabdoub Nbk in Ibrahim Dabdoub at the National Bank of Kuwait Harvard Business Review case study are -
Organizational Resilience of Dabdoub Nbk
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Dabdoub Nbk does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Diverse revenue streams
– Dabdoub Nbk is present in almost all the verticals within the industry. This has provided firm in Ibrahim Dabdoub at the National Bank of Kuwait case study a diverse revenue stream that has helped it to survive disruptions such as global pandemic in Covid-19, financial disruption of 2008, and supply chain disruption of 2021.
Highly skilled collaborators
– Dabdoub Nbk has highly efficient outsourcing and offshoring strategy. It has resulted in greater operational flexibility and bringing down the costs in highly price sensitive segment. Secondly the value chain collaborators of the firm in Ibrahim Dabdoub at the National Bank of Kuwait HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Operational resilience
– The operational resilience strategy in the Ibrahim Dabdoub at the National Bank of Kuwait Harvard Business Review case study comprises – understanding the underlying the factors in the industry, building diversified operations across different geographies so that disruption in one part of the world doesn’t impact the overall performance of the firm, and integrating the various business operations and processes through its digital transformation drive.
Training and development
– Dabdoub Nbk has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Ibrahim Dabdoub at the National Bank of Kuwait Harvard Business Review case study by analyzing – employees retention, in-house promotion, loyalty, new venture initiation, lack of conflict, and high level of both employees and customer engagement.
High switching costs
– The high switching costs that Dabdoub Nbk has built up over years in its products and services combo offer has resulted in high retention of customers, lower marketing costs, and greater ability of the firm to focus on its customers.
Ability to lead change in Strategy & Execution field
– Dabdoub Nbk is one of the leading players in its industry. Over the years it has not only transformed the business landscape in its segment but also across the whole industry. The ability to lead change has enabled Dabdoub Nbk in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Digital Transformation in Strategy & Execution segment
- digital transformation varies from industry to industry. For Dabdoub Nbk digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Dabdoub Nbk has successfully integrated the four key components of digital transformation – digital integration in processes, digital integration in marketing and customer relationship management, digital integration into the value chain, and using technology to explore new products and market opportunities.
Successful track record of launching new products
– Dabdoub Nbk has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Dabdoub Nbk has effective processes in place that helps in exploring new product needs, doing quick pilot testing, and then launching the products quickly using its extensive distribution network.
Innovation driven organization
– Dabdoub Nbk is one of the most innovative firm in sector. Manager in Ibrahim Dabdoub at the National Bank of Kuwait Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Low bargaining power of suppliers
– Suppliers of Dabdoub Nbk in the sector have low bargaining power. Ibrahim Dabdoub at the National Bank of Kuwait has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Dabdoub Nbk to manage not only supply disruptions but also source products at highly competitive prices.
Learning organization
- Dabdoub Nbk is a learning organization. It has inculcated three key characters of learning organization in its processes and operations – exploration, creativity, and expansiveness. The work place at Dabdoub Nbk is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Ibrahim Dabdoub at the National Bank of Kuwait Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Weaknesses Ibrahim Dabdoub at the National Bank of Kuwait | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Ibrahim Dabdoub at the National Bank of Kuwait are -
Increasing silos among functional specialists
– The organizational structure of Dabdoub Nbk is dominated by functional specialists. It is not different from other players in the Strategy & Execution segment. Dabdoub Nbk needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Dabdoub Nbk to focus more on services rather than just following the product oriented approach.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Ibrahim Dabdoub at the National Bank of Kuwait, it seems that the employees of Dabdoub Nbk don’t have comprehensive understanding of the firm’s strategy. This is reflected in number of promotional campaigns over the last few years that had mixed messaging and competing priorities. Some of the strategic activities and services promoted in the promotional campaigns were not consistent with the organization’s strategy.
Capital Spending Reduction
– Even during the low interest decade, Dabdoub Nbk has not been able to do capital spending to the tune of the competition. This has resulted into fewer innovations and company facing stiff competition from both existing competitors and new entrants who are disrupting the industry using digital technology.
Low market penetration in new markets
– Outside its home market of Dabdoub Nbk, firm in the HBR case study Ibrahim Dabdoub at the National Bank of Kuwait needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
High operating costs
– Compare to the competitors, firm in the HBR case study Ibrahim Dabdoub at the National Bank of Kuwait has high operating costs in the. This can be harder to sustain given the new emerging competition from nimble players who are using technology to attract Dabdoub Nbk 's lucrative customers.
High dependence on existing supply chain
– The disruption in the global supply chains because of the Covid-19 pandemic and blockage of the Suez Canal illustrated the fragile nature of Dabdoub Nbk supply chain. Even after few cautionary changes mentioned in the HBR case study - Ibrahim Dabdoub at the National Bank of Kuwait, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Dabdoub Nbk vulnerable to further global disruptions in South East Asia.
Lack of clear differentiation of Dabdoub Nbk products
– To increase the profitability and margins on the products, Dabdoub Nbk needs to provide more differentiated products than what it is currently offering in the marketplace.
High bargaining power of channel partners
– Because of the regulatory requirements, Linda A. Hill, Dana M. Teppert suggests that, Dabdoub Nbk is facing high bargaining power of the channel partners. So far it has not able to streamline the operations to reduce the bargaining power of the value chain partners in the industry.
No frontier risks strategy
– After analyzing the HBR case study Ibrahim Dabdoub at the National Bank of Kuwait, it seems that company is thinking about the frontier risks that can impact Strategy & Execution strategy. But it has very little resources allocation to manage the risks emerging from events such as natural disasters, climate change, melting of permafrost, tacking the rise of artificial intelligence, opportunities and threats emerging from commercialization of space etc.
Workers concerns about automation
– As automation is fast increasing in the segment, Dabdoub Nbk needs to come up with a strategy to reduce the workers concern regarding automation. Without a clear strategy, it could lead to disruption and uncertainty within the organization.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Dabdoub Nbk is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Ibrahim Dabdoub at the National Bank of Kuwait can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Opportunities Ibrahim Dabdoub at the National Bank of Kuwait | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities highlighted in the Harvard Business Review case study Ibrahim Dabdoub at the National Bank of Kuwait are -
Reconfiguring business model
– The expansion of digital payment system, the bringing down of international transactions costs using Bitcoin and other blockchain based currencies, etc can help Dabdoub Nbk to reconfigure its entire business model. For example it can used blockchain based technologies to reduce piracy of its products in the big markets such as China. Secondly it can use the popularity of e-commerce in various developing markets to build a Direct to Customer business model rather than the current Channel Heavy distribution network.
Learning at scale
– Online learning technologies has now opened space for Dabdoub Nbk to conduct training and development for its employees across the world. This will result in not only reducing the cost of training but also help employees in different part of the world to integrate with the headquarter work culture, ethos, and standards.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Dabdoub Nbk can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Dabdoub Nbk is facing challenges because of the dominance of functional experts in the organization. Ibrahim Dabdoub at the National Bank of Kuwait case study suggests that firm can utilize new technology to build more coordinated teams and streamline operations and communications using tools such as CAD, Zoom, etc.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Strategy & Execution industry, but it has also influenced the consumer preferences. Dabdoub Nbk can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Leveraging digital technologies
– Dabdoub Nbk can leverage digital technologies such as artificial intelligence and machine learning to automate the production process, customer analytics to get better insights into consumer behavior, realtime digital dashboards to get better sales tracking, logistics and transportation, product tracking, etc.
Buying journey improvements
– Dabdoub Nbk can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Ibrahim Dabdoub at the National Bank of Kuwait suggest that firm can provide automated chats to help consumers solve their own problems, provide online suggestions to get maximum out of the products and services, and help consumers to build a community where they can interact with each other to develop new features and uses.
Building a culture of innovation
– managers at Dabdoub Nbk can make experimentation a productive activity and build a culture of innovation using approaches such as – mining transaction data, A/B testing of websites and selling platforms, engaging potential customers over various needs, and building on small ideas in the Strategy & Execution segment.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Dabdoub Nbk can use these opportunities to build new business models that can help the communities that Dabdoub Nbk operates in. Secondly it can use opportunities from government spending in Strategy & Execution sector.
Creating value in data economy
– The success of analytics program of Dabdoub Nbk has opened avenues for new revenue streams for the organization in the industry. This can help Dabdoub Nbk to build a more holistic ecosystem as suggested in the Ibrahim Dabdoub at the National Bank of Kuwait case study. Dabdoub Nbk can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Changes in consumer behavior post Covid-19
– Consumer behavior has changed in the Strategy & Execution industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Dabdoub Nbk can take advantage of these changes in consumer behavior to build a far more efficient business model. For example consumer regular ordering of products can reduce both last mile delivery costs and market penetration costs. Dabdoub Nbk can further use this consumer data to build better customer loyalty, provide better products and service collection, and improve the value proposition in inflationary times.
Using analytics as competitive advantage
– Dabdoub Nbk has spent a significant amount of money and effort to integrate analytics and machine learning into its operations in the sector. This continuous investment in analytics has enabled, as illustrated in the Harvard case study Ibrahim Dabdoub at the National Bank of Kuwait - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Dabdoub Nbk to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Use of Bitcoin and other crypto currencies for transactions
– The popularity of Bitcoin and other crypto currencies as asset class and medium of transaction has opened new opportunities for Dabdoub Nbk in the consumer business. Now Dabdoub Nbk can target international markets with far fewer capital restrictions requirements than the existing system.
Threats Ibrahim Dabdoub at the National Bank of Kuwait External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Ibrahim Dabdoub at the National Bank of Kuwait are -
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Dabdoub Nbk can face downward pressure on margins from increasing competition from international players. The international players have stable revenue in their home market and can use those resources to penetrate prominent markets illustrated in HBR case study Ibrahim Dabdoub at the National Bank of Kuwait .
High dependence on third party suppliers
– Dabdoub Nbk high dependence on third party suppliers can disrupt its processes and delivery mechanism. For example -the current troubles of car makers because of chip shortage is because the chip companies started producing chips for electronic companies rather than car manufacturers.
Shortening product life cycle
– it is one of the major threat that Dabdoub Nbk is facing in Strategy & Execution sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
New competition
– After the dotcom bust of 2001, financial crisis of 2008-09, the business formation in US economy had declined. But in 2020 alone, there are more than 1.5 million new business applications in United States. This can lead to greater competition for Dabdoub Nbk in the Strategy & Execution sector and impact the bottomline of the organization.
Regulatory challenges
– Dabdoub Nbk needs to prepare for regulatory challenges as consumer protection groups and other pressure groups are vigorously advocating for more regulations on big business - to reduce inequality, to create a level playing field, to product data privacy and consumer privacy, to reduce the influence of big money on democratic institutions, etc. This can lead to significant changes in the Strategy & Execution industry regulations.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Dabdoub Nbk with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Technology disruption because of hacks, piracy etc
– The colonial pipeline illustrated, how vulnerable modern organization are to international hackers, miscreants, and disruptors. The cyber security interruption, data leaks, etc can seriously jeopardize the future growth of the organization.
Technology acceleration in Forth Industrial Revolution
– Dabdoub Nbk has witnessed rapid integration of technology during Covid-19 in the Strategy & Execution industry. As one of the leading players in the industry, Dabdoub Nbk needs to keep up with the evolution of technology in the Strategy & Execution sector. According to Mckinsey study top managers believe that the adoption of technology in operations, communications is 20-25 times faster than what they planned in the beginning of 2019.
Backlash against dominant players
– US Congress and other legislative arms of the government are getting tough on big business especially technology companies. The digital arm of Dabdoub Nbk business can come under increasing regulations regarding data privacy, data security, etc.
Stagnating economy with rate increase
– Dabdoub Nbk can face lack of demand in the market place because of Fed actions to reduce inflation. This can lead to sluggish growth in the economy, lower demands, lower investments, higher borrowing costs, and consolidation in the field.
Instability in the European markets
– European Union markets are facing three big challenges post Covid – expanded balance sheets, Brexit related business disruption, and aggressive Russia looking to distract the existing security mechanism. Dabdoub Nbk will face different problems in different parts of Europe. For example it will face inflationary pressures in UK, France, and Germany, balance sheet expansion and demand challenges in Southern European countries, and geopolitical instability in the Eastern Europe.
Consumer confidence and its impact on Dabdoub Nbk demand
– There is a high probability of declining consumer confidence, given – high inflammation rate, rise of gig economy, lower job stability, increasing cost of living, higher interest rates, and aging demography. All the factors contribute to people saving higher rate of their income, resulting in lower consumer demand in the industry and other sectors.
Environmental challenges
– Dabdoub Nbk needs to have a robust strategy against the disruptions arising from climate change and energy requirements. EU has identified it as key priority area and spending 30% of its 880 billion Euros European post Covid-19 recovery funds on green technology. Dabdoub Nbk can take advantage of this fund but it will also bring new competitors in the Strategy & Execution industry.
Weighted SWOT Analysis of Ibrahim Dabdoub at the National Bank of Kuwait Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers in the HBR case study Ibrahim Dabdoub at the National Bank of Kuwait needs to zero down on the relative importance of each factor mentioned in the Strengths, Weakness, Opportunities, and Threats quadrants.
We can provide the relative importance to each factor by assigning relative weights. Weighted SWOT analysis process is a three stage process –
First stage for doing weighted SWOT analysis of the case study Ibrahim Dabdoub at the National Bank of Kuwait is to rank the strengths and weaknesses of the organization. This will help you to assess the most important strengths and weaknesses of the firm and which one of the strengths and weaknesses mentioned in the initial lists are marginal and can be left out.
Second stage for conducting weighted SWOT analysis of the Harvard case study Ibrahim Dabdoub at the National Bank of Kuwait is to give probabilities to the external strategic factors thus better understanding the opportunities and threats arising out of macro environment changes and developments.
Third stage of constructing weighted SWOT analysis of Ibrahim Dabdoub at the National Bank of Kuwait is to provide strategic recommendations includes – joining likelihood of external strategic factors such as opportunities and threats to the internal strategic factors – strengths and weaknesses. You should start with external factors as they will provide the direction of the overall industry. Secondly by joining probabilities with internal strategic factors can help the company not only strategic fit but also the most probably strategic trade-off that Dabdoub Nbk needs to make to build a sustainable competitive advantage.