Published by MBA Skool Team, Last Updated: April 26, 2020
SWOT analysis of First Rand Bank analyses the brand by its strengths, weaknesses, opportunities & threats. In First Rand Bank SWOT Analysis, the strengths and weaknesses are the internal factors whereas opportunities and threats are the external factors.
SWOT Analysis is a proven management framework which enables a brand like First Rand Bank to benchmark its business & performance as compared to the competitors. First Rand Bank is one of the leading brands in the banking & financial services sector.
The article below lists the First Rand Bank SWOT (Strengths, Weaknesses, Opportunities, Threats), top First Rand Bank competitors and includes its target market, segmentation, positioning & Unique Selling Proposition (USP).
The banking group is one of the largest banks in South Africa.
First Rand Bank STP
South African savers and home owners.
South African nationals and corporate.
The bank aims to be South Africa’s bank of choice.
SWOT Analysis of First Rand Bank
For First Rand Bank, SWOT analysis can help the brand focus on building upon its strengths and opportunities while addressing its weaknesses as well as threats to improve its market position. Let us start the First Rand Bank SWOT Analysis:
First Rand Bank Strengths
The strengths of First Rand Bank looks at the key aspects of its business which gives it competitive advantage in the market. Some important factors in a brand's strengths include its financial position, experienced workforce, product uniqueness & intangible assets like brand value. Below are the Strengths in the SWOT Analysis of First Rand Bank :
1. First Rand Banking group forms one of the largest banks in South Africa and whole of sub-Saharan Africa. 2. The bank has operations in India as well as in Australia. It also has operations in 5 neighboring African countries
3. The bank has very strong total assets 4. The bank operations are supported by a strong staff of over 37000. It has over 800 branches or equivalent centers.
5. The ordinary dividend per share has been increased substantially, which is a strong indication of sustained growth in the future.
6. The bank has been engaged in a lot of socially responsible activities such as funding for food security, education, environment etc.
7. The bank has seen a steady increase in its Return on Equity (ROE)
First Rand Bank Weaknesses
The weaknesses of a brand are certain aspects of its business which are it can improve to increase its position further. Certain weaknesses can be defined as attributes which the company is lacking or in which the competitors are better. Here are the weaknesses in the First Rand Bank SWOT Analysis:
1. The unstable political conditions in some of the African countries can affect the operations of the bank in an adverse manner. 2. The credit rating agencies have rated First Rand bonds as BBB and outlook as negative (S&P ratings). The sovereign rating of South Africa as a whole is BBB.
First Rand Bank Opportunities
The opportunities for any brand can include areas of improvement to increase its business. A brand's opportunities can lie in geographic expansion, product improvements, better communication etc. Following are the opportunities in First Rand Bank SWOT Analysis:
1. The bank can expand its international operations, especially in relatively more stable economies such as Australia and India. 2. The bank can come up with innovative schemes which can unleash the potential in emerging economies. 3. The bank can acquire other banks and expand its operations through M&A activities.
First Rand Bank Threats
The threats for any business can be factors which can negatively impact its business. Some factors like increased competitor activity, changing government policies, alternate products or services etc. can be threats. The threats in the SWOT Analysis of First Rand Bank are as mentioned:
1. The bank faces the risk of the other party not meeting their obligations, resulting in bad debt. 2. The bank faces risk of being exposed to foreign exchange rate volatility since it has operations overseas. 3. Regulatory changes in South Africa as well as countries such as India and Australia can affect the operations of the bank adversely.
First Rand Bank Competitors
There are several brands in the market which are competing for the same set of customers. Below are the top 3 competitors of First Rand Bank:
1. Standard Bank of South Africa 2.African Bank Ltd. 3. Imperial Bank South Africa Ltd.
This article has been researched & authored by the Content & Research Team. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.
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