Contents
- Executive Summary 3
- Introduction 4
- An overview of Omani economy 5
- GE Matrix 6
- PESTLE Analysis 7
- Political 8
- Economic 9
- Socio-cultural 10
- Technological 10
- Legal 10
- Environmental 10
- Porter’s Five Point Analysis 11
- Potential Entrants 11
- Competitive Rivalry 12
- Substitutes 12
- Buyers’ Bargaining Power 12
- Suppliers’ Bargaining Power 12
- 7-S Framework of McKinsey 13
- Strategy 13
- Structure 14
- Systems 14
- Skills 15
- Staff 15
- Style 15
- Shared Value 15
- SWOT Analysis 16
- Strength 16
- Weaknesses 16
- Opportunities 16
- Threats 16
- Recommendations 17
- Conclusion 18
- References 19
- Appendix 21
Description
A banking and financial services company wishing to enter Oman has to have a fair idea of the Omani economy before it takes any decision. Omani economy buoyed by petro dollars has fairly strong foundations but petroleum would not last for more than twenty five years and Omani Government is aware of that. It is trying to diversify into tourism and gas based industries and is investing heavily into infrastructure. In such an investment oriented scenario any banking company is bound to succeed and it would not be wrong if Bats Bank takes the decision of entering Omani market. However, it must also be aware of the hurdles it has to overcome in order to be successful in this market. The biggest hurdle is perhaps the cultural hurdle which Bats Bank has to negotiate. Oman is a conservative Islamic country while Bats Bank hails from the liberal climes of western hemisphere. So, it has to be extra cautious about not in any way slighting or showing any form of disrespect to local traditions, mores and customs as it would immediately create a hiatus between itself and local Omani population and become a big roadblock to the creation of mutual trust and faith that is absolutely essential for the success of any banking or financial services company.
Moreover, it should be under no illusion that it would be very easy to become successful in Omani market as there are many well established international and domestic banks that have carved the available market among themselves. So, Bats Bank will face tough competition from these long term players and would find it extremely difficult to create a niche for itself. But if it sticks to the task and is prepared to survive a few years without earning profit it can surely make its Oman foray a commercial success.
The preferred model of entry should be a Wholly Owned Subsidiary which though riskier than a Joint Venture would be more beneficial in the long run.