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In The Case Of Such Developing Economies As Uzbekistan, Where The Process Of ...

In the case of such developing economies as Uzbekistan, where the process of formulation of economic policy is still on its way, and consequently economic and environmental factors are highly unpredictable (e.g. access to resources can change any time, thus changing the critical success factors of banks), breaking the rank by any player of the financial market with the aim of overtaking the market share from competitor, will be very likely. So, environmental unpredictability brings about tension even in more stable, settled supplier driven markets. In this case, battle would go for the equilibrium customer base, consisting of businesses eager to pay higher interest rates for financial products (Jobber,2002; Kotler,2003, Hill, 2002).
Strategy
As discussed earlier, the bank's objective has, to a great extend, been pre-formulated already while being established, which consisted of rendering high quality, up-to-date banking service, carrying out a set of functions transferred to it from the CBU and attraction of foreign investments.
However, apart from these objectives, business's market objective of increasing the shareholder value by the means of increasing the profit would greatly affect the business strategy as well, if not dominate. So, bank's business has not been limited to dealing with foreign economic activities. It has actively been involved in internal financial market, with the leading position in delivering financial services (CBU,2002).
In markets with the demand by far exceeding the supply for credit resources, the problem of attraction of resources for reallocation would be on top of the agenda as well (Kotler, 2003, Porter 1985, Hill, 2002). CBU loan packages, resources from foreign investors and credit lines from international financial institutions were the resource base of the bank. However, Harrison (2000) highlights a few points which will be present in nearly every type of business, and partly irrespective of its level of dominance, which is confirmed by the current theories of corporate governance (Johnson and Scholes, 2002):
Game theory suggests that players within one market will always be alert of the actions of competitors, therefore will always be trying to gain from the game. But at the same time, with the limited number of players, or huge differences between players with varying degrees of dominance, the alertness may not be the case. Thus, huge expenses on marketing activities and customer satisfaction issues may not have a place.


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