Another Kuwait Bank Ibrahim Dabdoub Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies

Ibrahim Dabdoub at the National Bank of Kuwait

Q1. Had Dabdoub done all to ensure to achieve 2020 goals

Solution No.1

Dabdoub had made various efforts in order to achieve 2020 goals in the long run. He had invested in many projects for the development of the bank in the long run. He focused on investing in infrastructure projects including oil exploration and refining capacity, power stations, bridges and roads, hospital and schools. The good thing about Ibrahim Dabdoub was that, he successfully handled the environmental threats such as: Al-Manakh Stock Market Crash Iraqi Invasion and the 2008 Global financial crisis. Ibrahim Dabdoub set various standards for the sake of the National Bank of Kuwait. Some of the positive developments that Ibrahim Dabdoub did in order to achieve 2020 goals and to increase the performance of the bank are as follows:

Global Financial Centers
Change the Culture
Regionalization Strategy

Global Financial Centers

Ibrahim Dabdoub organized a policy in the bank to treat the wealthy customers at a higher level in order to satisfy them. As per the instructions of the Ibrahim Dabdoub, National Bank of Kuwait opened global financial centers in New York, Singapore and London improve the performance of the bank and attract wealthier customers. He thought as a result of giving importance to the customers, favors the bank in the long run and add more valuable customers in the bank. He always aimed to treat customers as a king, satisfaction of one customer means that at least ten new customers will be added in the future. NBK realized that due to the rapid increase in the middle class, it is a great opportunity for the bank to strengthen the customer base.

Change the Culture

Ibrahim Dabdoub totally changed the entire culture within the organization to gain competitive advantage. The goal of the NBK was to target the Kuwaiti merchants for the sake of the bank’s interest. In order to achieve it, Ibrahim Dabdoub designed several new policies to attract the Kuwait wealthier customers. He realized that by targeting the Kuwaiti merchants is the only way to grow the business in the long run. He advised all the employees to treat the customers up to a higher level of satisfaction. Culture in the organization changed entirely due to this approach and benefited the NBK tremendously.

Regionalization Strategy

Regionalization refers to dividing a market into smaller groups of segments called regions. Ibrahim Dabdoub implemented regionalization strategy to efficiently manage the bank’s operations. The Dabdoub’s strategy was to monitor the performance of all the institutions efficiently and effectively, strategy was based on creating the branches at the regional level to expand the business. National Bank of Kuwait was one of the leading banks in the Arab region having branches at international level. Regionalization strategy enhanced the performance of the NBK at global level. Each branch in the country had its one set of rules and procedures as per the country’s policy. In every area, mostly native individuals were working because Dabdoub thought that they better understand the scenario in the country. The idea of developing regions was favorable for NBK because native employees were completely aware of the customer behavior more than anybody else.

Q.2. What would give NBK the competitive edge in the future?

Solution No.2

NBK adopted various practices in order to gain competitive advantage in the long run. The performance of the National Bank of Kuwait was rapidly increasing in 2012, it remained one of the top leading financial institutions in the Kuwait. The asset accumulation of $ 58 billion has rapidly increased the market share. Consequently, there was an ample improvement in all the business segments and branches. National Bank of Kuwait has successfully gained competitive advantage over the other players in the industry, Kuwait Finance House was the only bank of the same amount of net profit and market share. Some of the factors that would give National Bank of Kuwait the competitive advantage are:

Islamic Banking and Conventional Banking
Global Expansion
Target GCC Industry

Islamic Banking and Conventional Banking

To offer the services in both conventional and Islamic banking would be very vital for the National Bank of Kuwait in the future. In this way they can target the different types of customers simultaneously and can strengthen their customer base. Islamic banking will be very beneficial for NBK in the GCC region, because Muslim customers prefer the mode of Islamic banking in the region. In the Arab region, most people belong from Muslim society so it would .....................

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