Principles of Strategic Management – Capitec Case Analysis 1) Capitec had the capability to identify a potential gap in the market for unbanked lower income individuals at a time when competitors were not acting on this. Capitec identified flaws in the current banking industry‚ with the customer’s perception of banks being that of high fees‚ poor customer service and lengthy procedures (Pitman‚ 2011). The cornerstone of Capitec’s success lies in their awareness of the importance of knowing their
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Resources and capabilities of capitec bank: 1. What resources and capabilities made Capitec successful? Capabilities- The individuals who came together to start Capitec came from a strong financial and micro-lending background; they had a very good understanding of the banking systems. They started this business well equipped. Resources- Capitec was originally capitalized with R350 million was worth R2.2 billion and the results which were released in September 2006 showed a 23% return on
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banking sector it has achieved great success in terms of its value proposition to a previously unbanked market. Their clean and simple offering has not only provided operational efficiencies it has allowed it to maximize revenue in all transactions. Capitec case analysis Table of Contents PESTEL 1 Political/Legislative 1 Economic 1 Social/Environmental 1 Technological 1 Porters-5-Forces 1 Threat of new entrants 1 Threat of Substitutes 1 Competitive Rivalry 2 Supplier Power 2
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Wits Business School WBS-2006-21 Capitec Bank: Low-Cost Banking for Joe Average By December 2006‚ Capitec Bank‚ South Africa’s newest listed retail bank‚ had come a long way from its origins as a microlending organisation in 2001. Over time it had started introducing other banking services to its entry-level clients‚ so that by 2006 it offered all the basic banking services‚ namely lending‚ transacting and savings. Capitec’s chief executive for marketing and corporate affairs‚ Carl Fischer
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Capitec Bank: The implementation of a successful Bottom of the Pyramid Strategy. Introduction History shows that the South African banking sector has predominately focused on middle to upper class income groups in the market‚ whilst neglecting the needs and demands of low income groups (Manson‚ 2012). Capitec Bank on the other hand‚ focused on the needs of these low income groups‚ creating a business model that was specifically tailored to their needs. Capitec was introduced in the
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Future challenges of Capitec and South African Industry The PWC Retail Banking 2020 Report indicated that there are several challenges that banks will face going into the future emanating from Customer expectations‚ technological capabilities‚ regulatory requirements‚ demographics and economic developments. According to the report the challenges will include amongst others:- The continuous increase in non-traditional competitors such as retailers and mobile service providers offering similar or
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Project Report On “ CAPITEC bank (South Africa) implementing the Bottom of Pyramid strategy ” Submitted To: Dr.Veena Dutta Prepared By: Fagun Naiyyer PGDM 2011-13 11GM021 Executive Summary Little research has yet been undertaken in South Africa about commercial banks that are servicing the microenterprise and micro lending market. The objective of this project was to investigate the key factors that should be considered by capitec bank in South Africa servicing the microenterprise market.
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the vast majority of the un-banked South African population. Capitec bank is a relatively small independent bank with roots in the micro lending sector. Capitec Banks strategic plan in 2007 focused on positioning itself as a proper bank in a much broader target market which is a change from its prior strategic focus as a micro lending organisation. Figure 1 shows the components of the external and external environment in relation to Capitec Bank. External Enviroment Internal Environment * Employees
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International Business Assignment 2 – Memo for Module 2 Nov 18‚ 2014 Nigeria: Opportunities at the Bottom of the Pyramid In Nigeria‚ 50 percent of population lived on less than one US dollar per day. Of this‚ 65 percent lived in rural areas. A direct result of this could be seen on the handset ownership among the rural poor (one percent). The absence of a reliable national electricity grid in these areas raised the issue of higher operating costs for the mobile service provider due to running
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the management process involves. 3 Explain. 4 Understand the differences between the various levels of management. 5 Understand the three main managerial skills and at what managerial level they are dominant. A South African insight: Capitec Bank: Meeting the needs of customers by making banking affordable and accessible. Managers and management l Human needs and wants l What is an organization? l Organizations as systems What managers do l General managerial tasks l
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