Blom Bank Qatar : strategic market entry

Abstract

We are living in a world full of relentless change due to the vast effects of globalization. Thus, it is essential to think ahead and be part of this ongoing transformation. This initiative falls within the BLOM bank's vision to be everybody's bank for life and spread services far and wide where it is needed around the globe. Despite the difficult economic and political situation looming over Lebanon since 2005 and beyond the general banking risk that BLOM Bank is exposed to, the bank's strategy is still to grow and increase its earning power through expansion, increase in assets, and maximization of net earnings. As a result of the bank's expansion policy, we are going to cover in this study all the necessary steps needed to set up a branch in a new market; given the historical and significant relationship between Lebanon and the Gulf region, there is a strong case for a Lebanese bank to come and participate in Qatar's rapidly growing financial market. The study starts by identifying the opportunity perceived followed by an overview of the Lebanese banking industry and BLOM bank capabilities to see a clear vision on the current situation. Then, we intend to cover up the market selection accompanied by an overview of Qatar's banking industry and profile risk with a deep analysis to competition. After this, we start by crafting the market entry strategy and ask how, when and where we are going to enter with a detailed organization plan. We conclude on how to make this whole process work and what is the next step forward. The launch of a new branch in Qatar through a foreign direct investment should expand the scope of the bank and provide it with new opportunities since Qatar is currently the most promising and booming market in the region. According to our research findings this market entry will outperform all previous entries to the region relying on the guerrilla tactics entry approach and the unique extraordinary increase in all banking performance indicators in Qatar. So applying a successful market entry through allocating the best resources in the right place and time will make the bank ride the wave of economic boom in Qatar thus generating high return and opening new doors for the future.