Abstract
M. Com
The 200 years of South African banking history has been a turbulent mix of
crisis and triumph. Banks have had to respond to changes in their
environment ranging from wars and the discovery of gold and diamonds, to
regulatory changes, disinvestment and township bond boycotts. With the
phasing out of sanctions, international opportunities started to emerge and
South African banks were quick to respond. International and local
competition has increased and it has become necessary for banks to put
more emphasis on obtaining a competitive advantage.
Optimists like to speak of South Africa as the "powerhouse of Africa" and
the natural investment home for foreign investors wanting a foothold in the
African market. It has therefore become necessary to do a "SWOT" analysis
(Strengths and weaknesses, opportunities and threats) to be able to
formulate a competitive strategy.
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This dissertation comprises of an environmental analysis which includes a
study of the macro-environment, international environment and the analysis
of Porter's five basic forces. This environmental analysis leads to the
establishing of local and international competitive strategies.
South Africa has a competitive edge on other countries of its size and
development levels in the sense that it has a very adaptable economy. The
fact that South Africa is seen as the "gateway to Africa" should be exploited
by South African banks. The changing and uncertain environment in South
Africa must be seen as an opportunity for international departments of
commercial banks to enrich themselves and their employees.
This dissertation has shown that local banks do not have an advantage over
international banks. From this follows a recommendation that local banks
should develop and maintain a competitive advantage and focus on African
business.