Introduction
Barclays bank is one of the oldest banks in the world. Its history dates back in the 17th century when, banking services were being introduced in the United Kingdom. Although the bank has generally been successful over the years, it has encountered numerous challenges. The most recent one was the economic melt down between 2008 and 2009, where many weak financial institutions had to seek bail out from the central government in order to continue with their operations.
Opportunities
Barclays bank is known to seize any available opportunity. According to Malcolm (2001), the bank is still carrying out expansion in various countries in the world. He points out that this is a strategic move aimed at helping its clients to carry out business transactions regardless of their location. He notes that this move has worked very well for Barclays bank because it has continued to record an increase in the number of customers. In addition, he argues that the bank has introduced a number of services to cater for different people in the society. Malcom (2001) further notes that the bank has specifically introduced bank accounts for the youths, business people and salary accounts for the employed. He says this is aimed at addressing the needs of all people in the society.
The bank has entered into a partnership with the English Premier League, where the bank is enjoying the monopoly of being the main sponsor. According to Davidson (2009), this move helps in increasing the bank’s revenue.
Threats
The bank has been facing stiff competition from other financial institutions and specifically the Standard Chattered Bank. This is according to Davidson (2009), who argues that Barclays has found the going tough in the Middle East and in some Asian countries, unlike Standard Chattered that has a huge customer base.
Although the bank has diversified its operations to accommodate the different segments of people in the society, there is a threat from customers who may prefer banking with other banks that are perceived to have a more specialized approach in their operations.
Barclays has been known for closing its branches in a number of countries. According to Malcolm (2001), in the late 1990s, the bank halted its operations in some countries. Therefore, any potential customer may prefer banking with other banks with no such reputation.
Conclusion
The banking sector is a very important one in any country. Therefore, the government’s role should be to encourage more banks to be established to enhance competition. When this happens, it is the consumers who benefit because each bank will lower its charges to attract consumers.
Reference List
Davidson, J., 2009. Corporate strategy. Oxford: Heinemann.
Malcolm, M., 2001. Barclays Bank: Global Companies in the Twentieth Century. London: Taylor and Francis.