PRESENTED BY: JAGADISH PRASAD BIST MBA 2ND MANAGEMENT ACCOUNTING

Introduction
This is the research based article, written by Indra Bahadur

Bohara ( MBS, MPA, M.PHIL)

Competitor identification is a key task for managers interested in

scanning their competitive environment, shoring up their defenses against likely competitive incursions, and planning competitive attack and response strategies. rivals, or track competitive moves and countermoves

Before one can assess the relative strengths and weaknesses of

one must identify the competitive set and develop an accurate

sense of the province in which strategic interactions are likely to occur.

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Introduction
Competitor accounting analysis is a very use full tool of

strategic management accounting. competitors.

It analyses the attitude, nature and behavior of This study focuses on the most crucial aspects of

competitor analysis .

This study brings together insights from the field of

strategic management and marketing to develop a simple but powerful tool for helping managers to overcome from their common problem.
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Purpose Of The Study

The study mainly aims at providing a set of tactical

frameworks for the identification of competitor and competitor accounting analysis.

Specifically it is aimed at ascertaining ,

- how to get competitive advantages over the competitors - how to confront with competitors effectively - competitive position of NABIL bank in comparison with SCBNL and EBL ltd.
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Significance Of The Study

The study facilitates the Nepalese banks, Government,

Students and Businessman the current practices of banks in getting competitive advantage
It is also help to understand how to use different tools

and techniques to find actual competitors.

It will be helpful for other researchers.

Study Methodology
The study is based on qualitative and quantitative data for secondary data. A sample 13 commercial banks is selected for competitor identification and

analysis.

A questionnaire survey among the managers to employees of NABIL,

SCBNL, EBL bank ltd was conducted to know the competitive strength, position, and advantages.
analyzed, such as: - descriptive statistics - correlation coefficient - multiple regression - cluster analysis, and - SWOT analysis

To identify the competitors and their position different statistical tools are

Cluster Analysis For Competitor Identification

for the cluster analysis researcher had used correlation

coefficient matrix of 13 selected bank of Nepal.

Three major competitors are found based on high

correlation between the variables. They are NABIL bank, SCBNL, and Everest bank limited.
Used variables are net worth per share, revenues, EPS,

DPS, MPS, NP, interest paid, and PE ratio of selected banks.

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Multiple Regression Analysis

The different types of data of three competitor banks (

NABIL, SCBNL, and EBL) have been collected and analyzed. Regression model: Y = 0 + 1x1 + 2X2 + 3X3 + 4X4 + ei Where : Y = overall net income X1 = net investment X2 = deposit X3 = revenue x4 = loan E = error term of the data set
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Multiple Regression Analysis

The regression model of NABIL: Y = 1553.64 + 0.2185x1 0.25X2 + 0.16X3 + 0.058X4 The regression model of SCBNL: Y = 583.522 + 0.0.138x1 0.087X2 + 0.205X3 + 0.075X4

The regression model of EBL: Y = -19.415 + 0.064x1 0.080X2 + 0.077X3 + 0.115X4

From the point view of profit NABIL bank has the competitive

advantage over the competitors.

Correlation Co-efficient Analysis

Profit And Other Variable
1.2 1 0.8 0.6 0.4 0.2

Correlation between net

profit and other variables of NABIL bank is POOR. SCBNL and EBL have a NABIL good relation between SCBNL profit and other variable EBL So, NABIL bank has threats from other two banks

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Analysis of average deposits

45000 40000 35000

AVERAGE DEPOSIT ( Rs)

In term of the

30000
25000 20000 15000 10000 5000 0

deposit among 13 banks MBL is the competitor for NABIL banks

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Analysis Of Average Interest Rate

AVERAGE INTEREST ON LOAN

14 12 10 8 6 4 2 0

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Analysis Of Average Deposit Rate

6 5 4 3 2 1 0

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Analysis Of Comparative Financial Position

This is the analysis of financial position of three major

competitors (NABIL, SCBNL, and EBL bank) Researcher include: a). Analysis of return - Return on equity - Return on assets b). Analysis of liquidity position - Current ratio

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Analysis Of Return
80 70

Return on equity (%)

In term of the return

60
50 40 30 20 10

0 2003/04 2004/05 2005/06

NABIL SCBNL EBL

2006/07 2007/08

on equity , NABIL bank has no comparatively better position than other. Everest bank has the competitive advantage.

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Analysis Of Return
Return on assets (%)
NABIL bank has
10 9 8 7 6 5 4 3 2 1

better position in term of return on assets

NABIL SCBNL

EBL

0
2003/04 2004/05 2005/06 2006/07 2007/08
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Analysis Of Liquidity Position

Current ratio
1.2

Current ratio of

1.15

NABIL bank is seems good but it is in decreasing trend.

1.1

1.05

NABIL

SCBNL
EBL

0.95

2003/04

2004/05

2005/06

2006/07

2007/08
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Analysis based on the primary data

SWOT analysis
Responses towards the bank Analysis of competitive position

Analysis of potential threats

Analysis of employees satisfaction Nature of competitors

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SWOT Analysis
Strength
NABIL
Quality services

SCBNL
Public faith

EBL
Growing bankers

High bonus
Staffers stability Moderate services More ATM services Well trained staffers International networking

High bonus
Less permanency Fast services More ATM services Professional Worldwide banking services

Not fixed bonus

More new staffers Easy way to get loan other services Reliable services Young and energetic Limited area, less banking services in urban, Complete and full reporting system
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Weakness
NABIL SCBNL EBL Excessive Less permanency in More new staffers Formalities in loan staffers Delay in services Excessive investigation of its clients More banking services in urban Less ATM services

More banking services in urban

Less banking services Complete information

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Incomplete report Not satisfactory to the public report reporting

Opportunities
NABIL
More market expansion

SCBNL
More market expansion

EBL
Possibility of expansion

More transaction

More profitability

More profitability

E-banking services E-banking services E-banking services

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Threats
NABIL Threat of EBL Minimum 50 branches Discontinue and transfer to SCBNL SCBNL Threat of NABIL Minimum 50 branches Discontinue and transfer to NABIL EBL Less possibility Minimum 50 branches Threat from other bank to discontinue and transfer to NABIL, SCBNL, and other
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Responses to wards the banks

This is a questionnaire survey conducted by the researcher

in order to find the average rank indicated by the respondents relating to the thinking towards the bank in to different service areas.
Though some individual services shows that NABIL bank

has comparatively good position, in overall researcher found that NABIL bank has not comparatively good position than SCBNL and EBL.
So, SCBNL and EBL are the competitors of NABIL bank ltd.
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Analysis of competitive position

statements mean NOBIL bank SD Vriance mean SCBNL SD Vriance mean EVEREST bank SD Variance

profitability position public relation financial performance corporate responsibility quality service

3.27 3.56 2.9 3.27 3.9

1.12 1.34 1.04 1.14 1.11

1.25 1.8 1.09 1.95 1.24

2.72 3.55 3.34 2.52 2.93

1.46 1.18 1.47 1.18 1.6

2.14 1.4 2.16 1.4 2.57

3.22 3.17 2.83 2.39 3.43

1.35 1.44 1.47 1.16 1.53

1.81 2.06 2.15 1.34 2.35

branch expansion
uniqueness in service offering quick accessibility

4.15
3.51 4.59 3.44 3.68

1.3
0.95 0.84 1.31 0.96

1.68
0.91 0.7 1.7 0.92

3.55
3.76 4.21 2.72 2.97

1.25
1.15 1.08 1.56 1.02

1.61
1.33 1.17 1.42 1.03

3.78
3.3 4 2.96 3.09

1.35
1.22 1.28 1.36 0.85

1.81
1.49 1.64 1.86
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international wide branch network

online services

0.72

Analysis of potential threats

statements
mean

NOBIL bank
SD Vriance mean

SCBNL
SD

EVEREST bank
Vriance mean SD Variance

Possibility of new entrants Quality services extension

3.93 3.39

1.1 1.05

1.22 1.09

3.31 2.62

1.2 1.4

1.5 1.9

3.39 2.96

1.2 1.3

1.4 1.6

Availability of required resource interest rate

3.61 2.93

1.14 1.52

1.29 2.32

2.9 3.21

1.2 1.4

1.4 1.9

2.96 2.74

1.2 1.6

1.4 2.5

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Analysis of employees satisfaction

statements
mean

NOBIL bank
SD Vriance mean

SCBNL
SD Vriance mean

EVEREST bank
SD Vriance

Financial results marketing and sales activity sources of competitive advantage key factors location and number of branch organization norms and values personnl policies brand name network with banks and investors

1.2683 1.4634 1.225 1.4146 1.2683 1.7073 1.5854 1.3902 1.3171

0.449 0.2012 0.505 0.2549 0.423 0.1788 0.499 0.2488 0.449 0.2012 0.461 0.2122 0.499 0.2488 0.494 0.2439 0.471 0.222

1.276 0.4549 0.2069 1.3043 1.586 0.5012 0.2512 1.6087 1.138 0.3509 0.1232 1.1304 1.517 0.5085 0.2586 1.4783 1.207 0.4123 0.17 1.2174

0.47 0.2213 0.499 0.249

0.344 0.1186 0.511 0.2609 0.422 0.1779 0.487 0.2372 0.422 0.1779 0.507 0.2569 0.507 0.2569

1.759 0.4355 0.1897 1.6522 1.793 0.4123 0.17 1.7826 1.345 0.4837 0.234 1.5652 1.517 0.5085 0.2586 1.4348

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Analysis of nature of competitors

Valid
strong moderate Weak

freq
45 21 27

%
48.4 22.6 29

valid%
48.4 22.6 29

Cumulative percent 48.4 71 100

Total

93

100

100

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Major findings of the study

Current ratio of NABIL bank is in decreasing trends in comparison with

other two.

NABIL bank is poor among competitors regarding average loan,

average investment, average interest payment, and deposits

SWOT analysis revealed that NABIL bank is strong in terms of brand

name and international network expansion, quality service, high bonus, staffers stability, more advance services, well- trained staffers.

NABIL bank has more opportunity than others

The major three competitors (NABIL ,SCBNL, and EBL) have the

similar strategy in terms of the threats, new entrants, new advance services and expansion of large market share.

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Conclusion
Competitor accounting analysis tool is one of the powerful tools

of strategic management accounting.

It is important to identify the competitors moves and

countermoves before appraising the strength and weaknesses. tractable frameworks for competitor identification, environmental scanning and formulating marketing strategies. really a difficult and challenging in banking services

This study will be helpful for banks to develop the set of

The study of competitor identification and accounting analysis is

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Limitations/Suggestions
The study fails to discuss how well the Nepalese banks are

using competitor accounting analysis tools of strategic management to identify their actual competitors. for the improvement in practices.

The articles dont well provide necessary recommendation

Impact of the political and economic environment is

ignored in SWOT analysis and analysis of potential threats. ratio and times interest earned ratio are also important ratios.

To compare the financial position of the competitors, Debt

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Future scope
This study is has provided the foundation to students and

researcher who wish to conduct further research and have understanding in competitor identification and analysis.

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THANK YOU

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