Commonwealth Bank of Australia and Emerging Markets- MyAssignmenthelp

Question: Discuss about theCommonwealth Bank of Australia and Emerging Markets. Answer: Emerging Market For The Commonwealth Bank Of Australia Could Expand Its Business Into. Emerging markets are the developing countries or the emerging economies. They are countries that are experiencing a rapid industrialization, modernization, and a fast economic growth hence adopting a free market. As compared to the developed countries like Germany, Japan, Italy and the United States of America, the emerging markets have a lower-than-average per capita income (Cavusgil, Riesenberger, Rammal Rose, 2015). In the recent years, despite the fact that these countries represent a low-cost manufacturing and a high-risk business environment, they have started to pose a competitive challenge to the so-called advanced economies due to the evolving of their infrastructures and legal systems. Some of the developing countries or the emerging markets include the following; Brazil, Egypt, Chile, Morocco, Kenya, China, Mexico, South Korea, Tanzania, Ukraine, Uganda, and Nigeria. The significance of the emerging markets is that they oblige growth in the worldwide economy. The Commonwealth Bank of Australia should expand its business into, for instance, Kenya as an emerging market. For the recent years, mobile banking in Kenya is on a rising note. According to the Kenya National Bureau of Statistics, the use of mobile financial services is more popular amongst the Kenyans which increased in the year 2016 with 18% of the population use MShwari and KCB M-Pesa the mobile banking services in Kenya. The use of the mobile banking service saw an increase of 10% since the year 2013 (Webcache.googleusercontent.com, 2017). For this reason, the Commonwealth Bank of Australia should expand its business of mobile banking into Kenya. Commonwealth Bank of Australia will use the acquisition of a financial technology TYME to expand its mobile banking services in Kenya since the propagation of cell phones is posing a big challenge to the method of traditional banking in which Kenya is the world-leading mobile-money system. A Strategy, The Commonwealth Bank Of Australia, Should Use To Enter Into The Mobile Banking System In Kenya. In trying to venture into the emerging markets, the Commonwealth Bank of Australia should come up with creative strategies to enable them to achieve their goals and objectives in the developing countries. By entering the mobile banking system in Kenya, the CBA should partner with the available and qualified companies that offer the mobile banking services. The primary mobile banking service providers in Kenya are Safaricom in which their service is branded as M-Pesa and Airtel in which their service is branded as Airtel Money. In this case, CBA with its acquisition of TYME should seek an alliance with these two companies to access the local market knowledge and establish their digital banking ecosystems to serve their clients in Kenya. The partnership strategy employed by the Commonwealth Bank of Australia will ensure that there is an opportunity to improve the bank's customer base and give them an opportunity to acquire more competitive advantages. Although there are risks and challenges in the emerging markets that affect the international market, the CBA bank will make sure that they utilize this strategy correctly to identify the strengths and weaknesses of the mobile banking system in Kenya. The partnership strategy will be a success if only there is clear communication between the two alliances, collaboration, commitment and trust amongst them. Although venturing into the emerging markets is challenging, the Commonwealth Bank should use this strategy to fill the gaps in the mobile banking system in Kenya. References Cavusgil, S. Tamer, Knight, G, Riesenberger, J.R.,Rammal, H. and Rose, E. 2015. International Business: the New Realities, 2ND Edn, Pearson Australia, Melbourne Vic. Nicoletti, B. (2014). Mobile banking: evolution or revolution? https://public.eblib.com/choice/publicfullrecord.aspx?p=1765630. Summers, J. and Smith, B. 2014, Communications Skills Handbook, 4th edition, John Wiley Sons Australia, Milton. Webcache.googleusercontent.com. (2017). 2016 FinAccess. [online] Available at: https://webcache.googleusercontent.com/search?q=cache:5GwdzrXbAJkJ:www.knbs.or.ke/index.php%3Foption%3Dcom_phocadownload%26view%3Dcategory%26download%3D839:finaccess-2016-survey-report%26id%3D121:rare-copies%26Itemid%3D599+cd=1hl=enct=clnkclient=firefox-b-ab [Accessed 26 May 2017].