Should Citibank launch the card product? Yes – If Citibank is striving to reach its goal of achieving $100 million in earnings by 1990, introducing a credit card into the Asia-Pacific market would be an effective means of achieving this goal. The case for launching the card product can be made based on a few reasons. First, as can be seen in the information presented in Exhibit 4, many of the countries Citibank is considering launching in have fairly high projected growth rates (with some as high as 8 and 9 percent). Another reason that promotes the case for Citibank’s card launch is the fact that there is a fairly low penetration of credit cards in the existing markets, as can be seen in the data presented in exhibit 8 of the case. This is …show more content…
This estimate is based on the acquisition and servicing costs data provided in and surrounding Table A in the case, as well as the Net Revenue Impact of Citibank on the Hong Kong market in Table B of the case. If we look at the attainability of this estimate on a country by country basis, the data certainly supports being able to launch a card product. The amount of each market that has yet to be reached was calculated based on the ratio of the number of card holders to the relevant market size, and each country’s yet-to-be-reached market (i.e. untapped market) shows that Citibank could fairly easily hit its estimated break-even point if it were to enter these
3. What are the consequences of Capital One’s IT strategy for expansion into different segments of the credit card industry, and into other industry’s?
The Royal Bank of Canada experienced some fundamental managerial errors in May 2003. It was reported as a major “glitch” that had been caused by wrong configuration during the installation process. A simple problem had severely affected the lives of millions of people. In this essay I will discuss the security and control problems such as the simultaneous upgrade of both the main and back-up systems. This will lead into the strategies management could have used to prevent these problems happening in the first place and what they can do differently in future. I will also explain how management neglected the public relations side of the issue which had customers questioning the reliability and stability of Royal Bank of Canada ultimately
The liberalization of the money related divisions in Asia has brought about the fast spread of charge card organizations and monetary organizations giving different sorts of purchaser credit. The charge card market in general world has extended radically that the guarantors of outside nations has presented cellular telephone Visas for the comfort of their customers.(Amin, 2008) This, combined with the passage of remote banks, has enormously expanded the quantity of credit cards accessible, and consequently such spending in Pakistan. Despite the fact that charge card was presented in Pakistan decades prior when Habib Bank, the biggest bank in Pakistan, dispatched its gold card, however individuals had scarcely think about this card in view of its extremely restricted issuance. Several years back, Master card was introduced by ABL (Allied Bank of Pakistan), but that also was not get good attention. In year 1994, VISA Card is introduced by Citibank, that give a better turning point to plastic money industry in Pakistan. The working of Citibank no doubt was amazing that open doors for new offerings for the people of our country as well as for financial industry
1. What is their business strategy to grow profitably and compete over the long term?
Evaluate RBC strategy and organizational structure. Is RBC well equipped to compete with niche operators such as internet-only banks with focused product offerings?
• What is a case interview? The Case Interview • What specific skills does it assess? • How to prepare for a case interview? • An interactive example.
Strong intro: Advocate is addressing necessary points during into- appreciation, disclosure, intro, name, concern. (adjusting tone appropriately)
Information-based strategy (IBS) allowed Capital One to achieved competitive advantages in credit card industry. And it is mainly relied on information and data gathered. The following discussed the consequences for expansion into different segments of the credit card industry.
Six years after the successful implementation of Alpen Bank in Romania in the years 2000, Gregory Carle the country manager is wondering whether Alpen Bank should consider launching a credit card in the market. In order for the launch to be profitable several points have to be clarified such as who would the company target, what would be the positioning of this new card and how should it be marketed.
In the late 19th century, there was a period where the U.S. railroad industry experienced rapid overexpansion and heated competition. JP Morgan was very involved in reorganizing and helping several financially troubled railroads. Through this process, he gained control of portions of these railroads’ stock and eventually controlled around one-sixth of America’s rail lines.
For the threat of new entrants, the financial market in United States is fiercely competitive. The threat of new entrants is not serious for some companies that have been famous for a long time. Capita One continued to seek technological innovation and adopt the diversification strategy, they stick to running business including credit cards, auto loans, family loans, savings, personal credit, insurance and so on. According to the data on MBAlib website, by the end of 2017, the credit card loan balance of Capital One was 97 billion 100 million dollars, which is the third place in the U.S credit card market. The companies in the first and second is 141 billion 800 million of Morgan and 133 billion 300 million of Citigroup. The revenue of credit card accounts for 62.8% of the total revenue.
Problem Statement: Alpen, a Swiss bank, which was positioned in high earner segment, is contemplating international expansion for its credit card business in Romania market. Carle, Alpen’s country manager, was trying to pursue this plan if he could prove by analysis that within two years it will be able to generate €5 million of annual profit to the Consumer Bank segment. The Romanian consumer lacked experience in using credit cards which made it difficult for the bank to determine credit card limits and set interest rates which would attract
Citibank should launch the card product in Asia for several reasons. Firstly, Citibank can ride on the rapid economic development in the region via credit card products. Secondly, it is also an excellent way to overcome distribution limitations imposed on foreign banks in the region. Thirdly, it allows Citibank to expand its customer base from the upper income segment to include the rapidly growing middle-income households, which is consistent with its global growth strategy and mission in Asia Pacific. Fourthly, by introducing credit cards, Citibank will be able to cross-sell other product lines such as Auto Loans and Ready Credit
In 1996, Citibank was an emergent banking institution attempting to increase its market share in the competitive Los Angeles area. In order to do so, the bank’s strategy was to focus slightly less on their financial growth, and much more on providing “a high level of service to its customers”. Management viewed this paradigm shift as “critical to the long term success of the franchise”.
The American Express company also known as Amex, it is an American multinational corporation. The company was eventually started as an express mail business in Buffalo, New York. It was formed as a joint stock corporation through the merger of express companies owned by Henry Wells( Wells Company), William G. Fargo (Livingston, Fargo and company)and John Warren Butterfield (Wells, Butterfield and company).