Citibank: Launching the Credit Card in Asia Pacific
45-720
Marketing Management
Marc Brands
Masatoshi Kaneko
Oscar Lehmann
Shu Yagi
Juan Zatarain
January 23, 2003
Executive Summary
We recommend in the first phase to expand the credit card business into India, the Philippines, Taiwan and Thailand. These are fairly stable untapped markets. Our strategy is to focus generally on the high status groups in these markets. The cards should be issued in the local currency but include an option for Taiwan customers to use US dollars. In the next phase enter into Malaysia, Australia and Singapore. Again focus on the high status groups in these markets. We don’t recommend expanding into Indonesia due to the
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| |Already had experience with loss on proprietary credit card business |
| |Poor Consumer payment on installment debt |
| |Already saturated markets (Australia, Singapore and Hong Kong) |
Many of these threats have stopped competitors from taking over this market. Even though there are many threats, the opportunity to be the major player in this market exists and returns can be large due to the risk-return payoff. In addition, the credit card business can leverage the current position of Citibank by cross-selling their product and make Citibank a household name.
Customer Acquisition
The cost to acquire a customer depends on the direct marketing program.
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Since we are operating in the international market direct
If the percent of sedans that gives more than 44 mpg is 0%, z-score is 4.33.
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As a member of management Clive Jenkins is responsible for boosting employee morale to ensure that company goals are met
b. What medium would you use to reach each of these parties and what would your relative resource allocation be to each?
Given our analysis of the motion picture industry, we recommend that Arundel carefully select the major film studios from which they intend to purchase sequel rights. The net present value of hypothetical sequels taken from the available previous years shows not only that the industry is highly volatile, but also that certain production studios are more volatile than others in terms of their recent performance. In addition, some studios are consistently less profitable than others. (See "NPV for Each Production Company" chart in appendix) Since the success of film studios are relatively stable in the short term (see "Rental Shares of Major Film Distributors" table and graph) Because of this stability, it is possible for Arundel to approach more profitable studios with their offer to purchase sequel rights. Out of all the major film studios, only MCA-Universal, Warner Bros., and The Walt Disney Company generate a positive net present value on a per-film basis. However, according to casual inquiries, it is unlikely that any movie studio would enter negotiations with Arundel on a per film price that is less than 1 million. Instead, the film studios seem to
b.What are the amounts and timing of the acquisition investment’s free cash flow from 2013 through 2022?
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Citibank developed two different strategies for each market segments, some of the strategies for MNCs are secure platforms to access services, local and global which can offer fast and worldwide capabilities. Also provide fraud and identity theft protection, showing the advantages of online real time banking
- We believe that breaking out the data by studio is an advantage because it provides direction.
Banc One has a problem with the alignment of two of its important strategies: (1) rapidly acquiring profitable banks and (2) sustaining high returns while mitigating interest rate risk. Banc One has been very successful in acquiring banks, and much of this is done through the sale/transfer of Banc One’s stock. This strategy relies heavily on Banc One’s ability to maintain a high stock price. The second strategy – high returns with mitigated interest rate risk - relies heavily on the use of interest rate swaps. This use of interest rate swaps has become concerning to investors - due to its complicated nature,
We are providing below the assumptions and other calculations we used while computing the WACC and the cash flows.
JPMorgan Chase is one of the oldest financial services company dating back over 200 years. It has $2 trillion in assets and operations in more than 60 countries. JPMC’s corporate strategy is it provides services and products in major capital markets. JPMorgan Chase, well known nationally and globally, is leading in investment banking, financial services for consumers, small business and commercial banking, financial transaction processing, asset management, and private equity.
Well-organized structure. There is clear defined stages and the fixed timetable to follow during the dispute settlement procedure. This dispute settlement system indeed become more effective than that of GATT 1947 (Food Fight n.d.), which is capable of dealing with complicated cases.
Finally, in order to complete a more accurate comparison between the two projects, we utilized the EANPV as the deciding factor. Under current accepted financial practice, NPV is generally considered the most accurate method of predicting the performance of a potential project. The duration of the projects is different, one lasts four years and one lasts six years. To account for the variation in time frames for the projects and to further refine our selection we calculated the EANPV to compare performance on a yearly basis.
Black & Decker Corporation is a corporation based in Towson, Maryland, United States, that designs and imports power tools and accessories, hardware and home improvement products, and technology based fastening systems.