Citibank: Launching Credit Card in Asia Pacific

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 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

16. Which of the following international management scholars first argued that countries differ in their ability

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.

The company has recently made moves to build its retail banking business and its credit card business. In 2012, Capital One completed the purchase of ING Direct USA, a deal that added $80 billion in deposits to the company's balance sheet. It then added HSBC's US credit card business. This move added $28 billion worth of credit card assets to the company's portfolio. These acquisitions were substantial in nature - $9 billion for ING and $31.3 billion for HSBC (No author, 2012). They indicate that the primary focus for growth at Capital One is to build on its core businesses. Such expansion of its two largest businesses indicates that Capital One is more interested in focus there than in expanding

Threats: big competitors; loosing money in the process of implementation international strategy; lack of promotion; etc.

Which Countries are involved in this case? Describe the diplomatic relations between those countries? Are there any trade agreements, policies, sanctions, political circumstances, or diplomatic issues which would impact management’s decision to enter the market?

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

“ Our mission is to be a Premier Bank in the Asia- Pacific region, committed to providing Quality Products and Excellent Customer Service.”

Cultural differences between countries have strong effects on individual personality and behavior, as well as on organizational culture (Hofstede 2001). These differences can be a significant barrier for an international business leader. Failure to understand and adapt to these differences may

The Royal Bank of Canada (RBC) moved back to Thailand on June 16,1997, which they offered corporate and correspondent banking services from there office located on wireless road. On July 2, the government reacted to the financial and property collapse of the economy by floating the baht (domestic currency) for the first time in thirteen years. Then the bleeding of the collapse of the market was finally sealed when the International Monetary Fund (IMF) intervened and started a 16.7 billion dollar bailout funding program to help Thailand recover from the financial crisis. This was the largest bailout fund since the Mexican peso crisis in

American Express has plans to establish some more companies in other parts of the world which compares with the recommendations offered for the next three years, since it is recommended that the organization should establish other branches in different areas with an aim of attracting a large market share. The recommendation of advertising also compare with that of American Express since they have a plan to identify online services to attract many customers. American Express also considers partnership with other organizations which will

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”.

Citibank first established business operations in Singapore on 1 July, 1902 and was known as the International Banking Corporation (IBC) (Citibank, 2012). The company now represents the largest banking institution in Singapore with over eight thousand employees. Outside of Singapore, Citibank is the primary leader in banking in the entire Asia Pacific region. Due to the long history of Citi in Singapore and the surrounding region, the company is deeply embedded in Singapore's financial services sector (Citi, 2012). The Singapore location is also one of Citi's international sites that host processing hubs and data centers that support businesses in over forty countries around the world.

THE POLITICAL ENVIRONMENT: The critical concern Political environment has a very important impact on every business operation no matter what its size, its area of operation. Whether the company is domestic, national, international, large or small political factors of the country it is located in will have an impact on it. And the most crucial & unavoidable realities of international business are that both host and home governments are integral partners. Reflected in its policies and attitudes toward business are a governments idea of how best to promote the national interest, considering its own resources and political philosophy. A government control's and restricts a company's