Total customers of 99,610 after year 2 would assume a 68. This analysis is very important to the managers as it allows them to focus on key strategic issues based on the notion that an effective strategy fully utilises the strengths and opportunities of a business and strives to minimise the weaknesses and threats. According to Exhibit 5, presented in the case, the middle class. Although in the 2000-2005 the numbers of card users increased 35% growth ,and there was a development of infrasturucture the level of credit card usage remained among other Easter European countries 6. There are potential quality control problems with so many partnerships.
Opportunities The market for new electronic and software products is still growing, with new products arriving all the time. I believe Alpen should only target the Affluent customers and not include the middle class in its credit card program. This strategy helps the company to make any strategy that would differentiate the company from competitors, so that the organization can compete successfully in the industry. It also provides starting ideas as fundamentals often provide insight into some of the aspects that may not be covered in the business case study itself. The decision that is being taken should be justified and viable for solving the problems. Begin slowly - underline the details and sketch out the business case study description map.
In the conclusion, recommendations are given on what BoA can do to keep a stable position in the future, as mobile banking will have a huge impact on the banking industry. Formulation of an effective marketing strategy is inevitable for the introduction of the credit card in such an environment. Based on the attitudes of customers in otheremerging economies it can be said that customers in middle-income class have alower actual utilization rate when compared with affluent class. Also, this segment's card utilization is lower compared to affluent segment. It is recommended to read guidelines before and after reading the case to understand what is asked and how the questions are to be answered. As the middle class cannot be reached by Direct Sales and. Thus, these tools can provide a flexible space for Alpen to move on to other potential strategies in the long-term.
They are less price sensitive andmore conscious of their image so positioning the card on high end would be beneficial for the bank. In 2006, total financial cards grew by 35% compare to prior year. The main reason for the merger was that they feared the competition that was coming and saw. This credit card facility will encourage the people of modern society. One of main problems was that the vast majority of cards in circulation were debit cards transactors. This shows that if Alpen positions its card as a high end product, it will gain a share of market which would stick to its.
About Berkeley Research Case Solutions: Berkeley Research has offered authoritative case solutions to Harvard Business School case studies since 1984. However, it considers whether it should also target middle class customers for credit card launching. It is the only work experience she has but the Bank believed that she is very qualified to be the head of their Credit Analysis Department because of her educational background. Moreover, direct sales and branch cross-selling will work more efficiently since they have much higher effective hit rate than the other options regardless the target audience choices. In its mission statement, BoA has identified its responsibilities towards all its stakeholders which include the shareholders, the. Thus, in order to successfully launch the credit card business into Romania, Alpen bank needs to pick its target audience which is composed of affluent customers only. Is these conditions are not met, company may lead to competitive disadvantage.
Words: 344 - Pages: 2. This shows that if Alpenpositions its card as a high end product, it will gain a share of market whichwould stick to its card. Affluent segment consists of career oriented professionals and they are not very price sensitive. The solution determines the profit potential of the various segment marketing options and determines time to break-even and achievement of the goal of adding Euro 5 million to profits within two years. The bank has a strong presence in the Middle East which increases its reliability and continues to encourage its growth year by year.
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. Research attributes the profits and durability of the bank to its robust culture. Words: 540 - Pages: 3. The organization boasts an extensive domination of over-achievers as its major composition of high-level management. Situation Analysis Context: After a period of recession, the economy in Romania is on a rising trend. Broadly the objectives of Grameen Bank are as follows. Alpen Bank Case Study: Gregory Carle Decision Essay Sample Gregory Carle, the Romanian country manager for Alpen Bank, must decide whether or not the bank should launch a credit card program in Romania.
All the calculations in the charts were based on revenue potential and acquisition costs. Then, a very careful reading should be done at second time reading of the case. Fluent clients are more like to pay their credits in time that in fact would help the bank keep the its credit card utilization rate low. Best alternative should be selected must be the best when evaluating it on the decision criteria. However, such a growth was not enough compared with other countries of the region. Transactions were based on cash, but after 2000, by the entry into European Union, the Romanian economy started to grow and disposable income increased dramatically. Yong on a Romania-based Alpen Bank.