As such, the plan has been broken down to be analyzed upon these 4 contingent areas as follows: Strengths With respect to overall strength of the business plan, the target market is a perfect segment for such an offering as the target demographic and need both exist in ample supply based upon the demographic information provided in the analysis. Technological: Technology is a necessary aspect for the growth of this industry. Students are required to complete a quantitative assignment as part of case analysis. Under Yarnold's leadership the organization went through two strategic plans 2012—2016 and 2016—2020 and brought about many changes. He must decide whether to launch a credit card business in Romania, how to position the credit card, and how to acquire new customers most effectively.
Other than this the affluent class is looking for luxury and middle class is also the potential customer for credit card. Lack of awareness and low customer base is the significant weakness of the organization. Any firm who has valuable and rare resources, and these resources are costly to imitate, have achieved their competitive advantage. In addition, it also identifies the weaknesses of the organization that will help to be eliminated and manage the threats that would catch the attention of the management. It gives a comprehensive overview and an analytical insight into human resource management at Barclays bank plc. If Carle decides to offer the credit card program he will need to choose how to market and who to market the credit card to.
It would be harder to Alpen Bank to set the interest rates that would attract consumers but protect the company from the default risk. Then what should Alpen do? In fact, positive interactions on social media can lead to your audience base being converted from Just potential customers to potential brand evangelists. At the end of the 20th century the bank stood as the second largest bank in the American market with close to 4500 branches operating in 21 states. In an effort to weather the storm BoA began to incorporate mobile banking. Carle faces several important decisions before he can present his plan to the head of International Consumer Businesses.
The economy of Romania has able to overcome some effects of recession. However, imitation is done in two ways. Gregory Purpose: The purpose of this memo is to report my observations after careful analysis of economic opportunity of credit card business for Alpen Bank in Romania Recommendation: After thoughtful research, I would recommend you that starting a credit card business for affluent and most affluent will be more profitable. The reasons that resource imitation is costly are historical conditions, casual ambiguity and social complexity. The high performance of Commercial Bank of Ceylon Limited is a reflection of the qualities and attributes that has been accepted by people advocating good management practices in the corporate sector. The main team issues that I note in the case of restructure at Bunga Raya Bank is about lack of work team. Through this table we calculated the cost of acquiring customers.
The support of several political parties and government can increase the core competency of the organization. Environmental: The service sector has able to hold high growth rate comparing to the. Strength and weaknesses of the systems 5. Summary of the Case: Alpen bank needs to launch credit card in Romania which is a matter driven by market dynamics, customer demographics, usage behavior and changing macroeconomic conditions. Mobile banking may be the single biggest innovation the global banking industry has seen.
Secondly, after identifying problems in the company, identify the most concerned and important problem that needed to be focused. However, Romania is experiencing a period of economic growth after joining the European Union and Carle believes it is time to reconsider the opportunity despite continued skepticism within the company. And the buyer power is low if there are lesser options of alternatives and switching. Focusing on affluent class had additional 4 positive aspects: 1. The organization boasts an extensive domination of over-achievers as its major composition of high-level management.
I found the total number of middle, affluent and most affluent Romanian citizens as well as the total potential revenue of each market segment based on these numbers. 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. These tactics allow you to build customer trust and loyalty, and allows you to build a rapport with potential customers by not shoving pushy sales pitches on them when they are interacting with you. . The main reason for the merger was that they feared the competition that was coming and saw.
As the middle class cannot be reached by Direct Sales and Branch Cross-Selling, there is no point about differentiating between whether to reach the three segments or two; only the top two segments can be reached. Thus to position the credit card, Alpen needs to divide its market in two segments i. Diagnosis of Issues: The core problem is whether to launch credit card or not. The bank has currently established a premium image by targeting the affluent class. Political: The organization has tried to enter in the European Union market to increase its international client base.