Mobile banking was launched in 2007 and within three years Bank of America had 4 million active customers using this service. Work team is defined as a team that generates positive synergy through coordinated effort. These five forces includes three forces from horizontal competition and two forces from vertical competition. However, it considers whether it should also target middle class customers for credit card launching. Words: 344 - Pages: 2. Alpen Bank should position itself by targeting all customers.
I assumed that it is likely to be true but I still provide some sensitivity analysis. This led to an imbalance in the balance sheet where liabilities initial capital and deposits significantly exceeded assets loans or foreclosed assets at a diminished market value resulting, in many cases, in insolvency. Words: 1122 - Pages: 5. First, determine the relative value of each segment. Mobile banking was launched in 2007 and within three years Bank of America had 4 million active customers using this service.
Consumer spending was cash based and merchant acceptance of card payments was low. Words: 1831 - Pages: 8. NatWest could have also responded swiftly and effectively as rivals such Barclays and Lloyds. Alpen has already established the reputation for excellence in serving affluent clientele. Then, a very careful reading should be done at second time reading of the case. Case Analysis of Bank of America: Mobile Banking Marcus J. Moreover, changing life style and improved literacy rate will help the organization to create a huge customer base within the country.
It is one of the 15 largest banks in the U. We predict that by targeting all customers, we provide ourselves with a larger target market. Alpen Bank is a potential Romania banking organization that is popular for excellent client service. Alpen bank should position its credit card as a high end premium product as its existing customers belong to the affluent class and it would be easier to establish itself in this segment. It would be harder to Alpen Bank to set the interest rates that would attract consumers but protect the company from the default risk. With such reputation and brand awareness among its target audience, Alpen seems to be more likely to make profits with launching its credit card business into Romania market. Words: 1492 - Pages: 6.
Besides, to launch the credit card business in Romania might be risky and do harm to the customer base. Step 9 - Take a Break Once you finished the case study implementation framework. Regarding the positioning strategy, Alpen should emphasize on its current strength since it is much easier and safer for a brand to maintain its current image rather than explore a new one. 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. We have calculated pessimistic expected revenues of using Branch Cross Selling method. Analysis Given the economic conditions and details described in the case launching a credit card presents the bank with an opportunity to take over a larger market share of the credit card business and gain customer equity.
The interest received on them is the discount which is the difference between the price at which they are issued and their redemption value. The inability and inexperience of the customers in managing the credit card have been one of the weaknesses which prohibited the entry of the credit card business concept into the country previously. Social: The people of Romania were not that much aware about the credit card services. Alpen has already established the reputation for excellence in serving affluent clientele. Whereas, the opportunities and threats are generally related from external environment of organization. There are many factors to take into consideration and if it is decided to be launched, Carle also needs to decide how it should be positioned in the market.
So it looks like only 46. Another method used to evaluate the alternatives are the list of pros and cons of each alternative and one who has more pros than cons and can be workable under organizational constraints. The paper includes problem identification, problem analysis, discussion of alternatives, and recommendations. Air conditioned environment Good Lighting Quiet and Comfortable Air conditioned environment Good Lighting Quiet and Comfortable Management put more emphasis on production than on employee satisfaction Management put more emphasis on production than on employee satisfaction Employees felt other operating units received better pay raises Employees felt other operating units received better pay raises Wage gap did not reflect skill level Wage gap did not reflect skill level Although close with one another there was little loyalty to the bank Although close with one another there was little loyalty to the bank Low Turnover Low Absenteeism Low Turnover Low Absenteeism Poor working environment. For example you can recommend a low cost strategy but the company core competency is design differentiation. Business environments are often complex and require holistic solutions. In an effort to weather the storm BoA began to incorporate mobile banking.
Total disposable income in Romania had increased due to rapid economic growth and rising incomes in the country. If we then look further down we see Exibit 5 witch lists the Annual income in Romania and we see that 18. After having a clear idea of what is defined in the case, we deliver it to the reader. Formulation of an effective marketing strategy is inevitable for the introduction of the credit card in such an environment. Revenues generated by annual fees and interchange are sustainable, for affluent customers in emerging market are more sticker than in developed market. Alpen bank has mainly catered to affluent Romanians and has established itself as the bank for the wealthy.