The country Alpen bank analysis a semi-presidential republic having a significant aspect of democracy characterized by regular elections. Currently, sophisticated terror gangs waylay some of the money being transported while smaller criminals engage in petty crime.
First, the average consumer in Romania still uses cash for most of their payments. While most companies that offer credit cared services in Romania chose to waive these charges in the hope that they would attract customers, their approach directly means that they would have to provide substandard services.
Their foreign relation with the rest of the countries in the world is also quite flexible. However, there were also several drawbacks. This open approach towards politics in the domestic and international arena has allowed Romania to maintain a peaceful and working system that is highly advantageous for organizations in the finance sector such as Alpen Bank.
According to the analysis team, this group held the most potential for credit card usage.
Currently, for the Romanian venture to be successful, Alpen Bank has to achieve and surpass their break-even point by reaching out to the middle and lower class consumers Ulst Lastly, because the consumers in Alpen bank analysis had limited or no knowledge on how to maximize card transactions and manage their credit accounts, it would be an uphill task to try and simultaneously educate the consumers and sell them the idea of switching to paperless payment methods such as credit cards.
Technological Opportunities The banking sector in Romania holds numerous opportunities for the growth of a credit card business. While the analysis team later on stated that the economic status of the country had improved making it clear for Alpen to invest, there was still a threat that would make the whole project a failure.
However, the most persuading aspect that offers concrete evidence of the opportunity to invest in credit card use in Romania are the records from recent financial transactions in Bucharest and other urban areas.
While the bank had done their own research and generated reports that showed the massive profits that could be amassed from the venture, they still required a SWOT analysis to establish their opportunities, strengths, threats and weaknesses.
This market segment will attract deposits that in turn can be used to loan out to younger generations that are credit-driven.
Alpen Bank is a large institution having several branches and subsidiaries throughout Europe and America.
The judicial system is also very independent and effective. Most of these individuals are middle and low-income individuals who are not the main target for Alpen.
Within Romania, there was an opportunity to invest in the future working class by introducing the credit card business. From Marginalization to Membership. The introduction of the credit card in Romania will be readily accepted as a solution to the need of increasing the security when handling money in the country.
The bank also operates in the western area of Austria where it has emerged as the leading bank in handling investments concerning securities. In a point similar to the previous one, Alpen Bank also has high operating costs that can be considered a weakness in its operations.
The other reason why this group is the best target for selling the credit card proposal is that they are still young and have many years to engage in economic activities.
Lastly, Romania is not part of the Euro Zone and consequently, most of their income is still paid out as leu. Romania has greatly contributed in the efforts to end the conflicts in Kosovo and Afghanistan with the help of the United States. From the brief history and description, it is evident that the magnitude and scope of Alpen Bank can allow it to establish a credit card department in Romania and enjoy economies of scale that come with investing at such high levels Ulst Similarly, most merchants in the country also rejected any credit cards.
Threats Political Threats The political atmosphere in Romania is a fairly stable and conducive for the establishment of a tertiary service such as a credit card business.
The consumers also expressed an interest in luxury items. The high rate of unemployment has resulted in increased criminal activity and jobless people turn to crime in order to make a living Ulst Milton Park, Abingdon, Oxon: There was large market segment that showed potential to grow economically and physically and this would act as the main customers for the Alpen credit card service for many years.
Within Eastern and Central Europe, Romania registered the lowest number of cards per household when compared to other countries such as Croatia, Latvia and Bulgaria. Papadimitriou, Dimitris, and David Phinnemore. Furthermore, the credit card sector is also quite slow among the remaining customers who have not yet taken up accounts with the established banks.Case Analysis for Alpen Bank.
Case Analysis: Alpen Bank The main issue that Alpen bank is facing is whether or not they should launch the credit card business in the Romania market and which group of target audience they should select while applying the launching strategy.
Moreover, specifically to Carle, he needs to come up with a program.
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Get the knowledge you need in order to pass your classes and more. Only at mint-body.com". Case Analysis: Alpen Bank The main issue that Alpen bank is facing is whether or not they should launch the credit card business in the Romania market and which group of target audience they should select while applying the launching strategy.
Moreover, specifically to Carle, he needs to come up. The first part of the case study deals with the SWOT Analysis of the Alpen Bank. SWOT Analysis is an important element for strategic planning.
SWOT Analysis. Situation Analysis In this part, Alpen Bank’s internal strengths and weakness need to be considered to decide whether to launch the credit card business. We can use the SWOT analysis to state Alpen’s situation.
Which are stated as following. Strengths. Case Analysis Alpen Bank: Launching the Credit Card in Romania Case Overview: In this case Alpen bank’s country manager Carle has to make a crucial decision whether or not they should go for the credit card business in Romania.Download