Case Analysis -- Citibank

CASE STUDY 2

CITYBANK: LAUNCHING THE CREDIT CARD IN ASIA PACIFIC (A)

1. ABSTRACT

As initially a consumer banker in Asia region, Citibank has been a very successful revenue plunderer in consumer banking products and services. To further boost up future earning, Rana Talwar, the head of Citibank’s Asia Pacific Consumer Bank, has decided to bring in their very new product, i.e. credit cards. Should the cards being introduced and sold in Asia Pacific? Does the market, or to be known as countries, been suitable enough for Citibank’s credit cards business? If it does, how can Talwar do to penetrate and to expand their influence in the very diverse Asia Pacific region? Analysis has been done.

2. ISSUES IN THIS CASE

Several important issues should be highlighted and supported with analysis as an aid for Talwar’s decision making. Below are the issues rose.

1. Talwar’s thinking of launching Citibank’s Credit Cards in Asia Pacific region brings future revenues. The capability of Citibank decides everything. What is the bank’s strength? Are Citibank invulnerable to market and strategy failure?

2. What are the needs and demands of consumers in Asia Pacific region? Can the needs and demands being delivered successfully?

3. The role of credit cards in Asia Pacific region? Does Citibank able to reach its objectives?

4. What are the market characteristics for credit cards in Asia Pacific region, in term of competition, distribution channels, economic situation, and legitimate enforcement?

5. Provide some suggestions of possible markets to enter. What is the best mode of entry for the suggested markets?

3. ANALYSIS ON CASE

1. SWOT ANALYSIS

3.1.1 Citibank’s internal SWOT analysis highlighted the capabilities of Citibank in conducting new credit cards business. The internal analysis is displayed below.

STRENGTH

Own characteristic services from Citibank core business which differs from others local competitors are...