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Alpen Bank

C/B/2625. Alpen bank: launching the credit card in Romania. A Harvard Business school case study

WORDS:: 2050
DATE:: 2010
PRICE:: 29.99 GBP

The paper analyses the Harvard Business School case study by V. Kasturi Rangan and Sunru Yong entitled, “Alpen bank: launching the credit card in Romania”. The research investigates if the decision to launch a credit card in the country is worthwhile, and if it would generate an additional profit of €5 million per annum in order to prove the feasibility of entry-decision. The PEST analysis is carried through cost, breakeven point, and profit considerations. As a result, the bank targets “affluent” and “most affluent” customers, through extensive brand-building efforts and top-of-the-range service standards. This will allow the bank to charge “joining fees” and “annual fees” that other banks are considering to waive off. This will not only help the bank in building financial strength as against its competitors, but will also help in surpassing “break-even point” in a lesser time.

KEYWORDS: PEST, Break-even point analysis, cost and profit analysis, Porter’s generic strategy, porter’s five forces, 5 forces, Harvard, case study, brand building, banking industry, credit card,