Citibank in Asia - Launching the Credit Card in Asia Pacific

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Finally, Citibank should also enter most of Asian Pacific other countries like Thailand, Taiwan, Malaysia, Philippines, Singapore, etc. Why? Because, as mentioned in question 1, these economies are rapidly developing along with their financial infrastructure, which represents a very important marketplace for Citibank in the near future. Most of them have strong economic performance and consumer affluence and spending is rising.

- How should Rana Talwar convince his country managers and headquarters to accept the card product? What organizational mechanisms does he have in his control?

First, Rana should collect data in order to have arguments and facts that support the decision of entering those markets with the card product. For example, a study of environmental conditions (economic, political, technological, etc.) in the present and what is expected in the future, a financial assessment comparing the best and worst case scenario, an evaluation of pros and cons of launching in each country and possible risk management plans, etc. Then, he should design a clear plan where he state which countries are ready to launch the product (according to the previous assessment) and which are not. This would give managers the confidence that Rana is doing things strategically. About the organizational mechanisms, he is the head of Citibank’s Asia Pacific Consumer Bank, so he has the authority to make decision about new products, but he needs to pay close attention to what this decision could mean for the growth in revenues and market.

- If you chose not to introduce the card, what would you do to achieve the $100 million earnings target by 1990? What kind of branch banking products should the bank offer?

If Citibank does not launch their credit card product, they should focus improving their core products that are already available in the region.

- Increase the number of branches available to the customers in countries where they can expand

- Try increasing their market penetration for Citi-One accounts

- Develop strategies to increase market penetration of Mortgages and Auto Loans. For example, develop further partnerships with car dealers.

- Making Ready Credit available for more people

- Attract more people to their Citi Gold service, since a big part of the market gives more importance to prestige and to ease of doing business

- Improve their service through CitiPhone

- Develop the International Personal Banking (IPB) business in more markets, answering to their needs

Basically, they should focus in market penetration of their current services in Asia Pacific region, but also focus in market development of services that are being offered in other countries (bring them to the Asian Pacific region).