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Alpen Bank

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Submitted By camii354
Words 1301
Pages 6
Problem Statement
Six years after the successful implementation of Alpen Bank in Romania in the years 2000, Gregory Carle the country manager is wondering whether Alpen Bank should consider launching a credit card in the market. In order for the launch to be profitable several points have to be clarified such as who would the company target, what would be the positioning of this new card and how should it be marketed.
Situation Analysis
Context: After a period of recession, the economy in Romania is on a rising trend. The total disposable income of the population has increased and the middle- and upper- middle class is developing as their income is increasing.
Consumers: A consumer survey indicates a clear change in the Romanian’s behavior; they are getting more interested in luxury goods and in products coming from the EU. Also, a strong increase of total cards on the market of 35% indicated that consumers are getting more likely to use cards rather than cash. This trend is supported by the fast development of the infrastructure required for a payment system. Even though for now cards are mostly debit ones and used to withdraw cash, as the country economy is growing and the behavior of consumers changing it is very likely that credit cards have their place on the Romanian market. Another important data to consider is the income distribution in Romania which is very unequal as only 10% of the population holds 24% of the wealth.
Competitors: The competitors of Alpen bank have already launched the service several years ago.
Alternatives
After reviewing the situation AB is facing, the two alternatives it could decide to go for are:
1. Decide not to launch the credit card
Pros Cons
• The less risky option, not entering the market means no risk of failure
• Only 20% of the 1.7 million cards in circulation in Romania are actually utilized, which is very low and

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