Case ID: 4559
Solution ID: 18946
Words: 1465
Price $ 45

Alpen Bank Launching the Credit Card in Romania Brief Case

Case Solution

Alpen Bank is planning to launch credit cards to target market of Romania, but before they move ahead with this plan, they need to analyze their steps to get hold of better results. This can be done through different methods such as determining the breakeven point that they would face and the customers that they can attract resultantly. Another way is to perform a cost benefit analysis and be able to find out the mindset of people and their prospects regarding the banking sector of Romania. It is also crucial to determine whether the prospects for Alpen Bank has improved over time or not and the different factors which had increased or deteriorated their chances of penetrating this market segment.

Excel Calculations

Questions Covered

1. How should alpen position its card if it intends to launch it?

2. What are the economics of the credit card business in Romania? What is the cost of acquisition of a new customer? How many customers will be needed to breakeven?

3. Is breakeven achievable? In what time period? 

4. Do a cost benefit analysis of the launch. What information does this provide you?

5. What other customer insights can you infer from the case study?

6. Should Alpen Bank launch the credit card? Why or Why not? How does  the credit card business compare to the core banking business?

7. If the bank launches the credit card, who should they target first? What should their positioning strategy be?