Due to the
political unrest, I would be extremely reluctant about market entry. Break-Even
Analysis: $2 mil + $35 mil = 616,667 new credit card customers ƒö$85 - $25 **
(An additional $10 million to $15 million for each additional 250,000 credit
card customers) ƒö=Joining fee and annual fee estimated from American Express
Green (Exhibit 9) Singapore Next to Australia, this market is extremely
prosperous, developed and stable enough to support immediate market entry. It
appears that Singapore is experiencing a political and economic boom. With a
political ranking of ¡§B¡¨, it appears politically stable to entry. A large GNP
($23.8 billion) when compared to its small population (2.7 million), the
population appears to be lucrative. Inflation has a 5-year average of only 0.7%
and a literacy rate of 87% (one the highest in the region). This represents a
population that has an understating about financial basics and could provided
endless potential for credit card customers. In addition, 100% of the credit
cards already in circulation are owned by only 10% of the population, there is a
fantastic potential to exploit the lower 90 of the population. Market entry
should be reactive easy with a formulated financial plan aimed at economical use
and ease for this sector of the population. Break-even Analysis: $2 mil + $35
mil = 435,294 new credit card customers ƒö$110 - $25 ** (An additional $10
million to $15 million for each additional 250,000 credit card customers) ƒö=Joining
fee and annual fee estimated from American Express Green (Exhibit 9) Taiwan I am
impressed by the Political and Economic ranking of ¡§A¡¨. The GDP of $95.8
billion is one of the highest in the region, with an impressive 9.3% 5-year
growth rate. These values reflect a market that is stable and growing.
This
represents a market that is able to support entry of another financial
institution. Similar to Singapore, people who reside in the upper three
categories of annual income own 100% of the existing credit cards. This leaves
the lower income market subject to entry. Couple this with the attractiveness of
the Citibank name, and I believe the entire income arena is attractive for
entry. Break-Even Analysis: $2 mil + $35 mil = 402,299 new credit card customers
ƒö$112 - $25 ** (An additional $10 million to $15 million for each additional
250,000 credit card customers) ƒö=Joining fee and annual fee estimated from
American Express Green (Exhibit 9) Thailand The population numbers reflect a
market that is suitable for entry, in a converse nature as compared to Taiwan
and Singapore. SCitibank Reviewy five percent of the existing credit cards are owned by
people in the lower three categories of annual income. This leaves the upper
three, lucrative levels of income wide open for market penetration.
Additionally, a strong Political ranking of ¡§B¡¨ and 7.2% growth rate reflect a
stable economy. Break-Even Analysis: $2 mil + $35 mil = 462,500 new credit card
customers ƒö$105 - $25 ** (An additional $10 million to $15 million for each
additional 250,000 credit card customers) ƒö=Joining fee and annual fee
estimated from American Express Green (Exhibit 9) Market Entry Strategy I
recommend entering this market. First, I would exploit a commodity not discussed
in this case. Guam. Guam, a U.S. territory, is geographically located in such a
manner that startup, and continuous operations could be directed from the
immediate region.
