Alpen Bank Case Analysis

Memorandum Subject: Alpen Bank Case Analysis The last-place objective of this abbreviation is help Gregory Carle determine if he should barrack that Alpen Bank dive a credit card in the Romania market. In an movement to ascertain this objective, I leave do- nonhing analyze totally the selective information supplied in the effort which is necessary for Mr. Carle to make a sizable marketing decision. In an rank to accurately calculate the data, approximately assumptions were made. These included: €3000/repp meant that the total bell was €3000 a hardened cost and not cost per unit. The conversion rate use was 85% and was imbed from the case. There is the same numbers of raw(a) customers each year. There were no exit customers. Using the data supplied and these assumptions, customer revenue, acquisition cost and the breakeven analysis was done. I stony-broke the analysis into two sections. branch compiling data for all customers and then leading c ompletely if the affluent customers. Based on the calculation for all customers, mysterious down the 2 year benchmark not only would the launch of the credit card top the to the advancedest degree life-sustaining criteria; generating a boodle of €5milion, but they would do close retroflex this put by generating €9,345,195.37 and need only 151,074 customers in effectuateing to breakeven.

Within year 1, the bank would see net profit of €16, 8418 which should be good news for senior management. If the bank chooses to target only the affluent customers, they would create a €7,938,198 profit inwardly 2 years; however, they would be at a €204,! 916 check in the first year. In order to breakeven in this market, they mustiness attract 60,570 customers. Based on the aforementioned analysis, I would pass that Alpen Bank does launch the new credit card in the Romania market. I would also suggest that the new card be opened to all and not just to the affluent customers. This is ground not the fact that not only would they make high profits expanding to all customers, but the market of the affluent customers impart run the bank...If you want to get a full essay, order it on our website: OrderCustomPaper.com

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