The Decision to Globally Expand Citibank
The decision to open Citibank Credit to Asian Pacific is one that requires much investigation into the cultures, economies, and social statuses in each prospective market. While it is mainstream ideology to use credit for daily purchases in the United States where Citibank is located, many countries frown upon indebtedness to others, including creditors. Although there are risks in offering credit cards to many of these countries, it is recommended that Citibank launch two card options; a Standard Card that caters to the lower-middle class consumers with lower incomes, (that meet minimum requirements) and a Gold Card that will provide increased credit ceilings to the upscale markets.
Phased Introduction to Asian Pacific Markets
In order to realize the best business plan for the Asian Pacific countries, it is suggested that Citibank globalize the credit card markets through a phased approach. This approach will introduce the card to the countries that are estimated to have the least amount of risk associated with their economies, political status, and cultural acceptance of credit usage. The successful practices would propagate through to the future expansions and provide a strong foothold into the markets. Citibank should open the Gold marketplace first, providing a low volume, but high scale product that lower-middle class consumers would strive for and eventually have, in the Standard Card product. Rather than adapt to the antiquated set of regulations and standards of an existing local company, Citibank would benefit by opening its own business centers, where it would be free to adapt to both company and cultural desires.
The strengths of entering the Asian marketplace are the reinforcement of Citibank's ...