A Competitive Analysis of Prime Bank Credit Card with the Cr (page 1)

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Introduction:

 

Prime Bank limited is a fast growing private sector bank and the bank has focused for providing high quality customer service at a very competitive price. PBL efforts are directed at diversification of products and services. Offering customers a wide variety of choices and options have remained cornerstone of their business strategy. Prime Bank limited

In this backdrop, PBL has launched credit card business in collaboration with a global player like Mastercard. Mastercard is one of the top 20 brands in the world. An alliance with these as its principal member is definitely a big advantage from marketing point of view. The policy planners have found a showing growth of card market with the increasing acceptability of plastic money in many outlets; the business has become intensely competitive. More players had entered into the market and some others were preparing for entry into the same. As increasing number of customers were turning to the convenient features of credit card usage, PBL had steeped up marketing efforts to retain and enhance their market.

This report is basically deals with “A Competitive Analysis of Prime Bank Credit Card with the Credit Cards offered by Standard Chartered Bank and National Bank Limited and its contribution towards the company growth”.

 

Overview of the problem:

 

This paper emphasize that all tasks assigned to a marketing research manager, none is more critical that analysis competitors activities, performance and potentially in credit card market in Banking area that effect the projection in the future periods are fundamentals to architectonic a long term strategic plan and designing appropriate marketing strategies.

In a research project is has been identified that the sales growth become negative for the last few months. Through this research proposal I like to identify the factors, which affect large in consumer preference at the time of selecting a particular companies credit card and find out prospective solution to overcome those shortcomings. At the same time in this exercise, it is tried my best to identify the variables that are significantly collateral in competitive advantage and by distinguished cardholders and merchant effect in performance.

 

 

 

 


Objective of the study:

 

The main objective of the study is it explore and examine the underlying issues critical to developing and maintaining long term exchange relationship with the customers of the PBL. More specifically through this study I like to find out the lacking of PBL in terms of its competitive competitors.

 

  1. To identify the competitors of the PBL.
  2. Identify the customer (cardholders) preference that differentiates the services of PBL Card with the competitor in the market.
  3. Identify the merchant preference in credit card transaction.
  4. Identify the share of heart of cardholders in charging credit card.
  5. To identify the share of dollars in credit and changing in total expenses.
  6. Identify the different changes, interest and service fees that give the competitive advantage in credit card market.
  7. The preference of merchant in credit card transaction.
  8. Potentiality of credit card.
  9. Find the variables that act as competitive advantage in credit card market.

 

Research Questions:

To achieve the objectives the following major research questions are identified:

 

  1. What are the factors affect customers at the time of evaluation of the offerings of credit card of different competitors?
  2. Who are the competitors of PBL Credit Card and their performance comparing with Prime Bank Credit Card?
  3. What type of benefits do consumers expect from credit card and what type of difficulties they face at the time of using it?
  4. What type of differentiations exists in the competitive of credit card according to its interest, service charge and fees?

 

 

 

 

 

 

 


Methodology:

 

Once the research objectives are finalized the next logical step to achieve the objectives is to decide the methodology to be followed. In order to achieve the primary objective, quantitative method, in particular case study approach, appear more appropriate in collecting necessary data. Survey method can be use for research purpose through using a structured questionnaire that will be prepared both for cardholders and merchants.

Data Collection: Both the primary and secondary form of information and also requires a depth observation of the phenomenon to be investigated is used to achieve a report which is more meaningful and presentable. But most of the data are primary. The details of these sources are given below:

Primary Sources:

v  Major source of collecting information is questionnaire, which will be prepared both for cardholders as well as for merchant.

v  Another source of information may be discussions with the officers of credit card division through in depth interview of the competitive companies.

v  Practical work exposure in the credit card division may consider another source of information.

Secondary Sources:

v  Brochures of different banks, their annual report, research publications, annual report of BIBM on Bank Management can be the secondary sources for collecting information.

v  Dhaka Commercial bank Management.

v  Dhaka Security and Exchange Commission who store information of all the banks operating in our country.

Layout: All necessary parts of conventional formal report have been followed. The readers are expected to get a different taste from this report.

 

 

 

 

 


Time and Budget Schedule:

 

For the proposed research we need to set a time set and required budget schedule, which may help to determine for further research step:

Time Schedule

                                               Tasks            Time
  1. Preparing a Research Proposal
  2. Completion of Literature review
  3. Developing interview guideline and Negotiation with the cardholders and merchant
  4. Data collection
  5. Data transcription
  6. Data Analysis
  7. Completions report writing, preparing recommendation and submission.
         1 Weeks

         1 Week

         2 Weeks

 

         2 Weeks

         2 Weeks

         2 Weeks

         2 Weeks

Total                              12 Weeks

 

Project Budget

                               Subjects            Costs
  1. Collection of literature
  2. Salary of the field investigators
  3. Tape Recorder, Telephone Charge and stationary
  4. Data Collection
  5. Data Transcription
  6. Printing and other costs
           Tk. 2,000.00

           Tk. 10.000.00

           Tk. 1,000.00

           Tk. 2,000.00

           Tk. 2,000.00

           Tk. 3,000.00

Total                                Tk. 20,000.00

 

 

 

 


CHAPTER-1

 

 

THEORITICAL BACKGROUND

 

Every firm competing in an industry has a competitive strategy, whether explicit or implicit. This strategy may have been developed explicitly through appalling process or it may have evolved implicitly through the activities of the various functional departments of the firm. Left to its own devices, each functional department will inevitably pursue approaches dictated by its professional orientation and the incentives of those in charge. However, the sum of these departmental approaches really equals the best strategy.

 

Competition

 

Competition includes al the actual and potential rival offerings and substitutes that a buyer might consider.

We can broaden the picture further by distinguishing four levels of competition, based on degree of product substitutability:

 

  1. Industry competition: A company sees its competitors as all companies making the same product or class of products. Volkswagen would see itself as competing against all other automobile manufacturers.

 

  1. Form competition: A company sees its competitors as all companies manufacturing products that supply the same service. Volkswagen would see itself competing against not only other automobile manufacturers but also against manufacturers of motorcycles, bicycles, and trucks.

 

  1. Generic competition: A company sees its competitors as all companies that compete for the same consumer dollars. Volkswagen would see itself competing with companies that sell major consumer durables, foreign vacations, and new homes.

Essentially developing a competitive strategy is developing a broad formula for how a business is going to compete, what its goals should be, and what policies will be needed to carry out those goals.

 

 

 

 

 

 

 

 

 

 

 

 


Process for Formulating a Competitive Strategy

 

  1. What is the Business Doing Now?
    1. Identification

                        What is the implicit or explicit current strategy?

  1. Implied Assumptions

What assumptions about the companies’ relative position, strengths and weaknesses, competitors and industry trends must be made for the current strategy to make sense?

 

  1. What is happening in the Environment?
  2. Industry Analysis

The key factors for competitive success and the important industry opportunities and threats?

2.Competitors Analysis

What are the capabilities and limitations of existing and potential competitors, and their probable future moves?

  1. Societal Analysis

What   important   governmental, social, and   political   factors   will   present opportunities or threats?

  1. Strengths and Weaknesses

Given an-analysis of industry and competitors what are the company strengths and weaknesses relative to present and future competitors?

 

  1. What should the business be doing?
    1. Tests of Assumptions -an strategy

How do- the assumptions embodied in the current strategy compare with the analysis in B above?

  1. Strategy Alternatives

What are the feasible strategy alternatives given the analysis above? Is the current strategy one of these?

  1. Strategy Choice

Which alternative best relates the company’s situation to external opportunities and threats?