Stakeholders are Coming to Require the Goods and Services - Essay Example

?Introduction to Analysis: One of the unique realities of the currently under developed and developing world is with regards to the fact that these stakeholders are coming to require the goods and services that the developed world has relied upon for several decades. In such a way, the means by which the differential between the developed and the developing world is understood is lessened as a result of this increased level of integration. For purposes of this particular case study, the author will analyze the means by which Alpen Bank, a Romanian bank considering implementation of opening a new credit market within the nation of Romania, will be exposed to specific levels of strengths, weaknesses, opportunities, and threats that arise out of such a level of integration. By targeting and analyzing each of these specific compliments, it is the hope of this author that a further level of understanding and market specific knowledge can be derived with regards to the best means by which Alpen Bank can seek to target the market and minimize overall risk while maximizing profit potential. Further, through such an analysis, the author will also hope to shed a level of understanding with regards to what key groups Alpen Bank should seek to target with regards to this new credit availability, what marketing efforts would be best advised with regards to these groups, positioning strategies most suitable for the firm, as well as an elaboration upon the realities of the current market and the way in which Alpen Bank should seek to engage with these determinants. Finally, a tertiary discussion of Alpen Bank with regards to a PESTEL analysis will be offered as a means of providing the reader with a further level of understanding regarding whether a credit market offering of consumer banking with Romania is a good idea or not for the scope and realities of the Romanian market. Strengths: the most obvious and salient strength that can be denoted is with regards to the fact that Alpen Bank is one of the very first entrants into this credit market. Within such a context, the firm has the unique strength and ability to leverage a degree of price setting with regards to the services that they intend on offering the end consumer. A further definitive strength that the firm is able to exhibit is necessarily with regards the fact that they had previously existed within this market and offered a range of consumer products and services that allow them not only to have brand recognition but also evoke a level of trust within the likely consumer bases that they will integrate. Moreover, the experience within credit markets and personal banking that Alpen Bank has specialized since 1983, provides them with a valuable knowledge base and key understanding of considerations with regards to how to integrate more effectively within new and devleping economies and nations. Finally, Alpen Bank has the additional benefit of already being represented within 14 different nations around the globe. Although most of these representations are in highly developed nations, such as Germany, England, Singapore, and Ireland, they also have a level of proficiency in providing consumer banking services in nations as diverse and developing as India and Poland. Weaknesses: the first and most salient weakness which should be discussed is with regards to the fact that although Alpen Bank is a multinational consumer bank that has a presence in over 14 nations, it has yet to be represented within Eastern Europe (with the exception of Poland which dependent upon definition is oftentimes not considered as part of Eastern Europe). Necessarily, this is a weakness due to the fact that the firm will be integrating with clients and an economic/political system that they have little if any knowledge concerning. Another distinct weakness that the firm faces is with regards to the fact that as compared to the other countries in which they currently operate within, there is little broad-based nor historical evidence of consumer credit markets within Romania as such. although it is true that the Romanian economy has recently been integrated within the European Union, many carryovers and difficulties remain. Opportunities: Political/Legal A key political/legal opportunity that exists is with regards to the fact that the political situation in Romania has not existed in its current form for a very long period of time. As such, Romania does not have the same level of entrenched regulations constraining the financial sectors as do many other Western nations that have a very long history of democracy and legislative process. Economic Likewise, a key economic opportunity is with regards to the fact that such integration promotes and represents is that a unique market for growth that is currently untapped and could prove to be a future cash cow for the banking and investment branches of Alpen Bank is made available. Likewise, by allowing such a growth and integration within a new market, the opportunity that is engaged is that the bank will suddenly engage with tens of thousands of future and potential clients that it would otherwise have not had the opportunity to market/sell to. Socio-cultural The people of Romania, especially the younger audience which is to be targeted represent a group that is growing in wealth and fully desirous to engage in credit markets. As such, the key opportunity that is represented on a socio cultural level is with regards to seeking to tap this group and allowing this demographic to be the main motivator of services within the product/service offerings. Technological The more technologically savvy consumers which will be specifically targeted represent an opportunity with regards to the level to which the banking entity is able to integrate with them utilizing advanced smart phone technology, social media, and banking applications for mobile phones etc. Environmental With respect to this particular aspect, it must be understood that there are few if any factors that pertain; however, speaking broadly, should be understood that banking services are fairly immune to environmental shifts – unless of course they are somehow catastrophic and disastrous. Threats: Political As with any developing nation seeking to integrate with the developed world to a more complete degree, the political situation in Romania is rather tenuous as compared to many of the other extant democracies in Europe and elsewhere. Corruption is still quite high and this proves to be a fundamental political/legal threat that could constrain future progress and profitability of the banking institution. Economic Existing banking institutions within Romania have no doubt leveraged the opportunities that exist within this market to a great degree already. As such, Alpen Bank is in a somewhat tenuous position as it seeks to integrate with a new client base within an existing market that already has a great many options for the particular product/service they are offering. Another particular threat which must be engaged with and understood is with relation to the fact that the firm will necessarily leverage a degree of risk in seeking to compete. Within such an understanding, a clear and present threat that exists is with regards to the changing governmental regulations and expanding role in which the rather nascent democratic structure of Romania will do in the near future. Socio-cultural Although it is true that the stakeholders within Romanian society are in need of credit markets and Alpen Bank could fulfill this need, there is also a socio-cultural threat that credit availability and need will not translate to demand in the way in which Alpen Bank assumes. Due to the fact that they are offering a service to an economic system that has hitherto been largely without access or prevalence of credit cards, there is no guarantee that this will catch on in a highly profitable manner. Technological Due to the fact that the banking institution is not one that is ultimately constrained by the ebb and flow of daily technology, it is doubtful if any single determinant within this aspect could constrain the way in which Alpen Bank could do business; however, it should be noted that a threat that exists within the technological field is necessarily contingent upon the strength and resilience of the servers of financial information and their level of exposure to hacking. Environmental Just as has been noted above, without the evidence of a direct and otherwise catastrophic natural disaster or complete and total change in the weather patterns or topography of Romania or the surrounding region, it is hard to envision a situation in which environmental changes will directly impact upon the demand or supply of financial services within the country in question. Targeting and Positioning Marketing Efforts As a function of the level of analysis that has thus far been conducted, it is the understanding of this analyst that the best approach that Alpen Bank can hope to engage in is with regards to the target market of the youth. Due to the rapidly increased quality of life and wealth that this younger demographic is able to engage in than the previous generation, they represent the perfect opportunity for the firm as they will be the most likely utilizers of the credit tools that the bank has to offer. Decision Within such an understanding, Alpen Bank can and should engage in a low cost alternative media marketing campaign that has the potential of engaging the potential stakeholders within the target market without incurring the costs that a traditional broad-based marketing approach would entail. Moreover, such an approach, although primary, cannot be all encompassing, and it will be necessary for the bank to engage with other markets and other stakeholders by buying traditional advertising and marketing space. This can be done by branding the firm as a new entrant into the emerging market of Romania. Further, by leveraging the client centric experience that the firm has had over the past several decades, the marketing can be affected to an even more realistic end. Read More