China has commanded a great deal of interest from virtually all U.S. business sectors. The Chinese credit card market is now especially interesting for Western banks. This article examines the strategic minefield that Western banks must navigate as they try to compete in the Chinese credit card industry. As an example, Bank of America (BOA), fresh from buying a 9% stake in China Construction Bank (CCB) a few years ago, is now considering a joint venture with CCB. The new company will … Read more »

China has commanded a great deal of interest from virtually all U.S. business sectors. The Chinese credit card market is now of particular interest to Western banks. This article examines the strategic minefield that Western banks must navigate as they try to compete in the Chinese credit card industry. As an example, Bank of America (BOA), fresh from buying a 9% stake in China Construction Bank (CCB) a few years ago, is now considering a joint venture with CCB. The new company will be entrusted with the head of the Chinese credit card market. In particular, two issues are addressed: (1) whether the Chinese banking market is a sound option at this time, and (2) whether China provides an optimal environment for credit. The analysis results in several strategic lessons and encourages caution on the part of the western bank manager as. Enter the Chinese market In particular, BOA officials must estimate the time evolution of their joint venture. In addition, should consider BOA officials, financial ventures other than credit, such as the Chinese culture should be particularly resistant to. Than profitable customer growth in the short to medium time frame
«Hide

from
Justin W. Evans
Source: Business Horizons
9 sides.
Release Date: 15, November 2008. Prod #: BH302-PDF-ENG
Challenging Confucius: Western banks in the Chinese credit card market HBR case solution

[related_post themes="flat"]