In recent years, the banking industry has experienced tremendous pressure to expand its market share globally. As a result, USA World Bank (UWB) is introducing more effective products and services to its customers. Competition has made selecting a successful product considerably more difficult than previous years; therefore, creating an exceptional and profitable product has become very challenging. UWB is a global organization that must create products to improve profitability and increase its market share. This analysis will identify challenges and opportunities, business goals, and potential problems preventing the successful launch of UWB's strategic goals.
Scenario Background USA World Bank is a major player in the banking industry. Boasting both a large consumer and small business customer base, UWB has experienced marginal success on recent initiatives. UWB's President of New Product Development feels the pressure to present a product to the Board of Directors that will have significant impact on the firm's earnings (University of Phoenix [UOP], 2007).
Based upon the decision to introduce a new product, UWB's leadership team is now in the midst of deciding whether it would be more beneficial to focus on the consumer or small business market. As a result, the executive team has come up with two options: offer an instant reward credit card for consumers. Similar to a frequent flier program, an instant reward consumer credit card would collaborate with airlines, hotels, and retailers enticing the cardholder to make purchases with UWB credit card. The second option is the small business credit card with a $200,000 credit limit for capital purchases, offering discounted interest rates and incentive rewards.
Mary Monroe, Vice President of New Product Development, and Jim Wilson, the Vice President of Marketing Development presented their products to the executive staff. The executive staff supported both Mary's Instant Rewards and Brian's Small...