Market entry strategy for a nationalized bank in the credit card industry

Abstract

The credit card industry has undergone a sea change since the liberalization of Indian economy in 1991. Most of the International players have developed a presence in the Indian market. Indian banks have also lately entered this market. Even though the industry is dominated by a large number of international players still there is little differentiation in terms of the facilities offered like online trading, add-nos, insurance policies etc. Their media for use of cards are also the same, i.e., Master or Visa. They only differ in their terms and conditions like interest rates charged, credit-limit etc. Moreover, each bank has its own strengths and weaknesses. For instance the foreign banks have their brand value whereas the Indian banks have their existing customer base and wide distribution network. This report looks into the industry structure, the customer preferences and other relevant issues facing the credit card industry to develop an entry strategy for a nationalized bank.