The paper "The Commonwealth Bank - Issue of Multi-Currency Credit Cards" is a perfect example of a marketing case study. Banking is one of the most fragile and riskiest businesses in the world (Altunbas, Manganelli & Marques-Ibanez, 2011, p. 2). According to Wehinger (2013, p. 2), the massive competition that is present in the banking industry has seen the major players in this sector adopt very dynamic and creative measures to stay afloat and make an edge. Commonwealth Bank is among the banks that have tried to offer a range of diversified services across the board so as to keep itself ahead of the game.
This paper, through the discourse that follows, illustrates this notion through an illumination into a product that is unique and ideally locked to the commonwealth bank. The Commonwealth bank- brief description Commonwealth Bank is a multinational bank with its headquarters in Australia but with subsidiaries in major cities and countries across the globe, some of them namely Asia, Fiji, New Zealand and United Kingdom (The Commonwealth bank website, 2013). The bank offers financial and financial related services namely institutional as well as retail banking, management of funds, insurance as well as brokerage services among other financial services.
The bank was founded in the year 1911 by the government of Australia alongside other three banks and together with them, they created a conglomerate of big banks known and the ‘ big four ‘ in the Australian banking sector(The Commonwealth bank website, 2013). It was not until the year 1996 that the government decided to fully privatize the bank after listing its stock in the Australian stock market in the year 1991.
Starting small, the bank has grown to become a renowned conglomerate and a huge mover in the banking industry, especially in Australia. Following an analysis of the current market and consumer trends, the bank wishes to embark on a project of rolling out multi-currency credit cards. However, due to the fragile nature and huge risks that are associated with this industry, it has become a crucial factor to have the management team go back to the drawing board and analyze the project from a critical angle to try and establish whether the proposed project would fail or not.
The following paragraphs provide a detailed analysis of the project under subtopics strategic focus and plan of the commonwealth, the strength, weaknesses, opportunities and threats (SWOT) analysis, the analysis of the industry and the competitor’ s analysis. Strategic focus and plan for Commonwealth The bank has adopted and created a strategic framework that takes into consideration the interests of the stakeholders (The Commonwealth bank website, 2013). The bank recognizes the value of its stakeholders and tries to maximize the usage of their resources so that they can provide the maximum returns for them.
This strategic plan tries to harmonize the goals and objectives of the bank through building upon the focus areas of the bank. The following are the focus areas of the bank. Sustainability of business practices is among the core of this focus, followed closely by responsible financial services through employment of talented and really engaged personnel (The Commonwealth bank website, 2013). The capacity to create and maintain a trend that easily resonates with the clientele is a very daunting task however, it forms the major focus area for Commonwealth bank.
Other focus areas include community social responsibility (CSR) and concern for the environment. These focus areas serve to endear the bank to the community and paint it in a light that portrays it as the role model and leader of the other financial institutions. These strategic plans are designed by the management team and the board of the bank and then rolled out by the entire bank’ s personnel. They define the bank’ s mission and vision of the creation of long-term sustainability and value for their clients.
It is in this line of strategy, mission as well as the vision that has led the bank to research on this project of issuing multi-currency credit cards. A multi-currency credit card is a card that has the capacity to utilize a number of currencies from different countries. In other words, the card is not locked to one form of currency and the user has the options of utilizing any form of currency that best suits his or her needs at a particular time. Use of multicurrency cards prevents a person from having the need to acquire a number of cards and can conveniently use a single card despite the change of locality.
Altunbas, Y, Manganelli, S & Marques-Ibanez, D. 2011. ‘Bank risk during the financial crisis
do business models matter? European central bank working paper series 1394, retrieved
September 13, 2013 from http://www.ecb.europa.eu/pub/pdf/scpwps/ecbwp1394.pdf
Goyal & Joshi, V. 2012. ‘Indian Banking Industry: Challenges And Opportunities’,
International Journal of Business Research and Management (IJBRM), Vol. 3, No. 1,
Hawkins, J & Mihaljek, D. 2004. ‘The banking industry in the emerging market economies:
competition, consolidation and systemic stability - an overview’, retrieved
September 13, 2013 from http://www.bis.org/publ/bppdf/bispap04a.pdf
King, R. 2004. ‘Enhancing SWOT analysis using TRIZ and the bipolar conflict graph: A
Case Study on the Microsoft Corporation’ retrieved September 13, 2013 from
Kotler, P. 2000. ‘A Framework for Marketing Management’, pp. 1-716, Prentice-Hall, Inc: New
Llewellyn, D. nd. ‘Banking in the 21st Century: The Transformation of an Industry’, retrieved
September 13, 2013 from
Ommani , A.R. 2011. ‘Strengths, weaknesses, opportunities and threats (SWOT) analysis
for farming system businesses management: Case of wheat farmers of Shadervan
District, Shoushtar Township, Iran’, African Journal of Business Management, Vol.
5, No. 22, pp. 9448-9454.
Stephanou, C. 2011. ‘The Banking System in Cyprus: Time to Rethink the Business
Model?’ Cyprus Economic Policy Review, Vol. 5, No. 2, pp. 123-130.
The Common wealth bank website. 2013. ‘Sustainability: who we are’, retrieved September
13, 2013 from https://www.commbank.com.au/about-us/who-we-are/sustainability.html
Wehinger, G. 2013. ‘Banking in a challenging environment: Business models, ethics and
approaches towards risks’, OECD Journal: Financial Market Trends, Vol 2012, No.2,