China has controlled a great deal of interest from almost all U.S. business sectors. The Chinese credit card market is currently particularly intriguing for Western banks. This post analyzes the minefield that is tactical as they try to compete in the Chinese credit card industry that Western banks must browse. As an example, Bank of America (BOA)-fresh from buying a 9% interest in China Construction Bank (CCB) a few years ago-is now considering a joint venture with CCB.
The new business will be tasked with leading the Chinese credit card market. The analysis yields several lessons that are strategic, and supports warning on the division of Western bank executive as they go through the Chinese marketplace. In particular, BOA officials must be pleased about the time of their joint venture's progress. Furthermore, BOA officials should strongly consider fiscal endeavors other than credit, as Chinese culture should prove particularly resistant to serving as a lucrative customer base in the brief- and middle-timeframes.
PUBLICATION DATE: November 15, 2008 PRODUCT #: BH302-HCB-ENG
This is just an excerpt. This case is about GLOBAL BUSINESS
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