BARCLAYS BANK IN INDIA

Barclays Bank in India



Barclays Bank in India

Introduction

Barclays in the mid 1960's, realised the importance of change in order to achieve its goal of being the market leader in banking and other financial services. Barclays bank is the top credit card processor and consumer lending services in the India. It has its main office located in Northampton.

It has a global coverage with operations in UAE, Germany, Spain, Greece, Italy, Portugal and Africa. This geographical spread coupled with its information technology competence is responsible for the competitive strength of Barclays bank.

Since the emergence of credit cards business in the India there have been other players in the market. (E.g. IDBI Bank, Union Bank of India and Andhra Bank).

This paper therefore, aims to critically analyse the strategic processes, positioning and successes of Barclays bank in credit card market. Hence presents a comprehensive Market Analysis report.

Macro-Environment Analysis

The macro environment analysis and will critically evaluate the factors that ignite changes in the credit card business environment.

Drivers of change:

The introduction of “white paper “ on credit card borrowing in 2003 , by the India government which tends to affect the profitability of Barclays bank business. The introduction of new power for regulation and new forms of credit card policy by the Minister. The introduction of honesty table which came as a result of the government enquiries into decline in interest rates of credit card. The published average revenue stream from credit card issuers and processors enhance the strategic development by credit card business organisation. Technically, the introduction of smart or chip card affected card processing and the credit card business in general. The transition from paper to electronic processing that introduces large scale economics din card processing.

Impact of Change:

Barclays bank negotiated a franchise from Central Bank of India to start the credit card business in India. The launch of the brand Barclays bank attracted 30,000 retailers who signed up six months after the launching. Global leadership in operating

ATM

Expansion: Barclays bank grew to be the largest credit card business in the India, Europe and Africa. There was an increase in the product range and services to customers. Which was induced by competition between India card issuers?

The introduction of credit card for corporate business functions. The roll out of chip card to combat fraud.

Result of Change:

The Loss incurred for the first decade of the operations of Barclays bank as it builds up its card and market volume.

Barclays bank issued the first ever credit card in the India.

Started the first loyalty scheme in the India.

Globalisation of service and products

Barclays bank increased its customer base in the credit card business sustainable. Development of high pricing strategy to assist the parent organisation. The transition from paper to electronic processes induced Barclays bank to improve the electronic processing using its IT. Barclays bank formed strategic alliances with partners in the market.

Micro-Environment

Industry and Competitors Analysis

The porter's five forces model will be applied in this section to analyse the competition in the ...