A strategic management paper on Solidcard Products Corporation

Date of Publication

2001

Document Type

Oral Comprehensive Exam

Degree Name

Master of Business Administration

College

Ramon V. Del Rosario College of Business

Department/Unit

Decision Sciences and Innovation

Abstract/Summary

Solidcard Products Corporation is a 100% wholly owned subsidiary of Solidbank Corporation. It officially began its operations in issuing MasterCard credit card in August 12, 1996. Other cards like Solidbank Visa and Value Visa were later introduced in the market.

Otherwise known as SPC, it is one among 12 major players in the local credit card industry today. Other players include Citibank, AIG, Standard Chartered, Equitable, RCBC-JBC, diners Club, BPI Credit, Bankard Inc., Hong Kong Shanghai Bank, Unibankcard and PNB. As of June 2000, the company has a total Cards-in-Force of cardholder base of 85,000 (ranked 6th among major competitors in the industry) while sales or gross billing figures amount to PHP1,514,000.00 (good for 4th spot in this particular category). SPC used to occupy between the 6th and 10th position among its competitors.

The company currently offers the following cards (1) Solidbank MasterCard (2) Solidbank Visa and (3) Solidbank Value Visa. SPC's target market include professionals, entrepreneurs and employees that are financially capable of making significant purchases and meeting credit payments. They belong to the A/B/upper C of the socio economic class and are described to have very good credit payment history. Their immediate target would be depositors of Solidbank branches.

The proponent's strategic objectives are as follows: (1) to be one of the top three leading credit card companies in the Philippines by the year 2004 (2) to improve the present levels of revenues, net income, delinquency and cardholder base (3) for its credit card products to be one of the top three top-of-mind mentioned credit cards in local surveys across the local market and (4) to be the first in providing the market with credit card products and services with the latest innovations in terms of features, benefits and customer service. For its financial objectives, the proponent aims to achieve an increase in :

Revenues ---------- 126% in year 2000

60% in years 2001 and 2002

45% in years 2003 and 2004

40% in year 2005

Net income and cardbase-------- 140% in the year 2000

70% in years 2001 and 2002

55% in years 2003 and 2004

50% in year 2005

The company also aims to decrease delinquency rates to 7.5% for years 2000 and 2001, 7.3% in years 2002 and 2003 and 7.1% in years 2004 and 2005.

In order to carry out the said objectives, the following thrusts are to be implemented: (1) improved levels in terms of revenues, net income, delinquency and cardholder base through continuously targeting its existing AB and upper C market and exploring the lower C and D class and provincial cardholders (via conducting market tests), extensive utilization of direct sales, internal programs, and Solidbank's branch network, research and development of customer base profile, utilization of collaterals, distribution of cards through agents, internet use, and the vital roles to be played by Credit Card Policy and MIS/ Cards Acceptance/ Collections (2) to attain top 3 position0 top-of-mind mentioned credit cards across the Philippine market in local accredited surveys via media/ advertising campaign, aggressive promotion of Value Visa, distribution of brochures in selected store outlets, internal advertising and executing other market activities (3) to be first in providing the market with credit card products and services with the latest innovations in features, benefit and customer service through the extensive use of cards during special seasons/holidays, the development of co-branded cards, research and development on new concepts, development of insurance and medical. dental features, the development of SPC credit card as a corporate benefit, establishment of a 24-hour customer service arm, improved standard response time, investment/upgrade present technology, and the implementation of various training programs and succession plan. These will also allow SPC to capture a sizeable portion of its market and sustain its financial competitiveness in the credit card industry, assuring SPC of constant financial growth all the way up to the year 2005.

Abstract Format

html

Language

English

Format

Print

Accession Number

OCE1019

Shelf Location

Archives, The Learning Commons, 12F Henry Sy Sr. Hall

Physical Description

1 v. (various foliations) ; ill. ; 28 cm.

Keywords

Bank credit cards--Philippines; Solidcard Products Corp

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