Problem Solution Usa World Bank

Problem Solution: USA World Bank

Over the last few years the banking industry has experienced intense pressure to identify and launch campaigns for new products both in the United States and around the world. This paper will discuss the problems and solutions of USA World Bank (UWB) whom is a major bank with both an international and domestic presence. UWB has branch locations nationwide and enjoys a large consumer and small business base, and has been successful in several worldwide ventures. However, like all international organizations, UWB feels the need to develop profitable new products that will continue to expand its market share. Though new products rollouts have been successful overall, they have been primarily defined within the United States. (University of Phoenix, 2007)

Situation Analysis

Issue and Opportunity Identification

The issues and opportunity identifications facing UWB are described as follows:

The primary issue facing UWB is the company launches a new product yearly and this year a decision must be made about which product should be implemented. Mary Monroe, Vice President of New Product Development is responsible for deciding which new product to present to the Board. Banks are upping the ante when it comes to rewards programs. By 2010, reward expenditures are expected to reach $18.4 billion, a 15 percent compound annual growth rate from the 2006 level of $10.3 billion, according to research from Aite Group, a Boston-based research and consulting firm serving the financial services industry.

While credit card rewards programs will continue to get the lion's share of expenditures, debit card rewards programs are expected to rise from $.4 billion in 2006 to $.9 billion in 2010. Non-card rewards programs are also expected to grow, jumping from $.4 billion in 2006 to $.9 billion in 2010. (Swann, 2007). The competition is fierce in the banking industry; therefore finding unique and profitable products is very difficult.

This year Mary is proposing a credit car that will work like a frequent flier program, where customers can earn rewards as a result of their purchases with the card. The card will be called Instant Rewards.(University of Phoenix,