OCBC Bank's Credit Card Business: An Integrated Case Study Report

This report provides an integrated case study analysis of OCBC Bank, focusing on the challenges faced by its credit card business. It begins with a background of the organization and identifies key problems such as low customer satisfaction, technical difficulties, and intense competition. The analysis employs Porter's Five Forces model to assess the competitive landscape, the STP model to analyze target markets, and customer loyalty frameworks to improve retention. The report also includes a SWOT analysis and PEST analysis to evaluate the internal and external business environment. Finally, the report proposes solutions to address the identified problems, aiming to improve OCBC Bank's performance and competitive advantage in the credit card industry. Desklib provides access to similar case studies and solved assignments for students.

Integrated case study
analysis

Table of Contents
Executive summary..........................................................................................................................3
INTRODUCTION...........................................................................................................................4
MAIN BODY ..................................................................................................................................4
Case brief: Description of the situation.......................................................................................4
Problem statement, plan of analysis.............................................................................................5
An assessment of the current positions faced by KIA Motors ....................................................8
Proposed solution to problem....................................................................................................10
REFERENCES..............................................................................................................................12

Executive summary
This report is based on the integrated case study analysis of an organisation and in order
to demonstrate various prospects of the report, case study of OCBC Banks is taken into account.
For completing several aspects of the respective report, the problems that are faced by this
organisation towards attainment of its set objectives and goals will be discussed. In addition to it,
there will be a background of the organisation for making an analysis on business operations of
the organisation. This report also covers the challenges faced by OCBC Banks in achievement of
its growth as well as different frameworks and theories along with strategic approaches will also
be described to analyse different aspects such as competitors analysis framework, STP model
and many others. Furthermore, current positions faced by OCBC Banks will also be taken into
account and along with this, the solutions that best fit the issues will also be discussed within this
report in the form of recommendations to the respective organisation.

INTRODUCTION
Case study is considered as an approach of research that is used for conducting an in-
depth analysis of the particular cases, multi-faceted understanding of a complicated issue within
the real-life context. An integrated case study analysis provides assessment of the professional
abilities as well as capabilities and skills along with exploring the perceptions of the reporter on
effectiveness of the integrated case study. This kind of case study covers comprehensive cases
which facilitates in throwing a light on the different issues of situations, marketing and
challenges (Anvarovich, 2021). In order to conduct such type of analysis, a reporter is required to
enhance its written and verbal communication skills through making different analysis of the
case. Within this existing report, an analysis of a case study is going to be described and case
study of OCBC Bank is taken into consideration in order to demonstrate multiple prospects of
this report. For accomplishing several aspects of this report, the problems which are faced by the
respective organisation within its path of meeting organisational aspirations will be covered in an
effective manner. Additionally, this report also includes the background of the selected
organisation for the purpose of analysing the performance of the business in a successful way.
Within this current report, the challenges faced by OCBC Bank in attaining its growth will also
be mentioned. Various models, approaches or theories are also going to be used for analysing
different aspects. Beyond all these tasks, the current positions which are faced by the respective
organisation are also going to be discussed as well as the solutions to these positions will also be
taken into account in order to achieve the growth and success of the organisation effectively and
efficiently.
MAIN BODY
Case brief: Description of the situation
Within this report, the case study of OCBC Bank is taken into account for covering
different concepts of this report. According to the given case study, Tammy Ang has been tasked
with the preparation of a business pitch for the respective bank's credit card business (Arifin,
2021). Within March 2020, Institute of Service Excellence had released its 2019 findings on the
credit card industry on the basis of study of Customer Satisfaction of Singapore. OCBC Bank's
credit card business was again ranked last amongst the credit card issuers studied. The bank has
scored 72.1 points on a scale of 0 to 100 and trailed behind market leader Citibank which has

scored 73.5 points. Therefore, credit card business of bank has constantly ranked poorly on index
for various years. It has also been mentioned in the given case study that for improving service
sector performance in Singapore, ISE had been conducting CSISG study whose outcomes were
released to both the media as well as industry along with providing consulting services and
research. It has also been stated that through intense competitive credit card market within
Singapore, Ang felt that merchant tie-ups could be critical for helping OCBC Bank in improving
its performance within such area (Bhatia, 2022). As per given case study, personal credit card
industry was dominated by 8 major organisations within the year 2019 and among local issuers
were three key local banks including DBS Bank, UOB and OCBC Bank. Other foreign financial
institutions including American Express, Standard Chartered, Citibank, HSBC and Maybank. In
context to competition, credit card business has been tended to be extreme dynamic with issuers
consistently refreshing as well as reviewing their current portfolio of cards. Organisations also
provided limited time promotions like free gifts for new sign-ups for capturing market-base.
Within the year 2019, OCBC Bank was considered as third-largest issuer by transaction value
and has held 15.9% of customers by transaction value. On other hand, top two issuers including
DBS Bank and UOB held market-base of 26.9% as well as 20.3% respectively.
Problem statement, plan of analysis
Statement of the problems in the case:
The organisation OCBC Bank had faced various problems in the path of its meeting
organisational aspirations as well as attaining growth of the business. The statement of the
problems which are included within the case of the respective organisation are mentioned as
follows:
1. The company had to face lower level of satisfaction as well as loyalty for the credit cards
of the banks which is a major problem for OCBC Bank as the business of credit cards
was ranked last in terms of customer satisfaction (Das, 2020).
2. Another problem faced by OCBC Bank is that the organisation was facing technical
difficulties which are preventing the market share from using its automated teller
machines as well as internet banking network.
3. Problems related to extreme level of competition within the credit card industry in
Singapore has also been faced by OCBC Bank in chasing competitive advantage over its
competitors within the marketplace.

4. The company has also been provided limited time promotions that has created a problem
in capturing more and more customers.
5. There has been relatively less number of market share with OCBC Bank in comparison to
the top issuers within the credit card industry.
These are all the statements of the problems that are faced by OCBC Banks at time of
achieving its success as well as growth effectively.
Proposed plan of analysis
Within this section, there will be description and evaluation of different models or
approaches in relation to OCBC Banks for addressing the problems faced by organisation
(Ibrahim, 2018). Hence, first of all Porter's Five Forces Model will be explained in context to
respective company for analysing market competition and industry.
Porter's Five Forces would assist OCBC Bank to determine competitive scenario within
credit card industry in Singapore. This framework also facilitates in development of effective
business strategies of the organisation. The five forces of this model are discussed as under in
relation to OCBC Bank:
 Threat of new entrants: New entrants get entry into the credit card industry can make a
complex problem to OCBC Bank as new entrants may possess more attractable plan for
capturing market-base like interest rate of loan is less expensive, enhance time period of
life insurance policy, etc. For instance, Julybank is new entrant bank from Singapore
having huge monetary expense as well as capital interest within Malaysia (Lai, 2019).
Hence, it is a high threat for OCBC Bank to compete within banking and finance industry
because promotions and offers of company are not attractive enough which may lead to
loss of profitability in long-run.
 Threat of bargaining power of buyers: In case if buyers have strong bargaining power
then they generally tend to drive the price down which leads in reduction of potentiality
of OCBC Bank to earn sustainable profit margins.
 Threat of bargaining power of suppliers: If suppliers have strong bargaining power
then they will extract greater prices from OCBC Bank which will influence the
potentiality of bank to maintain above average profitability within credit card industry.
 Competitive rivalry: This force of Porter's Five Forces Model states that high level of
competition will be difficult for existing players like OCBC Bank in earning sustainable

profits. Therefore, it is a moderate threat of competitive rivalry to respective organisation
within credit card industry.
 Threat of substitute products: In relation to OCBC Bank, Visa holder of organisation
may changes to Public Bank as respective organisation Mastercard requires to charge
RM68 per annum expenses and Maybank without accuse any charge of Debit card and
get similar capacity with credit card (Liu and et.al., 2019). Hence, there is moderate
threat of substitutes for OCBC Bank.
Another model of STP is discussed below for analysing the target market of the OCBC
Bank and effectively positioning its services within the marketplace with the support of better
promotional channels:
STP Model derives from its three steps of segmentation, targeting and positioning and its
use in marketing is to discover profitable marketing segments as well as recognising target
audiences for marketing activities. These three different stages of this model are discussed as
under in relation to OCBC Bank:
 Segmentation: It is a process through which OCBC Bank decides to segment its whole
market into smaller groups and segments that are having same buying behaviour,
attributes, socio economic background and many others. This is done for capturing a
large number of customers within the marketplace towards services of organisation and
brand itself in a more effective and efficient way.
 Targeting: It is the second stage of STP Model and according to this stage, OCBC Bank
targets its market segments and uses customer-behaviour factor for targeting its potential
market share so that it can identify their preferences and deliver timely, compelling offers
that boost across-sell conversion percentage by doubling digits as well as lifting return on
marketing investment through triple digits. Positioning: This is the last stage of STP model and at this stage, OCBC Bank position
its business services in an effective manner (Long Nguyen and Megargel, 2022). In order
to position its services, the organisation is required to promote its services within
marketplace among its customers for generating awareness. The organisation can make
use of personalised marketing as promotions and offers of the organisation are not
attractive enough. This helps company in attracting a wide number of market-base within
the marketplace.

Framework for improving customer loyalty
Customer loyalty models are the frameworks that can be used by an organisation like
OCBC Bank for strategising, measuring and improving customer loyalty and retention. Net
Promoter Score is considered as a voice of customer tool which can be used by respective
organisation for collecting feedback from its customers (Lui and et.al., 2021). It provide
assistance to OCBC Bank in maintaining customer loyalty towards organisation and chasing
competitive advantage over competitors within the credit card industry.
An assessment of the current positions faced by KIA Motors
This section includes analysis of the internal as well as external business environment of
the organisation and also analysing the factors that impact the performance of an industry. In
order to analyse the internal and external environment of OCBC Bank, model of SWOT Analysis
and Pest Analysis is used. The SWOT Analysis of OCBC Bank is explained as below for
analysing its internal strengths and weaknesses along with ascertaining external opportunities
and threats to company:
Strengths Weaknesses
 Number of Acquisitions: This is a
major strength of OCBC Bank has
acquired various large organisations
within its course of journey such as
Four Seas Communications Banks
within the year 1972, acquisition of
Keppel Capital Holdings in 2001 and
many more.
 Range and Speed: It is another
strength of OCBC Bank that the
organisation has a broad distribution
network of 570 branches within over 18
nations including Indonesia, Singapore,
Hong King, etc. which makes sure its
services are easily accessible to wide
 Cash Flow Problems: It is the major
weakness of OCBC Bank as there is a
lack of appropriate monetary planning
at bank in relation to the cash flow
which results in certain situations
where there is not suitable cash flow as
required leading to inessential
unplanned borrowing (Mengniyozov,
2021).
 Dependency on Singapore and
Southeast Asia: It is another weakness
of OCBC Bank that its global presence
is not up to the mark and respective
organisation is more reliable on
Singapore and Southeast Asia regions.

people of customers timely throughout
entire country.
The bank has also lagged behind the
top Southeast Asian bank in context to
various branches.
Opportunities Threats
 Expansion to other global markets: It
is a great opportunity to OCBC Bank
for expanding its business to more
developing countries along with Middle
East countries also like Abu Dhabi (N-
HART, 2018). This will provide
assistance to the respective organisation
in capturing a large number of market
share within the marketplace.
 Interest Rate: It is another great
opportunity to OCBC Bank to have low
interest rates in comparison to the
previous years that helps the
organisation in chasing a competitive
edge through undergoing expansion
projects which are financed with loans
at a cheaper interest rate.
 Global Competitors: It is a major
threat to OCBC Bank that in case if the
bank wants to enhance its business
throughout the world then it has to be
careful of the policies made by them or
the ways in which it provide services
within the international markets or how
it market itself, where already existing
local banks are what the people trust in.
 Uncertain conditions: It is another
threat to OCBC Bank that the dynamic
market environment makes it typical to
be vigilant as well as to take
precautions before the occurrence of
any kind of crisis. COVID-19 is one of
the major example of an uncertain
condition that has made most of the
businesses go on a complete shutdown
as well as only visioners were and can
chase advantage of such circumstances.
The Pest Analysis of OCBC Bank is explained as below for analysing the impact of
macro-environmental factors on the performance of an industry (Nicoletti, 2021):
Political factors: Trade restrictions, changes in taxation policy, intellectual property protection
and political stability are some political factors which must be considered by OCBC Bank for
developing its effective business growth as well as development.

Economic factors: These factors include inflation, savings rate, interest rates, exchange rates,
interest rate of loans are critical for OCBC Bank for understanding the impact of such factors
that greatly influence economic environment of the country.
Social factors: Cultural norms, life expectancy, traditions, social values have a great impact on
the culture of organisation. OCBC Bank must have concerns about social values and provide
welfare to them that enhances the reputation of bank within the marketplace and thereby
increases its performance level (PUTRI, 2018). In this way, the company maintain retention of
its customers in a great manner and thereby also maintains customer loyalty effectively and
efficiently.
Technological factors: The relevance of comprehending technological aspects throughout the
strategic process of decision making has risen as a result of progress of fast technology as well as
dissemination around the world. Hence, OCBC Bank is required to adopt advanced technologies
within its business that will help in saving both cost and time of the organisation. In such
manner, the advancements in technology help the company in chasing competitive advantage
over its competitors within the marketplace and also enhances the level of customer satisfaction.
Proposed solution to problem
From the above discussion of the report, the solutions to the above mentioned problem
can be drawn. The major solution to the problem of staying competitive within the competitive
business environment is that OCBC Bank must recognise for its financial stability as well as
strengths. The financial advisor must be strong within the respective bank in Singapore.
Managing risks as well as ensuring that the company is lending in a responsible manner have
always been the major tenets of the approach at OCBC Bank. The Board within the organisation
must oversee the effectiveness in management of all the risks such as ESG risks like climate
change (Vitolla, Marrone and Raimo, 2020). The organisation is also required to consider its
internal strengths in order to overcome the weaknesses that exist within the business as it will
provide assistance to the company in chasing a competitive edge over its competitors within the
marketplace. Through analysing the different forces of Porter's Five Forces Model, it is evaluated
that OCBC bank is provided solution to frame or design effective business strategies that
facilitates the respective organisation in leading the competitive market in a very successful
manner. Another solution that should be given to OCBC Bank is that the company must target
effective market segments so that it can reach up to a large number of market share and offer its

services to them through understanding their perceptions towards the services of the company.
The bank is also advised to adopt effective promotional tools and technologies for the purpose of
better positioning of its services among the market-base through generating awareness among
them regarding the features and benefits of the services. In order to effectively promote its
services to its potential customers within the marketplace, OCBC Bank is recommended to make
use of multiple promotional tactics and tools such as social media marketing, digital marketing,
advertising, sales promotion, public relations, offline and online advertising and many others.
Through these promotional channels, the bank can capture a wide number of target market and
enhance the volume of its sales operations within the business and thereby the level of
profitability also got increased within the organisation (Wahyudi and et.al., 2022). When OCBC
Bank will make use of such promotional tools at time of targeting clearly defined groups of the
market share then these will facilitate the organisation in attracting more and more customers
towards the business. OCBC Bank is also required to develop or build its relationships with the
customers which will provide assistance to the organisation in maintaining customer loyalty
towards the business. The Bank must also offer discounts and other offers to its target market so
that the number of market share increases within the organisation. The respective bank is also
needed to consider the feedbacks of its market share regarding the services as well as also
addresses them in an appropriate and effective manner. This will help in maximising the level of
satisfaction of the customers who are connected to business and buy services of the organisation.
In addition to it, there is another solution to the problems of the organisation that OCBC Bank is
required to grab the opportunities which are available to it within the competitive business
environment as it will provide assistance to the company in overcoming the future threats which
may be occur at time of conducting business operations. Moreover, the respective bank is also
needed to consider the impact of those macro-environmental factors which are adversely
influencing overall business performance. After analysing the impact of such factors, OCBC
Bank is required to frame successful business strategies to overcome the adverse impact and
chase competitive edge within credit card industry.

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