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1) Market Structure I What is the relevant market? I What barriers to entry / exit exist for this market? I What market type would

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1) Market Structure I What is the relevant market? I What barriers to entry / exit exist for this market? I What market type would you characterize this market as? For this question, consider the 4 market structures you should have learned in Micro but which are also discussed at the end of chapter 7(perfect competition, monopolistic (or imperfect) competition, oligopoly and monopoly). -) Make sure that this is consistent with your barriers to entry and other key characteristics of the market structure you picked 2) Demand Side: Discuss the dynamic of demand for credit cards in developing countries, using Romania as proxy. Your answer should: I Specify what Alpen Bank believes to be the determinants of demand (i.e. those factors / variables that would be in the demand function); I Discuss the trends in those determinants that led Al pen to revisit credit cards in Romania; I Discuss which, if any, of these determinants you believe Alpen could influence, and discuss if Al pen was intending to attempt this type demand side strategy; 3) Supply Side: there are many different costs presented. You will want to determine which are fixed cost and which are variable costs. You will want to estimate (or at least think about HOW YOU WOULD ESTIMATE) acquisition costs per different customer segment using different acquisition modes. 4) If you were Gregory Carle, what would your recommendation to HQ in Zurich be? You must argue either to launch or not, and if so, what type of credit ca rd (5). (Hint: remember what yourjob as manager of a firm is!) Listed here are some suggested things to think about I use in your analysis. I How would you position your credit card (i.e. premium, two-tiered, etc)? Why? ' Please consider the two key conditions we've presented -) Margin condition -) Markup condition Does your suggested positioning meet these conditions? (see below for additional ideas) Note: If you can answer these questions, you can determine whether your recommendation is feasible. What is the cost of customer acquisition (remember, varies depending on how you position and use analysis from #3)? What is the brea keven number of customers you would need for each option you consider? How many years might it take to achieve this it

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