Case Name :      Bank of America and the Chinese Credit Card Market

Authors :           Charles Dhanaraj, Jing Li, Justin W. Evans

Source :             Ivey Publishing

Case ID :            910M55

Discipline :        General Management

Case Length :    11 pages

Solution Sample availability : YES

Plagiarism : NO (100% Original work)

This case addresses Bank of America Corporation’s contemplated joint venture with China Construction Bank to enter the Chinese credit card market. The case builds on the questions of strategic alliances in foreign markets and the state of the banking and credit industries in China generally. The teaching purposes include 1) understanding the transferability of a business model to a foreign market and assessing the implications of the political, economic, social and technological environment on a firm’s strategy in that market; 2) understanding the institutional context of business in a foreign country – specifically the regulatory aspects of the banking industry in China; 3) exploring the cultural implications for business decisions, and the need to understand the nuances of the business model while translating it to radically unfamiliar environments; and 4) understanding the role that local partners play in joint ventures and exploring some aspects of partnering strategies in overcoming institutional handicaps.