Capital One 's Marketing Strategy

3. What are the consequences of Capital One’s IT strategy for expansion into different segments of the credit card industry, and into other industry’s?

Capital One was a monoline credit card organization in the mid 1990s. Capital One constructed a solid credit card business. This procedure paid off but if the credit card buisness were to decline it would mean disaster for them. Capital One expanded into retail banking in the late 1990s and mid 2000s. It was to decrease the hazard from a monoline business. Capital One was one of the pioneers in utilizing information examination to assemble a client profile for its credit card business. The bank additionally

The United States lending industry’s main focus has become accentuating profits; therefore, they have made it impossible to live without a credit card in today’s economy and to avoid being taken advantage of by the banks. James Scurlock, director and producer of the film, “Maxed Out”, devotes his movie to informing the audience of the credit card system and its many flaws and gives examples of people who are majorly affected by the pressure the lenders apply. Throughout the movie, numerous statistics, and expert testimonies are presented, as well as comparisons and appeals to emotion. Through the use of this support Scurlock, is able to convey his overall message and propose numerous minor arguments that clarify

This research paper will describe Capital One’s general environment, technology and political and legal segments, forces of competition, Predicting and addressing forces, strengths, weakness, opportunities and threats (SWOT) as well as resource capabilities.

CapitalOne was founded in 1988, 29 years ago and it is the eighth-largest company in the United states. It’s primary business deals with retail banking, Credit cards, Loans, Savings. Unlike other diversified financial services firms, Capital One began as a "monoline", meaning the vast majority of its business was in consumer lending, particularly credit cards. While many other monolines were acquired by larger, diverse banks. Capital One expanded

Not only for those seeking to retire, the business motivated economy has transfigured how one must live in order to live comfortably. Building credit through credit cards is often perceived to be the only way in order for a buyer to appear credible. Yet in the quest for the optimal credit score people enter into debt. Considering and evaluating the risks and benefits to credit cards may contribute to opinions towards those flimsy pieces of plastic.

The company has recently made moves to build its retail banking business and its credit card business. In 2012, Capital One completed the purchase of ING Direct USA, a deal that added $80 billion in deposits to the company's balance sheet. It then added HSBC's US credit card business. This move added $28 billion worth of credit card assets to the company's portfolio. These acquisitions were substantial in nature - $9 billion for ING and $31.3 billion for HSBC (No author, 2012). They indicate that the primary focus for growth at Capital One is to build on its core businesses. Such expansion of its two largest businesses indicates that Capital One is more interested in focus there than in expanding

Credit cards in circulation have been growing at a 35% rate which represents a good opportunity for Alpen

CIBC has focused its core business on retail and business banking, wealth management, and whole sale banking. They have shown a proven track record of providing there customers with financial services and advice through a group upwards of 1100 branches worldwide. Strategies CIBC has portrayed is to continually find new ways to enhance the experience of the client and to stimulate safe revenue growth. CIBC has put emphases on creating deep meaningful relationships with all clients, constantly trying new ways to improve service and sales prospects and to create relationships with new clients while retaining existing clients for a long period of time (CIBC).

The Costco strategy for getting into the wedding gown business is to have a set of touring trunk shows at its Western stores during the season where people are planning their weddings. Costco's typical pricing strategy is to undercut competition and make up for this with high volume sales. The company applies this strategy to the wedding gown business as well. Costco offers one of the lowest prices of any company on its wedding dresses. The company's business plan ensures that the details have been fleshed out, and that has led to the unique distribution strategy for wedding gowns.

In the year 1949, a businessman by the name of Frank McNamara, conceived the world’s first idea for a credit card. The idea was intended for when McNamara went out for an important diner. While he was out, he realized he had left his wallet at home and was unable to pay for the dinner so he needed something that could allow him to come back and pay for the balance later. Overtime McNamara’s credit card idea has evolved into an electronic way of making payments, we now use credit cards to purchase groceries at the local market and make payments online since handing cash through the Internet is virtually impossible. This small dinner idea was created for the purpose of basically generating and IOU for a man who forgot his money at home has

In 1996, Citibank was an emergent banking institution attempting to increase its market share in the competitive Los Angeles area. In order to do so, the bank’s strategy was to focus slightly less on their financial growth, and much more on providing “a high level of service to its customers”. Management viewed this paradigm shift as “critical to the long term success of the franchise”.

The board has hired me to consult with you, the CSI commercialization team, on the go-to market strategy and lend a hand by recommending any advice I may have in order to realize the board’s vision. I understand that the board’s strengths are not in marketing and I will be recommending any changes to the strategy, as well as any marketing best practices recommendations, straight to the board. The board wants a framework that will enable rapid growth while developing strong and sustainable customer relationships, and I will help CSI to find and establish that framework. From what I understand, the board believes that creating sustainable business is a result of strong customer relationships and knowledge and that new product development will be driven by understanding customer wants and needs, and you are absolutely correct. I will be recommending general marketing, sales, and customer relationship strategies, what customer relationship management technology or technologies that CSI can benefit from, and how those technologies can be selected and implemented in order for CSI to achieve your vision.

The financial sector has experienced enormous change over the past few decades. Evaluating the changes that have transpired over the last 40 years is amazing. Transformation of the industry began in the 1970’s when the Federal Reserve announced the U.S. dollar was moving away from the gold standard and has culminated today with the latest technological applications. Henceforth, the ways financial transactions take place have forever changed (López, Setola, & Wolthusen, 2012, p. 300-302).

A payment card is mostly electronically linked to an account or accounts belonging to the cardholder. These accounts could be deposited accounts, loan or credit accounts, and the card is a means of authenticating the cardholder. The Wal-Mart–Visa/MasterCard “honor-all-cards” settlement and the proposed First Data– Concord EFS merger is just two examples of the dynamic forces at work in this industry.