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Case Study On Visa

Decent Essays

Trixia Tan
113900
Visa Inc. Visa is a company with high market share and as the first card network in the United States, they are already experienced in this industry. Internally, the company has already created a system that sticks or rather an operating system that makes them the top player in this industry. However, externally, there is inevitable change and opportunities that the company should address. Based on the given article, the problem with visa is that externally there are opportunities and threats that makes them more viable to losses in the long run. Using SWOT analysis, the strengths of the company would be its existing market share and its experience in the industry. The weaknesses of the company is that they can't penetrate the chinese community market and based on their competitors, they are more expensive to use. This is due to their double conversion method and high rates. As for the opportunities, given the statistics that there would be higher purchasing power for Chinese travelers in the United States and that there would be an increase in …show more content…

In the global perspective, China UnionPay is a new entrant, however, CUP already has high competitive advantage due to their hold in China. (2) The Chinese policies that prevents the foreign banks or foreign corporation, like Visa and Mastercard to penetrate their market. (3) competitor's lower rates also pose a threat to the company due to consumer's preference to this. (4) there is also the complaints regarding the high rates of Visa and Mastercard which gives a bad image to the company. (5) There is also an increase in the competitors' market share, especially in CUP's case. (6) Product can also easily be substitutable from its competitors and (7) competitor has greater customer loyalty than Visa Inc. Lastly, (8) the competitor's much more flexible and cheaper conversion process than that of Visa

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