Nextcard - a Marketing Case Study

Competing with international companies is another problem for MasterCard due to different regulations and laws in other countries and regions. Information technology security is another pressing issue for Mastercard; it inhibits the company’s growth, brand image, and potential revenues.

threats and opportunities that must be properly addressed in order to prepare the company for the

cards in making purchases (Associated Press, January 16, 2006). The results of the study of consumers

It is extremely essential to not get swallowed or enveloped by competitors (existing or new). In

A majority of the attractiveness stems from the abnormally low buyer and supplier power. However, this gain is offset by the current low barriers of entry and high competitive rivalry. In order to remain competitive, incumbents must (1) invest heavily in research and development, (2) secure technology via patents, (3) market heavily to monetize products, all of which will diminish bottom line results.

The competition among rivals is very high due to price and non-price factors. Companies try to attract customers to their products by introducing

And that's just in the United States. The card has become more secure and can be managed in the palm of your hands. From freezing your account to making deposits it can be even more secure to making online, over the phone, and on your phone/apps by the touch of your phone. That's how the credit card evolved from being a cardboard to cheap flammable plastic and now a card you can wear out. In the end the credit card was invented by a man that couldn’t pay his bill in a restaurant and thought of one of the best thing that people nationwide could use and that forever changed the way we paid for

The Opportunities discussed below will utilize these strengths while keeping in mind the company’s weaknesses and

On the other hands, business will do what they can avoid profit loss; this could increase competition. Increase in sales from the

A business has many influences that provide a duel effect on its operations. Not only can they cause the business to undergo change and continually adjust to the external factors in the business environment, but they also provide threats and opportunities in the operations process.

Other companies also address the online environment. The great potential and the numerous advantages of doing business on the Internet have appealed many companies. The online environment allows these companies to reach a larger number

As technology continue to refine how products and services are delivered to consumers, competition among industry participants becomes more refined. Organizations that are able to keep up with changing technologies become leaders while those that are not fall behind. Mergers and acquisitions are increasing while causing small businesses to sell out or seek partnerships and cooperatives in order to remain competitive and relevant.

On October 7, 1998 the Department of Justice announced it’s intent to sue Visa and MasterCard on antitrust grounds. U.S. Attorney General Janet Reno said, “The Justice Department’s antitrust division found persuasive and systematic evidence of the harm done to competition in the credit card market. Competitive initiatives that could benefit consumers have been abandoned, delayed or suppressed. Consumer choice has been reduced, and competition among card networks has been substantially restrained”(American Express Company, 2000, 1).

Believe it or not, but being aware of your businesses weaknesses is beneficial for you.

As mentioned earlier, the fewer entry barriers faced by digital disruptors give them a competitive advantage. Earlier competitors of traditional incumbent firms found it difficult to enter markets on account of inability to replicate distributional networks or access natural resources. The Baines limit pricing of keeping the price equal to marginal cost also posed a limit to entry of firms. With onset of digitalization, these challenges of entry barriers do not exist, as technology provides a cutting edge to the disruptors. The digital innovators are able to achieve economies of scale at a faster pace. The digital platforms once innovated, enables these disruptors to produce goods at almost zero marginal cost. The marginal cost of another E book copy or another user page on a