Nextcard - a Marketing Case Study

1861 Words May 30th, 2007 8 Pages
Company Overview

NextCard was an internet-based provider of consumer credit founded in 1996 with a mission to revolutionize the credit card industry with its online application and approval process. Their product, NextCard Visa, was promoted as the "First True Internet Visa" and was marketed exclusively through the company website. The NextCard Visa could be used for both online and offline purchases and offered product and service enhancements specifically designed for the internet enabled consumer. At the company 's inception these unique services were not offered by their competitors. These services included: a customized application process that provided a 30 second approval process, ability for consumers to personalize credit
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The opportunities available to NextCard are as follows:
- Internet marketing constructs an extensive community of buyers
- Growth of the internet and its users provides opportunity for immediate access
- E-commerce expansion allows for international as well as domestic reach

As a compliment to the internal strengths of a business, external opportunity factors have the potential to make a NextCard more enduring and profitable.

NextCard threats are:
- Possible rejection to on-line enrollment/marketing
- Competition will increase due to the low barriers to entry in the market: offline companies are coming online
- Speedy review of account allowed for error (consumers with poor credit approved)

While preparing for success, business should also be equipped to counter things that have the potential to adversely affect operations.


The most significant problem associated with the demise of NextCard is their aggressive marketing and lack of focus on their financials. The company was incorporated in 1996, changed their name to

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