Strategic Position With A Franchise Of Bank Of America

Credit was born from Alfred Sloan, “ He set up the nation 's first national consumer credit agency in the 1919 to make his cars affordable”( Digital History). Sloan wanted to make money, sloan was convinced that Americans were willing to pay extra for luxury and prestige. Thus he he created credit so people would buy his cars, even if they were costly. With this new product many americans began to buy cars, clothes,furniture,household products,e.t.c. Pretty soon cars came a symbol of the new society forming in the 1920’s.”In that year, one American out of every 5 owned a car, compared to one out of every 37 English and out of every 40 French car owners”(Digital History). In other words Sloan didn’t care about lowering his price so that more people could

Capital One's (COF) history is shorter than different banks. It was made in 1994. This was when Signet Financial Corp. branched its credit card business into a different section named Capital One. The new corporation was led by Richard Fairbank.

One of the driving factors behind Nextcard believing that it could succeed in the credit card industry was it believed that it could cut cost that tradition ‘brick and mortar’ credit card companies could not. During the 1990’s it was believed that the people

Bank of America is the largest US bank founded in 1904, it has expanded through several acquisitions. By the end of 2009, Bank of America was the market leader serving 82% of the US population and over 53 million customers. They are positioned as number one in online and mobile banking. Their mobile banking services were launched in 2007 and have gained 4 million customers in less than three years. Acquisitions made by Bank of America prior to the financial crisis caused a very strong drop in their stock price.

Richard Fairbank and Nigel Morris, both diligent entrepreneurs, started laying the bricks for their eventual successful company, Capital One, in the late 1980’s. They both worked in the Virginia-based “Signet Bank”. Fairbank started noticing trends in the financial industry that he felt Signet was missing out on. These opportunities were in the credit card industry. He, as well as all of Signet Bank knew that the credit card industry was very risky, but Fairbank was ready to take a chance in this, what can be, highly profitable field.

In order to conduct internal analysis of John Lewis Partnership, value chain analysis appears to be the most useful, it was used by Michael porter (1985). It is used to analyse activities performed by the business. It helps to maximise value

Credit cards were not common during this period. First appearing in 1950, these were used mainly by the wealthy for convenience instead of carrying cash or a checkbook (Durkin & Price, 2000, p. 624).

     With religion playing an important role in the average Americans lives, consumerism began to grow in the white and blue-collar workers. Their families started to spend extra cash instead of saving it. Washing machines, dryers, and new cars became commonly bought items. The Homeowner who needed some extra cash, but couldn’t work enough hours to purchase that item when he needed it, started to use personal credit. This began the craze of credit cards. ”The Diner Club” introduced the first credit card in 1950: By the 1970s the ubiquitous plastic credit card had revolutionized personal and family finance”(Henretta, pg.790). The awareness of addition free time was aware

Those charge accounts had to be paid each and every month—promptly. From its inception in the nineteenth century until World War II, this charge account, thought of as a shopper convenience like gift wrap, defined department store credit (Louis Hyman, Borrow: The American Way of Debt, 100).

U.S. consumers remain addicted to credit. Consumer debt continues to rise to record levels and a significant number of households have lost control of their finances. Credit cards can be a useful financial tool when used appropriately. However, research clearly indicates that consumers are not using credit cards wisely and consumers do not understand the terms and conditions of the credit card contract. Adding to this public dilemma, the practices of numerous credit card issuers have been described as predatory. The Credit CARD Accountability Responsibility and Disclosure Act of 2009, also known as the Credit CARD Act of 2009, is the first major reform of the credit card industry since the Truth in Lending Act of 1968. The Credit CARD Act of

American Express Company (NYSE: AXP), sometimes known as AmEx, is a diversified global financial services company headquartered in New York City. Founded in 1850, it is one of the 30 components of the Dow Jones Industrial Average. The company is best known for its credit card, charge card, and traveler's cheque businesses. Amex cards account for approximately 24% of the total dollar volume of credit card transactions in the US, the highest of any card issuer. [1]

The first credit card was the “Diner’s Club Card” and could be used at many restaurants. Borrowing money increased private debt by $150 billion from the beginning of the 1950s (Macce and

American Express, also know as AMEX, is a global financial services company headquartered in New York City and founded in 1850. With 54,000 employees and a revenue of over 35 billion dollars American Express stands tall on the New York Stock Exchange (Sec.gov). American Express is best known for it’s credit cards, which make up about twenty-five percent of total dollar volume in credit card transactions in The United States of America (Reviews.greatplacetowork.com). American Express’ goal is to maintain a leading and almost elite reputation with as many qualified card holders as possible. American Express does this by concentrating on the customer’s experience and branding that experience. American Express’ key components in maintaining and further exceling into this goal includes focusing on their human recourses, social responsibility, and marketing techniques.

In 1904, the bank had officially opened for business. The company was founded by Amadeo Peter Giannini. By the age of 21, he earned half ownership of the business. Then in 1958, BankAmericard was introduced and licensed to other banks across the country. In 1998, Bank of America began creating the first coast-to-coast banking franchise. As the years went by, Bank of America made great progress. Between 2004-2006, the company bought FleetBosten Financial and MBNA. As of today, the company provides

Citibank should launch the card product in Asia for several reasons. Firstly, Citibank can ride on the rapid economic development in the region via credit card products. Secondly, it is also an excellent way to overcome distribution limitations imposed on foreign banks in the region. Thirdly, it allows Citibank to expand its customer base from the upper income segment to include the rapidly growing middle-income households, which is consistent with its global growth strategy and mission in Asia Pacific. Fourthly, by introducing credit cards, Citibank will be able to cross-sell other product lines such as Auto Loans and Ready Credit