This researcher will Identify and describe the key environmental forces that have immediate strategic implications for Capital One. Identify and describe the capabilities and weaknesses within Capital One that have immediate strategic implications. Define Capital One's business-level and corporate-level strategies and evaluate each for their potential for continued success. Evaluate the strategic fit of Capital One's recent acquisitions. Describe the key strategic issues raised by the company's acquisition strategy. Assess Capital One's international position.
Identify and describe the key environmental forces that have immediate strategic implications for Capital One.
Capital One Corporation is a Bank holding company. Capital One provides a wide array of financial services to the consumers. Capital One offers consumer and commercial Lending, consumer deposit products and Capital One Auto finance(Hitt, 2009). Since going public in 1994, Capital One has aggressively increased there market foot print in the global arena. Capital One has diversified its portfolio by adding mortgage, home equity loan, automobile financing and many other specialize consumer lending products. Capital One is well known for its customized credit cards. This was done with the support of its Information –Based strategy (Hitt, 2009). The system utilize sophisticated data mining techniques to match it credit cards with the targeted customers based on their credit scores. The IBS system would then divide the consumer into three categories depending on their FICO scores. The groups are super-prime (excellent credit history), prime (average credit history) and finally sub –prime (poor credit history).
Capital One use this system aggressively in on boarding new customers for its credit cards products and automobile financing. The credit card and automobile industry are taking a big hit currently due to the economy not doing too good. Firms locally and globally are cutting cost by laying off their work force. Because of this the key environmental forces that have immediate strategic implications for Capital One are the increase in the number of personal bankruptcies during the recession. The unemployment rate is going up. The consumer debt has continued to rise. Many consumers are unemployed and can not make their monthly credit card payments.
Identify and describe the capabilities and weaknesses within Capital One that have immediate strategic implications.
As part of Capital One capabilities they use an Information Based Strategy. This allows Capital One to customize their credit cards to the targeted consumers. This robust system divides the consumers into three manageable groups. The groups are super-prime (excellent credit history), prime (average credit history) and finally sub –prime (poor credit history). “The bank offers 7,000 variation of its MasterCard and Visa cards, each one is customized to appeal to different customer preference and needs by combining...