Business organisation
TEACHING NOTES
Barclaycard
Bernardo Bátiz-Lazo and Nurdilek Hacialioglu with contributions by
Jarunee Wonglimpiyarat and Douglas Wood
1. INTRODUCTION
The case study is concerned with how a long-standing market leader tries to maintain market share and develop its business in an industry undergoing significant change. Students are challenged to formulate, evaluate and compare a range of strategic options and to choose the best way forward for Barclaycard
2. POSITION OF THE CASE
The Barclaycard case study lends itself to illustrate how to identify and evaluate possible courses of action. In particular, evaluate
●
the development of direction for Barclaycard’s strategic alternatives (chapter 7 of Exploring Corporate
Strategy),
●
possible courses of action against the criteria of suitability, acceptability and feasibility (chapter 7 of
Exploring Corporate Strategy),
●
issues of synergy and parenting advantage (chapter 6 of Exploring Corporate Strategy).
3. LEARNING OBJECTIVES
The Barclaycard case study develops students’ understanding of how to identify, evaluate and rank possibilities for growth. In particular, the case study will illustrate the issue of how, despite growth in the number of participants and claims of increased competition, credit cards remain a remarkably profitable component in a bank’s portfolio.1 Also, it provides students with insights to forces altering competitive stalemate when competitors use credit cards as loss leaders while incumbents try to run for profit.
Specific goals include allowing students to:
●
develop a sensibility for the business environment of a sector with diminishing profitability margins; 1
“It would be foolish to suppose that a market that has become more competitive has necessarily become very competitive”,
John Vickers, Chairman, Office of Fair Trading, 27 February 2001.
This note was prepared by Bernardo Bátiz-Lazo (London South Bank University) and Nurdilek
Barclaycard
Bernardo Bátiz-Lazo and Nurdilek Hacialioglu with contributions by
Jarunee Wonglimpiyarat and Douglas Wood
1. INTRODUCTION
The case study is concerned with how a long-standing market leader tries to maintain market share and develop its business in an industry undergoing significant change. Students are challenged to formulate, evaluate and compare a range of strategic options and to choose the best way forward for Barclaycard
2. POSITION OF THE CASE
The Barclaycard case study lends itself to illustrate how to identify and evaluate possible courses of action. In particular, evaluate
●
the development of direction for Barclaycard’s strategic alternatives (chapter 7 of Exploring Corporate
Strategy),
●
possible courses of action against the criteria of suitability, acceptability and feasibility (chapter 7 of
Exploring Corporate Strategy),
●
issues of synergy and parenting advantage (chapter 6 of Exploring Corporate Strategy).
3. LEARNING OBJECTIVES
The Barclaycard case study develops students’ understanding of how to identify, evaluate and rank possibilities for growth. In particular, the case study will illustrate the issue of how, despite growth in the number of participants and claims of increased competition, credit cards remain a remarkably profitable component in a bank’s portfolio.1 Also, it provides students with insights to forces altering competitive stalemate when competitors use credit cards as loss leaders while incumbents try to run for profit.
Specific goals include allowing students to:
●
develop a sensibility for the business environment of a sector with diminishing profitability margins; 1
“It would be foolish to suppose that a market that has become more competitive has necessarily become very competitive”,
John Vickers, Chairman, Office of Fair Trading, 27 February 2001.
This note was prepared by Bernardo Bátiz-Lazo (London South Bank University) and Nurdilek