Capital One Environmental Forces
This case study provides a brief overview on Capital One’s ability to sustain growth with its current strategy and existing market conditions. Capital One was founded in 1988 by Richard Fairbanks and Nigel Morris. Capital One Financial Corporation specializes in credit cards, home loans, auto loans, banking and savings products. In examining this case, the following questions will be addressed:
1. Identify and describe the key environmental forces that have immediate strategic implications for Capital one.
When a company’s leadership plans for the future, it must take into account key environmental forces/factors. The ability to compete will be affected by how well management has learned to identify those factors and being able to …show more content…
Therefore, a business must be able to leverage their marketing and product line(s) to satisfy consumer demand. Capital One has learned to change with their customers and have targeted products to each type of customer (super-prime, prime and sub-prime). Capital One has differentiated themselves by creating products that have been perceived as unique and attractive. For example, consumers are familiar with their slogan - What’s in your wallet? – and the perception of not having a Capital One card in your wallet has helped Capital One to be the leader in the …show more content…
5. Describe the key strategic issues raised by the company’s acquisition strategy.
Although acquisitions may be beneficial, there are downsides that must be considered. Each company is unique and the acquiring organization must learn the must learn their strengths, weaknesses and operations. This, however, is not always that case. Companies tend to overpay for the transfer of data, improperly finance or don 't properly gauge the managerial or human resource capabilities of the target company.
In order for an acquisition to work, the acquiring company must have a good understanding of how the target company has operated and how it operates currently. Instead of taking over and changing everything, the strategies of the acquiring company should be integrated slowly for a smooth transition. More importantly, acquisitions structured by Capital One have provided them with access to bank deposits that could be used to reduce its reliance on the capital markets for
1. Identify and describe the key environmental forces that have immediate strategic implications for Capital one.
When a company’s leadership plans for the future, it must take into account key environmental forces/factors. The ability to compete will be affected by how well management has learned to identify those factors and being able to …show more content…
Therefore, a business must be able to leverage their marketing and product line(s) to satisfy consumer demand. Capital One has learned to change with their customers and have targeted products to each type of customer (super-prime, prime and sub-prime). Capital One has differentiated themselves by creating products that have been perceived as unique and attractive. For example, consumers are familiar with their slogan - What’s in your wallet? – and the perception of not having a Capital One card in your wallet has helped Capital One to be the leader in the …show more content…
5. Describe the key strategic issues raised by the company’s acquisition strategy.
Although acquisitions may be beneficial, there are downsides that must be considered. Each company is unique and the acquiring organization must learn the must learn their strengths, weaknesses and operations. This, however, is not always that case. Companies tend to overpay for the transfer of data, improperly finance or don 't properly gauge the managerial or human resource capabilities of the target company.
In order for an acquisition to work, the acquiring company must have a good understanding of how the target company has operated and how it operates currently. Instead of taking over and changing everything, the strategies of the acquiring company should be integrated slowly for a smooth transition. More importantly, acquisitions structured by Capital One have provided them with access to bank deposits that could be used to reduce its reliance on the capital markets for