Capital One Competitor Analysis

Topics: Monopoly, Bank of America, MasterCard Pages: 2 (276 words) Published: April 17, 2012
A. Competitor Identification – Strategic Groups of Competitors a. Direct Competitors- other credit card companies
i. Chase - $165.87 B in revenue and 19% market share ii. Bank of America - $145.10 B in revenue and 16% market share iii. Citigroup - $102.54 B in revenue and 12% market share iv. Others such as American Express, Discover, etc

b. Indirect Competitors – companies such as retailers whose core competency is not credit cards v. Target - $7.78 B in revenue and 1% market share
vi. Others such as Best Buy, Macy’s, etc

B. Competitor Strengths and Weaknesses: Competitor Strength Grid

Scenario Analysis:
Two most likely are:
* Scenario 1: Recent acquisitions do not create added profits * Possible Strategies:
* Try to create stronger relationships with customers of the acquired companies who are unfamiliar with Capital One * Create incentives for customers to stay with Capital One after the acquisition * Reevaluate the way that business is managed

* Probability estimate:
* Since most of the acquisitions have been in similar lines of business they may work well but with the deep recession they may face problems: 60% * Scenario 2: Government proposes increased regulations on credit cards * Possible strategies:

* Invest in education to teach people to understand how credit cards work and how to use a credit card responsibly * Try to develop stronger ties with politicians to understand your position and make regulations hurt as little as possible * Develop a new product that isn’t affected by new regulations * Probability estimate:

* With credit being a significant cause of the recession, there will likely be more regulation on the industry. The party who wins control in 2012 will probably be the biggest impact on immediacy: 70%
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