Capital One Case Study

Good Essays
Capital One Case Study

Read the Capital One Case materials. 1. What is Capital One’s business and who are their competitors?

Capital One's business deals with a bank financial servicing company. They specialize specifically in banking, credit cards, home loans, auto loans and savings products. Capital One was founded by Richard Fairbank and Nigel Morris in 1988. Fairbank highly focused on the marketing and customization of credit card use and information. The company is very analytical and is very technological when gathering data information. They were basically put together centering around the idea of technology within the company itself. Some of their direct competitors would be against Bank Of America, American Express and Barclay’s bank.
2. What is their strategy to grow profitably and compete? Give examples.

Capital One was put together with technology right at the core of their business. This makes them different from their competitors since most other companies had a business model first before technology was every involved. The technological part of their company is very important since they use it to analyze and comprehend their customers characteristics such as credit risk. This is basically their way of improving customer service and to increase profitability. Fairbank developed a data machine that was able to access a customer risk factor from each product as well as detect fraud. At Capital One's point of inception, the online communication was making its way in our society so the company focused on highly internet marketing. This strategic action lead to 2.5 millions customers signing up as this online banking systems was the new and improved way to make payments. 3. How do they use information to implement their strategy? What kinds of information do they use and where does it come from?

They vastly use their information system and technology to help during day to day activities. Their main use of this information is to

You May Also Find These Documents Helpful

  • Powerful Essays

    Capital One Case Study

    • 4764 Words
    • 17 Pages

    consumer lending, a major part of the asset side of banking, is all flowing toward national consolidators like Capital One. -RICHARD D. FAIRBANK, CEO AND CHAIRMAN, CAPITAL ONE FINANCIAL CORPORATION ' United Kingdom, the Hfs Group, to strengthen its Global Financial services (GFS) subsidiary in the British market. As of April 2005, it possessed sufficient liquidity ($21 billion) and capital ($9.2 billion)4 to enable its famous brand to expand into new markets and seize the right opportunities for…

    • 4764 Words
    • 17 Pages
    Powerful Essays
  • Powerful Essays

    Capital One Case Study

    • 1239 Words
    • 7 Pages

    The Case Interview • What is a case interview? The Case Interview • What specific skills does it assess? • How to prepare for a case interview? • An interactive example. What is a “Case Interview” anyway? The Case Interview Simulation of a business problem. Similar to what our associates encounter every day. Series of open-ended questions. They’re designed to stimulate your conceptual, quantitative, analytical and – most importantly – creative abilities. The Case Interview There are…

    • 1239 Words
    • 7 Pages
    Powerful Essays
  • Good Essays

    Capital One Case

    • 553 Words
    • 2 Pages

    1. What is Capital One’s business and who are their competitors? Capital One is a financial services company, whose banking and non-banking subsidiaries market a variety of financial products and services. The Company operates in Credit Card, Commercial Banking and Consumer Banking segments. It issues credit cards, loans, banking and savings products, while determining rates to charge, and which customers are risky. Its competitors consist of banks, investment banks, and other credit card companies…

    • 553 Words
    • 2 Pages
    Good Essays
  • Satisfactory Essays

    Capital One

    • 406 Words
    • 2 Pages

    Capital One BAD 453 October 30 2012 Case study 5.1 Prepared to: Mr. Nazih El Jor Prepared by: Ghaith Bou louz Capital One is on a daily mission to improve its services. It was founded on the belief that ‘the power of information, technology and testing could be harnessed to bring highly customized financial products directly to consumers’. It surely have gained…

    • 406 Words
    • 2 Pages
    Satisfactory Essays
  • Good Essays

    Capital One

    • 1070 Words
    • 5 Pages

    Capital One Financial Corporation 1. How is Capital One’s use of IT different from other mass customization strategies? Capital One uses IT through its information-based strategy (IBS) to “record, organize, and analyze data on the characteristics and behaviors of their customers,” as stated by CEO Richard Fairbank. Their philosophy was to exploit information by constructing scientific models that could be used to both assess the creditworthiness of potential cardholders through…

    • 1070 Words
    • 5 Pages
    Good Essays
  • Good Essays

    Capital Budgeting Case StudyQRB/501April 8, 2014Capital Budgeting Case StudyThere are at least six capital budgeting tools a firm can use in analyzing a capital expenditure. They are: net present value (NPV), internal rate of return (IRR), profitability index (PI), payback period (PB), discounted payback period (DRP), and modified internal rate of return (MIRR). This case study will focus mainly on NPV and IRR, in addition to the remaining four capital budgeting tools. Net Present Value (NPV) The…

    • 708 Words
    • 2 Pages
    Good Essays
  • Good Essays

    Case Study One

    • 673 Words
    • 3 Pages

    Case Study One: Flat Panel Televisions and the Global Economy They begin as glass panels that are manufactured in high-technology fabrication centers in South Korea, Taiwan, and Japan. Operating sophisticated tooling in environments that must be kept absolutely clean, these factories produce sheets of glass twice as large as king size beds to exacting specifications. From there, the glass panels travel to Mexican plants located alongside the U.S. border. There they are cut to size, combined…

    • 673 Words
    • 3 Pages
    Good Essays
  • Satisfactory Essays

    Hittle Company Ltd (Case Study) You are a financial analyst for the Hittle Company. The director of capital budgeting has asked you to analyze two proposed capital investments, project X and Y. Each project has a cost of $10000 and the cost of capital for each project is 12 percent. The projects expected net cash flows are as follows: |Expected Cash flows | | | | | |year…

    • 1029 Words
    • 5 Pages
    Satisfactory Essays
  • Good Essays

    Case Study One

    • 520 Words
    • 3 Pages

    1) If you were one of the board members, how would you have initially voted for the proposal? What would your vote be after the recess in the meeting? Why? At first hand, I would be one of the ten board members that voted for the development of the plant. After reviewing the new point given at the recess, I would surely disagree with the use of the new plant. That would have a great impact in the number of many lives, and overall with a city that had experience a huge loss when the plant first…

    • 520 Words
    • 3 Pages
    Good Essays
  • Good Essays

    Estimate the required net working capital for each year and the cash flow due to investments in net working capital. The firm needs to increase its net working capital by 12% of incremental sales revenues. This amount is needed in the year before the sales revenue is earned. The amount for year 0 is 12% x $250,000 = $30,000.00, and that for year 1, 2, and 3 are $30,900.00, $31,827.00, and $32,781.81 respectively. The cash flow due to the changes in the working capital is shown in Table 2. Year 0 1 2…

    • 1525 Words
    • 7 Pages
    Good Essays