Capital One: An analysis
Summary :
Table of Contents
- Introduction
- Critically evaluation of the business model and the information based strategy
- An evaluation of Capital One's approaches to customer retention and customer termination
- Capital One's approach to internal marketing
- Evaluation of elements of the service profit chain
- Conclusion
- References & Bibliography
Abstract
capital one's business model recognizes that each customer requires a different product and service benefits from a credit card provider, and acknowledges that if customers are offered what they want and need as opposed to what banks want to offer them, they will choose the provider that gives them choice and individuality. According to Egan (2001), a business model is a method of doing business and how it is sustained. In the case of capital one, its business is sustained with the help of its information-based strategy (IBS). In other words, the business model of capital one is fundamentally built on its IBS - a strategy that enhances capital one's ability to better comprehend a customer's specific and unique credit risk and potential revenue profile (i.e. how to better manage its customer base), as well as enhancing its responsiveness in unraveling customer specific requirements (i.e. understanding what values customers seek from credit card providers), via the collection and analysis of customer data.
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