CUC International, Inc. Harvard Case Solution & Analysis

CUC International, Inc. case solution

CUC International, Inc.

Introduction:

CUC International Company was founded in 1973 as Comp-U-Card. The company is headquartered in Stamford. The primary business of the company was a membership based consumer services company and marketed its membership programs to credit cardholders of major financial, retailing, and oil companies, this include Chase Manhattan, Citibank, Years, JC Penney, and Amoco. CUC International Company went public in 1983 and was renamed CUC International in 1987. magazines' list of the fastest growing public companies in 1984 and 1986.

Business History:

Shopper Advantage:

Shopper Advantage service of CUC International, Inc. was introduced in 1951. Consumers paid an annual membership fee for this service, which entitled them to call the company’s operators on a toll-free line, or to use on-line computer access seven days a week to inquire about, price, and buy brand name products. Shoppers Advantage offered more than 250,000 brand names. Many customers use this service mainly for the price comparison not necessarily to purchase the items.

Travelers Advantage:

Travelers Advantage is the service of CUC International, Inc. initiated in 1988, this service provides subscribers access to the information and reservations on discount airline travel, hotels, auto rentals, tours and cruises.

Auto Advantage:

This service of CUC International, Inc. provide the valued information to the subscribers regarding the new car price, and performance summaries, information about used cars and their prices, and parts and service discount.

Premier Dining:
Premier dinning service was in traduced in 1989; this service offers subscribers two for one dinning at mid to upscale restaurants in major cities of U.S. Large marketing investments were made by the company to build memberships in these new programs..............

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