Capital One: Leveraging Information-Based Marketing Harvard Case Solution & Analysis

In November 1997, Richard D. Fairbank, Chairman and Chief Executive Officer of Capital One Financial Corporation, reflected on the success of the company since its initial public offering (IPO) in 1994. Success came primarily from one business: credit cards. Despite the phenomenal success of the company in the same market, Fairbank vision for the company is not limited to credit cards. He wanted to diversify to reduce their vulnerability to the Capital One consumer credit market saturation and decline. Fairbank also saw an opportunity to enhance Capital One's other markets. He saw, Capital One, not only as a credit card or financial services company, but rather as an information and marketing company. Because Capital One strategy would work well in other information-oriented industries, Fairbank idea is to focus on the development, data-rich industry - big enough to make a significant contribution to the growth trajectory of the company - and focus on products and marketing channels, where Capital One could leverage its capabilities in research trials and mass customization. Although studied for more than 50 opportunities for diversification, Capital One was not pursuing any, mainly because they are poor fit or not to use a Capital One's core competencies. Recent hire, Mike Rowan, and his team, however, had just finished a four-month investigation into the financing of auto industry. That was before Rowan and his team to decide whether to provide auto financing as the right opportunities to bring on information Capital One strategic opportunities. The team knew that if she recommended to go forward, it would have to put forward a plan that will address any questions or objections Fairbank. "Hide
by James Lattin, Michael Rierson Source: Stanford Graduate School of Business 26 pages. Publication Date: March 2, 2007. Prod. #: M316-PDF-ENG

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