Pricing for Profit: The UK Credit Card Industry in the Late 1980s (A) Harvard Case Solution & Analysis

Describes the credit card industry in the UK end of the 1980s, which was really three businesses: cashless business transactions for merchants, cashless business transactions for card holders, and credit for business card holders. At the time of the case, the overall yield decreased significantly. Value added analysis is used to determine that one of the three companies is unlikely to remain profitable (non-cash transactions for merchants). With this loss of profitability, so it felt like to limit losses in a single case, which has been loss-making (non-cash transactions for card holders). This last step is a problem in an interactive decision theory, in which players have different ideas about the game, and this perception, in turn, may have an influence on each other. "Hide
by Harborne W. Stuart Jr. Source: Harvard Business School 14 pages. Publication date: April 17, 1997. Prod. #: 897168-PDF-ENG

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Pricing for Profit: The UK Credit Card Industry in the Late 1980s (A)

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