The Key Environmental Forces That Have Immediate Strategic Implications for Capital One

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This researcher will Identify and describe the key environmental forces that have immediate strategic implications for Capital One. Identify and describe the capabilities and weaknesses within Capital One that have immediate strategic implications. Define Capital One's business-level and corporate-level strategies and evaluate each for their potential for continued success. Evaluate the strategic fit of Capital One's recent acquisitions. Describe the key strategic issues raised by the company's acquisition strategy. Assess Capital One's international position. Identify and describe the key environmental forces that have immediate strategic implications for Capital One. Capital One Corporation is a Bank holding company. Capital One provides a wide array of financial services to the consumers. Capital One offers consumer and commercial Lending, consumer deposit products and Capital One Auto finance(Hitt, 2009). Since going public in 1994, Capital One has aggressively increased there market foot print in the global arena. Capital One has diversified its portfolio by adding mortgage, home equity loan, automobile financing and many other specialize consumer lending products. Capital One is well known for its customized credit cards. This was done with the support of its Information –Based strategy (Hitt, 2009). The system utilize sophisticated data mining techniques to match it credit cards with the targeted customers based on their credit scores. The IBS system would then divide the consumer into three categories depending on their FICO scores. The groups are super-prime (excellent credit history), prime (average credit history) and finally sub –prime (poor credit history). Capital One use this system aggressively in on boardi... ... middle of paper ... ...ortfolio offers diverse products and services to both domestic and international customers. “The international sub-segment consists of U.K. and Canada credit card lending, extending Capital One’s national scale lending Franchise and providing geographic diversification (Hitt, 2009). Capital One is dominant in the United Kingdom, where they are the seventh largest credit card issuer and among the top ten of the same in Canada (Hitt, 2009). Capital One international portfolio has grown and increased in value over the past years. In 2005 Capital One acquire a British equity brokerage firm called Hfs Group to strengthen its position in the United Kingdom (Hitt, 2009). The international firm competes with national and state banks for deposits and commercial loans. The firm is currently not expanding but will when they find a market that shows growth opportunities

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