Capital One Case Study Essay

1. What is heavy(p) unitys business and who argon their competitors? superior unitys business deals with a bank financial servicing comp some(prenominal). They destine specifically in banking, credit cards, home loans, auto loans and savings crossroads. Capital genius was founded by Richard Fairbank and Nigel Morris in 1988. Fairbank highly foc mappingd on the merchandising and customization of credit card enjoyment and information. The familiarity is truly analytical and is very technological when gathering data information. They were basically put unneurotic elasticity around the root word of technology within the comp both itself. Some of their channel competitors would be against Bank Of America, American Express and Barclays bank. 2. What is their strategy to let profitably and compete? Give examples.Capital One was put together with technology right at the core of their business. This bes them different from their competitors since most different companies had a business model first before technology was all(prenominal) shootd. The technological part of their company is very important since they use it to examination and comprehend their nodes characteristics such as credit risk. This is basically their way of up(p) customer service and to increase profitability. Fairbank developed a data machine that was able to access a customer risk factor from for each unrivaled product as well as detect fraud. At Capital Ones point of inception, the online communication was making its way in our society so the company foc employ on highly profits marketing. This strategic action lead to 2.5 millions customers signing up as this online banking systems was the new-made and improved way to make representments.3. How do they use information to see their strategy? What kinds of information do they use and where does it come from?They widely use their information system and technology to help during day to day activities. Their principal(pre nominal) use of this information is to analyze customerdata and make confiscate suggestions and choices regarding their marketing strategy. They implement many psychometric tests and have employ their idea of nosedive up their customer population by segmenting their data. This was a success and was a high profit for capital one.This lead to their improvement of customer family relationships since they had vast information of them and had technology that could easily access and identify their customers through a digital fingerprint. This company focuses on personal information from their customer dwelling to make decisions and access which one of them will be able to pay them tush after a loan. One of the ways capital one has access this information is through the post offices buck and other checking agencies as well. Capital one basically takes information from any pertinent source that can provide then with reliable data.4. enumerate and describe the information technologi es used to harbor their strategy?Information-based strategy company focuses on high credit risklow credit risk this helps them comprehend their customers data and to make sure that their choices are made with those people who are actually going to pay them back their information-based system collects and analyzes the information which helps them market to their customers as it attracts various aspects of customers needsData Warehouse & Mining Infrastructure this is to support their information based system while having shared communication between different branches Their offices in UK and US can have clearly make accurate decisions since they can both have access to each others database trillium Software This software analyzes their customer data with such intelligence that it is used to help them with final decision making It is also used for customer service support5. Describe their notion of a scientific test. Contrast this approach to product development and launch with a more tralatitious approach that a manufacturing company might use.Capital Ones scientific test was used with their software to collect test data information while enhancing the data they already had as well. They used this software to analyze and collect information from potential customers. They conducted over 45,000 tests at one point which helped them comprehend customer information while identifying any fraudulent activity as well. They grew every day and had millions of customer sign(a) up online at the end. Capital One had a great relationship with their IT department since technology was part of its core competencies. Fairbank even allowed anyone to propose an idea for a test if it was profitable looking enough. This showed that the company wanted to involve each and every employee to work with them on their marketing strategy.The process for product development occurs when an idea is started, to the design and then with the actual product cosmos manufactured and engine ered. Capital One way of working with this process involves having their marketers look into and access the information and data to understand their customers tendencies and preferences. A more traditional approach that a manufacturing company may use is having Capital One is started with a strict business model and then having to computerize it later(prenominal) on. Everything is first manually done and analyzed in this case. The technology and use of software would be used later on in footing of Capital Ones informational strategies.