Capital One Case Study Essay

1. What is adding capital Ones business and who be their competitors? hood Ones business deals with a bank financial servicing company. They specialize specifically in banking, credit cards, home loans, auto loans and savings products. Capital One was founded by Richard Fairbank and Nigel Morris in 1988. Fairbank extremely foc apply on the marketing and customization of credit card practice and information. The company is very analytical and is very technological when gathering entropy information. They were basically specify together centering around the idea of engineering science within the company itself. Some of their direct competitors would be against Bank Of America, American Express and Barclays bank. 2. What is their scheme to grow profitably and compete? Give examples.Capital One was put together with applied science right at the core of their business. This defys them different from their competitors since most other companies had a business model first before technology was every involved. The technological part of their company is very important since they use it to analyze and prod their customers characteristics such as credit risk. This is basically their elan of improving customer service and to increase profitability. Fairbank developed a data machine that was able to recover a customer risk factor from each product as well as detect fraud. At Capital Ones stay of inception, the online communication was making its way in our society so the company focused on highly internet marketing. This strategic action lead to 2.5 millions customers write up as this online banking systems was the new and improved way to make payments.3. How do they use information to implement their strategy? What kinds of information do they use and where does it accrue from?They vastly use their information system and technology to help during day to day activities. Their main use of this information is to analyze customerdata and make appropriate sugge stions and choices regarding their marketing strategy. They implement many tests and have used their idea of diving 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 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 base to make decisions and access which one of them will be able to pay them back afterward a loan. One of the ways capital one has access this information is through the post offices file and other checking agencies as well. Capital one basically takes information from any pertinent source that can provide then with reliable data.4. List and describe the information technologies used to back up their strategy?Information-based strategy company focuses on high credit risklow credit risk this help s 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 involveData 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 databaseTrillium 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 traditional approach that a manufacturing company might use.Capital Ones scientific test was used with their softwa re 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 double-tongued activity as well. They grew every day and had millions of customer signed 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 being manufactured and engineered. Capital One way of working with this process involves having their marketers research and access the information and da ta 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 on. Everything is first manually done and analyzed in this case. The technology and use of software would be used later on in terms of Capital Ones informational strategies.