capital one info sys - Max Spinner Section FP02 1. Capital...

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Max Spinner Section FP02 1. Capital One, a bank holding company, has a unique strategy that has helped the company to be very successful. The company uses what founders Rich Fairbank and Nigel Morris refer to as an information-based strategy (IBS). They define an IBS as “the use of scientific testing to drive mass customization, enabling them to deliver ‘the right product to the right customer, at the right time and at the right price.’” These men believe their IBS is the true source of their strength. The information based strategy allows Rich and Nigel allows them to obtain customers based on a profitability analysis. This allows the bank to only accept the customers that will make them the most money. The information-based strategy is also successful because of employees. Capital One makes sure their employees are driven and appropriate for the job. 2. The information-based strategy was difficult to sell. 16 banks rejected Rich and Nigel before Signet Bank accepted “The Great Idea.” One of the reasons that this idea was so commonly rejected is simply that many banks thought that the idea would fail. For instance, fourteen of the top twenty-five US banks though that the idea was too
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This note was uploaded on 09/23/2010 for the course BMGT 381 taught by Professor Dawson during the Spring '10 term at University of Maryland Baltimore.

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capital one info sys - Max Spinner Section FP02 1. Capital...

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