capital one - 1 Identify and describe the key environmental...

Info icon This preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
1. Identify and describe the key environmental forces that have immediate strategic implications for Capital one. When a company’s leadership plans for the future, it must take into account key environmental forces/factors. The ability to compete will be affected by how well management has learned to identify those factors and being able to estimate the extent of each of the factor’s impact on their corporate strategy. Of the five environmental factors identified by Pearce and Robinson (2002), the following will have an immediate impact with Capital One’s corporate strategy: Competitors: Every business has external peers (competition) that perform similar functions within their market. These peers are rivals producers of goods and/or services. Competition is good from a market perspective as it gives consumers choices and provides businesses opportunities to create a niche. Currently, Capital One’s main competitors are American Express, Bank of America and Discover Card. Capital One should learn and understand each of their competitors’ weaknesses and use it within their corporate strategy. Customers: Customers are an essential part of any business and without the customer there would be no need for the business. Therefore, a business must be able to leverage their marketing and product line(s) to satisfy consumer demand. Capital One has learned to change with their customers and have targeted products to each type of customer (super-prime, prime and sub-prime). Capital One has differentiated themselves by creating products that have been perceived as unique and attractive. For example, consumers are familiar with their slogan - What’s in your wallet? – and the perception of not having a Capital One card in your wallet has helped Capital One to be the leader in the industry.
Image of page 1

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern