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

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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. 2.
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capital one - 1. Identify and describe the key...

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