E business strategy of capital one

8/11/2019 E business strategy of capital one

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E-BUSINESS STRATEGY OF

CAPITAL ONE


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CAPITAL ONECASE FACTS

Capital One Financial corporation was established in 1995

Offers Credit Card, Banking and Insurance products

Currently the 9thlargest retail banking player in the US

Operates in US, UK and Canada

Extensively uses IT and Information systems in its operations

Creates value to customers using E-Business Strategy

Case Revolves around how Capital One creates value to customersand IS


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STRATEGY AND ROLE OF E-BUSINESSIT?

Corporate strategy defines the future directions and actions oforganization

E-business refers to application of electronic communication iorganization

E-Business Strategy defines the impact of technology and elecommunication on corporate strategy


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FORMS OF ORGANIZATIONAL STRATEG

Corpora

teStrategy

BU Strategy

RegionalStrategy

FunctionalStrategy

Where

Bus

Stra

genera


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CAPITAL ONEE-BUSINESS STRATEG

Uses Information Based Strategy

Heavily dependent on IT and IS

Unifies Marketing, Credit, Risk, Operations and IT

Helps in understanding customer needs and preferences bette Uses IS to provide Tailor-made financial products based on cu

needs

Different prices to different customers based on their risk statu


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MCFARLANSSTRATEGIC GRID

Factory STRATEGIC

Support Turnaround

Capital One

Impactof

ITonOperations

Impact of IT on Strategy


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IMPLICATIONS OF E-BUSINESS STRATE

E-Business strategy should be clearly defined. Otherwise it may

:

Improper or insufficient attention to E-Business initiatives.

Inappropriate direction of E-Business strategy

Limited integration of E-Business and information asymmetry

Resource wastage through functional duplication of modules


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RELATION BETWEEN E-BUSINESS ANDOTHER STRATEGIESCORPORAT

E

STRATEGY

E-Business

Strategy

SCM

Strategy

Marketing

Strategy

IS

Strategy

Constraints and Opportunities

SupplySide

CustomerSide


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ADVANTAGES OF E-BUSINESS TO CAPONE

Communicate benefits through electronic channel

Prioritize audiences or partners for e-channel adoption

Prioritize products sold or purchased through e-channels

Manager dashboard and analytics


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DYNAMIC BUSINESS MODEL OF CAPIONE

KnowledgeBuilding and

CapabilityEvaluation

E-BusinessDesign and

Business Goals

E-BusinessBlueprint

Application

developmentand

deployment


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INTERNAL CAPABILITIES VS EXTERNFORCES

MarketDriving

Strategy

MarketDriven

Strategy

StatusQuo

CapabilityBuilding


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VISION AND OBJECTIVE

Vision andObjectives

BusinessScope

ValueCoreCompetencies


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MISSION STATEMENTS

Amazon.com Our vision is o be earths most customer centric company, toplace where customer can come to find and discover anything they might w

buy online.

Dell Dell listens to customers and delivers innovative technology and servtrust and value.

Google Googles mission is to organize the worlds information and make universally accessible and useful.

Capital One Our brand is premised on empowering our customers with infchoice, great value and excellent service.


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HOW CAPITAL ONE USED E-BUSINESS TO CREATE BUSINESS

VALUE ?


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THANK YOU !

E business strategy of capital one

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