Largest credit card issuer in the domestic market; strong competitor for corporate and co-branded credit cards with established relationships within airlines, gasoline and other industries; Parent company is well known in investment banking domestically and internationally; Has a capital to acquire more credit card portfolios domestically and abroad; Possesses a leading industry platform Paymentech for acquiring and servicing clients; Has chase.com site for serving online customers allowing them to check balance, online statements and pay bills electronically; In light of the situation on credit card market and considering abilities and constraints of CCS I recommend to simultaneously focus on two directions: international expansion and acquiring more corporate clients in both international and domestic markets. Case Study: Can DSS Help Master Card Master the Credit Card Business? As result of mergers and acquisitions activities Chase Credit Card Services (CCS) became fifth largest credit card issuer in the industry. Being a child of a highly reputable J.P. Morgan Chase bank the CCS has many competencies and competitive advantages in order to compete in already saturated credit card market. Case Study on Corporate Governance: Enron Scam, Case Study: Amazon's Competitive Advantage, Case Study: Google's Competitive Advantage.
Financial Services, Marketing, Risk Management, Client was a large global bank w/ ~6 Million card customers, Indus was tasked with overhauling valuations of the credit card business, We developed comprehensive application-level valuation model that predicted revenue & cost drivers at a granular level, Behavior-based customer segments were identified for each profit driver; Key month-over-month assumptions were developed for each driver, Model being used to evaluate new product decisions & perform macroeconomic scenario gaming. CCS also has to catch momentum on the market. Cons: Citibank may change its focus from international back to domestic expansion; lack of diversification through international exposure which could protect CCS from declines in US economy. Your email address will not be published. The data on past customer behavior was analyzed to score and profile customers. Territory alignment ensures equitable allocation of sa A recent study shows that 77% companies1believe their bottom line is affected by inaccurate and incomplete data, and on an average, 12% of revenue potential is wasted Accurate da With increased drug and market awareness among Health Care Practitioners (HCPs), pharma companies need to rethink their sales teams go-to-market strategy. 
last 6 months. Customer profiling and segmentation resulted in creating a set ofdifferentiated product offerings, leading to 20% increase in sales fortarget product lines. Evolvement of internet and technology, globalization, legislation and modernization of financial industry is giving new opportunities for expansion of the credit card business. We developed application level credit card LTV model for a leading bank and used LTV model to overhaul decision & line policy and evaluate new products. The trends of consolidation and technological advance in the credit card segment require CCS to decide the geographical scope it should expand the business. Each case study highlights a different set of capabilities and services. However, the industry is consolidating much faster that Citibank alone can absorb. The revenue in this business is mainly derived from fee income and this reduces a reliance on interest rates. 
So CCS could leverage this brand name recognition on other countries to acquire new customers. 
Want to read all 2 pages? Copyright 2022 Axtria. Key customer segments were created as a basis for product differentiation and mapping, Maximized Drug Launch Sales Through Effective Territory Alignment For A Biopharmaceutical Company, Empowering The Sales Force With Fast And Accurate Insights, Driving Sales Efficiency Across Digital And Traditional Channels Through Multi-Channel Call Planning, Incentive Compensation Planning & Administration, Health Economics & Outcomes Research (HEOR), Business Intelligence & Data Visualization, Sales Management - Sales Force Optimization, Advanced Analytics For Trials Optimization, Artificial Intelligence (AI)/Machine Learning (ML). It needs to pay attention not only on the external activities but also on its internal relations with the top management who may consider selling off CCS. Due to tremendous potential of the internet and technology CCS has lots of opportunities for internal growth on domestic markets. Axtrias solutions and services are tailored for each clients specific needs and goals. CREDIT CARD - SEGMENTATION CASE STUDY.pdf - CASE STUDY CREDIT CARD SEGMENTATION Website: www.analytixlabs.co.in Email: 1 out of 1 people found this document helpful, This material is protected under copyright act AnalytixLabs, 2011-2015. CART-RF-ANN An Insurance firm providing tour insurance is facing higher claim frequency. One of the CCS most important goals is to create a one stop shop for financial services by leveraging a whole power of the financial giant which would allow it to become an integrative part of its core business and acquire a great market share of domestic and international credit card markets. Recovery of cost from Governmentwide Commercial. This preview shows page 1 - 2 out of 2 pages. You are assigned the task to make a model, Clustering A leading bank wants to develop a customer segmentation to give promotional offers to its customers. Course Hero member to access this document, San Francisco State University JOUR 300, The University of Newcastle MARKETING 456, HW0188 Student Course Book 2020 - 220720(1).pdf, HW0205 Acad Comm Humanties Course Guide.pdf, AllLife Bank Customer Segmentation - Problem Statement.docx, University of California, Berkeley COMPSCI MISC, Nanyang Technological University NTC 0188, Nanyang Technological University NTC MISC, Delhi Public School, R.K. Puram MATHS DPS034. To learn about Axtrias complete set of capabilities and what our solutions and services can do explicitly for you, please contact us. Cons: lack of international commercial banking presence; lack of international infrastructure for servicing; dominant position of Citibank. A sophisticated player in the credit card space wanted to increase use of data insights for product differentiation to increase sales. Although CCS does not have an appropriate infrastructure to service credit card customers abroad it has a capital to acquire international portfolios along with the required technology and infrastructure. Case Study of GUCCI: Transformation of Luxury Branding, Case Study: Turbulent History of Chrysler Corporation, Business Ethics Case Study: The Volkswagen Emissions Scandal, Case Study of Nike: Building a Global Brand Image, Case Study: Corporate Social Responsibility of Starbucks, Case Study on Marketing Strategy: Starbucks Entry to China, Case Study: How Netflix Took Down Blockbuster, Business Ethics Case Study: Caterpillar Tax Fraud Scandal, Case Study: Corporate Merger Between Volkswagen and Porsche. Pros: market is very large; various sources of income (interest charges, late and administrative fees, annual fees); many channels to offer cards (co-branding, affinity and agent banking); Cons: extremely intense competition; lack of brand loyalty; dependence on interest rates; loss on defaulted loans; low switching costs; many other payment alternatives; Pros: many portfolios are up for sale and CCS has a required capital; good technology for acquiring and servicing domestic clients is already in place; strong commercial banking presence would help to acquire loyal customers; the strongest competitor Citibank is more focused on international expansion; most large domestic corporations already have relationship with J.P. Morgan Chase; no need to compete with foreign banks who have good relationships with foreign corporations that could limit CCS abroad. Your email address will not be published. How Does Enterprise Computing Support BusinessOrganizations? Getting Your Degree in Business Management, The Importance of the Conceptual Framework for Accounting, Cost Planning Systems in Construction Management, Exploring the Potential Future of Cryptocurrency, Role of Strategic Management in the Survival of Organizations, Advantages and Disadvantages of Sales Force Automation (SFA), Case Study: Siebels Solution for Tata Motors, Meaning of Sampling and Steps in Sampling Process, Decision Making Units (DMUs) in Industrial Marketing. End of preview. How A Personal Loan Helps Save You Money? The, sample dataset summarizes the usage behavior of about 9000 active credit card holders during the. Course Hero is not sponsored or endorsed by any college or university. The only competitor of CCS in international business is Citibank which has a dominant position. Required fields are marked *. Due to all these consolidations domestically and internationally, availability of the required capital, strong name recognition of the parent and industry leading technological platform CCS has all it is required to have a great success in all these markets. Any violation of this, This case requires trainees to develop a customer segmentation to define marketing strategy. World s busiest airports by passenger traffic. CCS reached a critical point when it is equipped with the right instruments and now needs to demonstrate that it is able to leverage them the most optimal way to maximize its profit and prove to its parent investment banking company that it still deserves to be a part of Chase core business. They have been advised by their marketing research teamr that the penetration in the market can, Prior to certifying the Managing Accounting Billing Statement for contract payments by Governmentwide Commercial Purchase Card, the Approving/ Billing Official must do what two things? The consolidation trends are intense in domestic market as well. A go-to-market plan is at the center of a drug launch. Many commercial banks exit credit card business and put their portfolios up for sale. All rights reserved. Pros: provides a good international diversification; strong international presence in investment banking sector would facilitate acquiring new customers; CCS able to compete for international individual and corporate clients as well; Only Amex and Citibank have greater name recognition worldwide, but Amex is more focused on charge card market while rapid consolidation allows CCS to participate in consolidation along with Citibank; International presence can be significantly leveraged in the future. Axtria's propreitory algorithms helped segment customers on credit card usage habits, risk profile, purchasing habits etc. document.getElementById( "ak_js_1" ).setAttribute( "value", ( new Date() ).getTime() ); This site uses Akismet to reduce spam. It is very important to act fast in these both directions. Online shopping and other activities require introduction of easy, secured and reliable payment methods and fast access to short-term credit. Unauthorized, use and/ or duplication of this material or any part of this material including data, in any form, without explicit and written permission from AnalytixLabs is strictly prohibited. They collected a sample that, Background: AllLife Bank wants to focus on its credit card customer base in the next nancial year. CCS has just 24 months in order to demonstrate to top management its high profitability and prove their right to exist as a part of the JP Morgan Chase. CCS has a needed capital to acquire these portfolios as well as a leading infrastructure already in place to service them.
MBA Knowledge Base 2021 All Rights Reserved, Case Study of J.P. Morgan Chase : The Credit Card Segment of the Financial Services Industry, Case Study: Citibank "Live Richly" Ad Campaign, Case Study: Walt Disney's Business Strategies, Case Study: Credit Card Attitudes and Behaviors of College Students, Case Study: The Rise and Fall of Nintendo Wii, Case Study: Success of Starbucks Mobile Payment Application. Effective territory management is core to achieving launch excellence. All Rights Reserved.Axtria Cookie Policy & Privacy Statement. This sector is growing and profitable segment of CCS which has a potential for even more growth especially in corporate card market. Although this market is dominated by American Express the CCS has recently acquired Paymentech business with its industry leading platform for acquiring and servicing corporate credit cards. Cons: sector is dominated by American Express; more sales efforts should be done to acquire new clients (direct mail, advertisements, etc would not work). Customer attributes and characteristics were scored via predictive analytics and decision variables to create optimized and differentiated product offerings for each segment. It should create a kind of value chain within the bank which would show to top management that every time investment banking gets a new client the potential revenue for the same client can be significantly increased due to cross-sale of credit card service. They collected a sample that summarizes the activities of users during the past few, what are the Eda to be done for the same Problem 1: Clustering A leading bank wants to develop a customer segmentation to give promotional offers to its customers. Despite of intense competition among the banks to acquire and retain profitable customers this market still has a great potential for the right players. The file is at a customer level with 18 behavioral variables. Copyright 2022 Indusinsights. The management decides to collect data from the past few years. Review and, According to 10 United States Code 2784, which two of the following could result from a Governmentwide Commercial Purchase Card Program violation? Learn how your comment data is processed. So if CCS starts competing for international portfolios it can participate with Citibank in absorbing this consolidation.
Pros: still has good growth prospects; has a higher entry barrier since acquiring new corporate clients is more based on very strong reputation of the issuer; requires a special technology for servicing; does not depend on interest rates as revenue is coming from fee income; payment on charges is guaranteed by corporations so no loan losses. J.P. Morgan Chase did not have an international presence of its commercial banking but it did have a strong international presence of its investment banking sector. CCSs president explicitly stated that this is a strategic growth area for the business. Home Management Case Studies Case Study of J.P. Morgan Chase : The Credit Card Segment of the Financial Services Industry. The CCS management has to activate economies of scope leveraging brand name of investment banking parent in obtaining corporate clients domestically and expanding all types of activities internationally. There was a lack of understanding around customer characteristics leading to inappropriate product matching. In addition to that the corporations guarantee payments on charges made by their employees that eliminate a problem of loan losses.