Free Essay

Global Management

In: Business and Management

Submitted By Jigsel
Words 560
Pages 3
Name - Aeint Myat Noe Zaw ID – 5608000051

1. The competitive strategy that the credit card companies are pursuing is product differentiation and customer and supplier intimacy. In product differentiation, we make use of information system (IS) in order to create new product and services at the lower cost. According to the case, the credit card companies are making use of the data to track down various buying habits and create new services in terms of promotions. The use of information system (IS) makes the credit card company track down these habits more accurately. In customer and supplier intimacy, by using information system (IS), credit card companies collect data every time a cardholder makes a purchase. This allows the company to get to know its customers at a glance. By recording and tracking all of the credit cardholder’s purchases, the company is better equipped to learn its user’s behavior and having this information can help the company with factors such as future promotions for additional products or guard against credit card fraud and identify theft. Information system (IS) supports this strategy by allowing the credit card companies to collect process and store this data. In a way that it will be to use and access by employees. It also helps to keep track of their records and allows them to spot and react faster to discrepancies.

2. The business benefits of analyzing customer purchase data and construction behavioral profiles are that a business owner can get to know your customers. With the information that is collected, a business person can learn the habits, likes and dislikes, preferences and behavior its customers. The credit card company store the customer’s information in the repository and with the use of the data mining and other business intelligence, the company can find the hidden patterns such as what are the buying habits of the customers, what is the payment habit of the customer. Customer analysis of the information in the database can also be a possible inability to repay debt and to evaluate the purchasing power of different customers. Credit card companies can use the important information for these customers to credit card application rejected or reduce customers can use the scope of the money.

3. The practices by credit card companies are sometimes unethical. I believe that the kind of behavior in more convenient but some immoral. Because the cardholder will have the feeling of privacy violation. There is no doubt that credit card were, ad to some extent, still are employing tricks and traps that are clearly unethical. These practices damaged individuals and society as a whole, yet they were going to continue as long as the law permitted them. Yes, they are an invasion of privacy. Everything the customers want to buy will be monitored, seem. It also use to show the customer’s good or bad affect the willingness to lend money.

4. The 5 Forces of Credit Card Company

Traditional Competitors – High, there are a lot of Credit Card Company in the market.
New Market Entrants – Low, huge amount of money and need capital and also business license. Substitute Products – High, there are a lot of money transfer with cash and pay pal.
Bargaining of Customer – High, there are many banks as the customer can choose.
Bargaining of Supplier – Low, Credit Card Company needs a lot of money to build.…...

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