Subject category:
Strategy and General Management
Published by:
IBS Case Development Center
Length: 9 pages
Data source: Published sources
Topics:
Capital One Financial Corporation; Consumer lending services; Motor vehicle financing; Mortgage and home equity loans European; Market leader and market share; Brand positioning; Credit card industry; Diversification strategy; Super-prime, prime and sub-prime customers; Information-based strategy (IBS); Bad debt and charge-off; Financial portfolio and sourcing of funds; Origination of loans; Competitive advantage; Investment banking and insurance
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Abstract
Capital One has been making several acquisitions in 2004 and 2005 to strengthen its position in motor vehicle financing, mortgage and home equity loan services. Its latest acquisition of Hibernia National Bank in early March 2005 has provided it with an opportunity to expand into the developing markets of Texas and Louisiana (USA) apart from enabling it to access a cheaper source of funding for its flagship business of selling credit cards. The case focuses on Capital One''s diversification strategy and the reasons behind its various acquisitions. It also deals with the challenges it faces in the second decade of its establishment. Finally, the case takes a look at the credit card industry in the US, which is going through a phase of consolidation.
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Abstract
Capital One has been making several acquisitions in 2004 and 2005 to strengthen its position in motor vehicle financing, mortgage and home equity loan services. Its latest acquisition of Hibernia National Bank in early March 2005 has provided it with an opportunity to expand into the developing markets of Texas and Louisiana (USA) apart from enabling it to access a cheaper source of funding for its flagship business of selling credit cards. The case focuses on Capital One''s diversification strategy and the reasons behind its various acquisitions. It also deals with the challenges it faces in the second decade of its establishment. Finally, the case takes a look at the credit card industry in the US, which is going through a phase of consolidation.