Subject category:
Strategy and General Management
Published by:
IBS Research Center
Length: 14 pages
Data source: Published sources
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https://casecent.re/p/66730
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Abstract
MasterCard, the world''s second largest credit card association announced plans for its initial public offering (IPO) by early 2006. It faced stiff competition from the market leader Visa, and other rivals. The IPO was announced at a time when various lawsuits filed by its rivals and its merchants were ongoing. Also the US credit card industry was going through a wave of consolidation. The case describes the industry structure of the credit cards, the present organisation structure of MasterCard and the proposed one after the IPO. The case also describes the competitive landscape of the industry and the critical factors affecting it. The core of the case is the proposed IPO of MasterCard which is looked upon by analysts as a move by MasterCard to regain its dominance, insulate itself against the lawsuits and evolve with a new organisation structure.
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Abstract
MasterCard, the world''s second largest credit card association announced plans for its initial public offering (IPO) by early 2006. It faced stiff competition from the market leader Visa, and other rivals. The IPO was announced at a time when various lawsuits filed by its rivals and its merchants were ongoing. Also the US credit card industry was going through a wave of consolidation. The case describes the industry structure of the credit cards, the present organisation structure of MasterCard and the proposed one after the IPO. The case also describes the competitive landscape of the industry and the critical factors affecting it. The core of the case is the proposed IPO of MasterCard which is looked upon by analysts as a move by MasterCard to regain its dominance, insulate itself against the lawsuits and evolve with a new organisation structure.