IV. Strategy formulation Business-level strategy Capital One used to be the credit card department of Signet Bank of Virginia. Since then, it has constantly sought technological innovation and adopt information-based strategy. Capital One focused on credit card business, auto loan and investing activities for many years and has become one of the largest banks in United States after acquiring Chevy Chase bank. By the end of September 2017, the assets of Capital One has exceeded 300 billion US dollars, ranking the 500 largest fortune in the world (121). How did capital one turn from an obscure small company to one of the largest banks in United States? This is mainly due to the information-based strategy adopted by Capital One. The main direction of information-based strategy is data analysis, it is the indispensable key for capital one to become successful from a small company. The main purpose of information-based strategy is to control risks and design different financial products to different customer group. Capital One has explained their strategy on the official website, since Capital One Company founding in 1988, the company has firmly believed that the core competency of the bank is the ability to deal with financial data so that …show more content…
The credit industries have been perfected in the United States, and credit cards have been popularized. The industry has entered a mature stage, and the growth rate has slowed down. Large credit card issuing banks have taken up the market and already have great advantage of brand image. However, the founders of Capital One saw the opportunity. During that period, most of the credit card products in the financial market were almost same or similar, and most credit card companies implemented a unified interest rate standard. In that case, the profitability of each customer varies widely. The customer's differential demand has not been