SWOT ANALYSIS -- BarclayCard
Brief summary of Recommendations
Barclaycard has been the first valerse in the UK for credit card providers. They have intensely used advertising as the primary method of getting customers using the message satisfaction to attract consumers to use their cards. However , recently many new entrants have entered the marketplace to drive competition up and minimize the value of every single Barclaycard credit cards. The following is a directory of recommendations that Barclaycard will need to implement to be competitive.
1 . Barclaycard may introduce charge cards that have a lower APR to compete with the newest entrants. 2 . To motivate spending Barclaycard can bring in incentive applications to promote spending. For example , they can stick to NovusВ® using a cash back software on spending. 3. Suppress consumers from using cash and a main approach to payment. 5. Be the first emocionar again and introduce additional programs that allow a consumer's lifestyle to be much easier. For example , they can start employing services where a consumer will pay with their cellular phones using the VENTOSEAR feature, or start emplacing smart card technology in retail outlets as this is seen as the next feasible trend later on. Introduce companies that enable consumers to acquire things aware of a touch of a button (internet credit cards e. g. one time use cards)
вЂўMarket leadership with a business of 34% in terms of bank cards issued, and 27% in transaction benefit. * вЂўLow cost creation, resulting from accrued experience because the first credit card issuer in the UK and economies of scale based on it excessive market share. * вЂўBrand status, the Barclaycard name was almost a generic term for mastercard and is widely recognized by buyers. * вЂўA well-established syndication network, through Barclays Lender, other banks and large selling organizations which in turn made the product offered to a wide range of customers. * вЂўIT capability, which in turn allowed Barclaycard to develop superior products through alliances including British Phone system and Cellnet. * вЂўStrong financial central source to opportunity into a fresh market together with the introduction of credit cards. вЂўSaw the opportunities available because credit cards as being a new approach to payments pertaining to goods and took good thing about it. Weaknesses
вЂўAnnual deal value every card is low to NatWest. 2.
вЂўBarclaycard being a credit card issuer was not foreign, limited to great britain. * вЂўNew credit card problems are susceptible to increased awful debt inside the Barclays Traditional bank. вЂўAs a brand new type of payment method Barclaycard must persuade critics that uses on this card can be reliable rather than susceptible to scam. Opportunities
вЂўSpending on credit and debit cards amounted to 43% of total full sales* вЂўOnly 54% of UK adults owned credit cards, allowing for improved market penetration* вЂўTechnological improvements and new products would increase security and flexibility of payment by plastic-type material systems* вЂўCompany branded playing cards and retail outlet cards presented access to a base of new users and the opportunity to develop loyalty based link. * вЂўShort term macroeconomic situation in britain was positive: real salary increasing, low inflation, and strong economic growth. 5. вЂўConvincing buyers to use charge cards at even more retail locations including these where they may have not typically used additional methods of obligations e. g. checks вЂўAllowing consumers to work with the ATM when they desire a short-term mortgage. Threats
вЂўNew entrants just like industrializing communities offering similar products. 2. вЂўLow apr cards available by fresh entrants. 5. вЂўCannibalization in the credit card marketplace by debit cards and digital purse (smart) cards. * вЂўIncreased availability of other forms of credit. 5.
вЂўIncreased chances for potential credit card fraud. 2. вЂўReliance about electronic sales and marketing communications, effect of an explanation in countrywide communications. 2. вЂўIdentity robbery
Analysis of SWOT
The strengths of...
Bibliography: 1 ) LaBarge, Andrea. Pearson: Custom made Course Bunch, Boston, Massachusetts: Pearson Custom made Publishing, 2002.
2 . Wheelen, Thomas D. Concepts in Strategic Management and Organization Policy, 8th ed. Higher Saddle Lake, New Jersey: Pearson Education, Inc., 2002.
a few. http://www.cardweb.com/carddata