I. Case Summary
The passing of the Financial Services Modernization Act of 1999 repealed the Glass-Steagall Act, and the rescinding of the 1956 Bank Holding Company Act. “The legislation spurred a flood of mergers and acquisitions” by permitting banking, insurance, and securities firms to be affiliated/associated with one another, as a result it became extremely profitable and advantageous for financial institutions to consolidate and diversify their holdings. In doing so a financial firm was capable of offering a multitude of financial products and serviced through one encompassing entity. The particular market segment that this case analysis discusses is the J.P. Morgan Chase credit …show more content…
Rivalry (Intense): Larger credit card issuing institutions have consolidated the industry, resulting in the top 10 firms controlling 78 percent of the total market. As a consequence of the market consolidation rivalry has intensified, since customer retention, introductory rate offers, and value propositions have become the most important issues of the day.
(b) Firms Strengths Analysis • Through two large mergers CCS became one of the larger issuers in the credit card segment of the financial industry. • CCS parent company, J.P. Morgan Chase, has a strong international and investment banking presence. • CCS has a diversified credit card portfolio comprised of affinity, cobranded, agent and secured card products. CCS is most notably a very strong competitor in the cobranded credit card arena. • CCS offers for clients the industry leading secure internet platform. This platform provides bill consolidation for the corporate and business sector. • Internet presence through chase.com