Hard charger (Visa)

Article Type: From: Strategic Direction, Volume 25, Issue 4

Saunders J.Forbes, 27 October 2008, Vol. 182 No. 8, Start page: 84, No. of pages: 5

Purpose – Examines how the credit card company, Visa, is facing an increasingly competitive environment. Design/methodology/approach –Highlights how until recently the big banks were both Visa’s owners and closest allies; draws attention to how they are now becoming involved with some of Visa’s closest rivals – American Express and Discover and refers to how the big retailers are launching a new generation of plastic. Charts Visa’s evolution; looks at the company’s changing relationship with the big banks;identifies the reasons Wall Street loves Visa’s business model and supports Visa’s continued dominance of the market. Outlines Visa’s strategy;examines how they may be impacted by failing consumer spending and looks at why it has become easier for new cards to enter the market. Describes the steps being taken by Joe Saunders, the new chief executive, to protect Visa’s position; describes how he is becoming involved in mobile phone technology and expanding Visa’s operations abroad, where the main rival is still cash;quotes industry experts on how Visa will have ’to innovate or die’. Originality/value – Identifies the challenges facing Visa as it enters emerging markets.ISSN: 0015-6914Reference: 38AA579

Keywords: Competitive strategy, Corporate strategy, Credit cards, Visa