What Competitive Strategy Are the Credit Cards Companies Are Pursuing? How Do Information Systems Support That Strategy?

What competitive strategy are the credit cards companies are pursuing? How do information systems support that strategy?

The credit cards companies need to find a way for customers to choose their own company credit card. So, they are using many competitive strategies to attract as much customers as they can and give them more accurate quality of services. One of these strategies is cost leadership strategy which is producing products and or/services at the lowest cost in the industry. With information systems, companies make credit card very useful and simple. Each purchase by the card is assigned a four-digit category code that describes the type of the purchase that was made. This method make companies easy to collect the data, at last they can reach low cost. Also, credit cards companies following differentiation strategy which is offerring different products, services, or product features. Specifically for banks, there are some kind of card that have been appear: ATM card, cash card, debit card, charge card ,and the credit card also. By offering different, “better” products, companies can charge higher prices, sell more products, or both. So, these companies use information systems to enable product and services variation. Moreover, these companies are applying Niche Strategy which is to select a narrow-scope segment (niche market) and be the best in quality, speed, or cost in that market. So, they use information systems to enable specific market (example: variation in BCA card), and serve this narrow target market better than competitors. Information systems support this strategy by producing and analyzing data. Finally, they are using Customer orientation strategy which is the concentration on making customers happy and make relationship with supplier. So, information systems support customer relationship management and it will be especially effective in this area because they can provide a personalized,