Case Study Prompt
In the last year, COVID has driven consumer spending – and, in a related fashion, consumer credit balances.
At the same time, our client – Credit Card Master (CCM), based on the East Coast in the U.S., has faced strong competition from new credit cards entering the market.
Our client offers own-branded cards – cards that are not affiliated, for example, with travel brands, but that run primarily on the VISA network. And while business travel has all but been wiped out, the sign-up bonuses for business co-branded cards have gotten even sweeter, so the competition’s cards have not dropped in adoption as originally predicted.
While it offers an array of cards, CCM is considering dropping the $95 annual fee on its most popular card – a basic points-earning card – to become more competitive. What should it do?
Case Study Overview
Your client is a financial services company that provides credit cards to consumers. Competition has been strong, and the company is considering dropping the annual fee on its most popular card to gain back some traction. What is your recommendation – yes or no?
When it comes time to create a framework for the case, try not to rely on basic frameworks. Use your business acumen and what you’ve learned from your case practice to formulate a custom structure!
This case has a high degree of quantitative difficulty. It’s most like a case you could expect in a final round Capital One interview.
Capital One Interview Tips
What does Capital One look for in its candidates? A high degree of comfort with numbers and quantitative analysis. Familiarity with the financial services industry is an additional perk.
Focus on coming away with 1 or 2 key areas you can improve on in your next case.
For out-loud practice with an expert, book an hour with an ex-MBB coach.
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