Analysis of Competitive Environment in American Credit Card Market

Running head: CREDIT CARDS
Credit Cards
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1
CREDIT CARDS
Answer 1:
The analysis of the competitive environment in the American credit card market had
positive influences on the new credit card product which JP Morgan Chase launched in the
United States of America. The first positive influence which analysis of the American credit card
market ushered on JP Morgan and Chase was that the banking company was able to introduce
five credit card products each targeting to fulfill the needs of the five different segments of credit
card customers. JPMorgan credit card targeted middle class customers while Chase Sapphire
credit targeted the upper class customer segments who preferred travelling and dining, thus using
credit cards to make these payments. The Chase Ink credit card targeted the small firms and the
Chase Freedom targeted the customers who wanted to save money in the forms of cash backs.
The Chase Slate credit card allowed customers to invest in the American financial market to earn
positive returns on investments (Creditcards.chase.com. 2019). This appropriate market
segmentation enabled the American multinational generate huge revenue in the forms of debts
obtained from credit card holders and interests on the late payments since credit is an asset
product. The second benefit which the Chase branded credit cards attributed to the American
multinational bank was product differentiation in comparison to the credit cards offered by its
competitor banks. Moreover, the bank offered the customers around the clock after sales services
which enabled the bank to boost customer satisfaction which prevented the competitor banks
from poaching its credit card customers. Thus, the third benefit which the extensive market
analysis attributed to JP Morgan Chase was perpetual revenue generation and high position in the
competitive credit card market of the United States of America (Mian and Sufi 2018).