Barclays in the mid 1960's, realised the importance of change in order to achieve its goal of being the market leader in banking and other financial services. Barclaycard is the top credit card processor and consumer lending services in the United Kingdom.
Barclaycard is not an independent company but just a department of Barclays Bank. It has its main office located in Northampton.
It has a global coverage with operations in UAE, Germany, Spain, Greece, Italy, Portugal and Africa. This geographical spread coupled with its information technology competence is responsible for the competitive strength of Barclaycard.
Since the emergence of credit cards business in the United Kingdom there have been other players in the market. (e.g. Lloyds, Royal bank of Scotland and Royal Bank).
This paper therefore, aims to critically analyse the strategic processes, positioning and successes of Barclaycard in credit card market. Hence presents a comprehensive Market Analysis report.
The macro environment analysis and will critically evaluate the factors that ignite changes in the credit card business environment.
Drivers of change:
The introduction of "white paper " on credit card borrowing in 2003 , by the UK government which tends to affect the profitability of Barclaycard business.
The introduction of new power for regulation and new forms of credit card policy by the Minister.,
The introduction of honesty table which came as a result of the government enquiries into decline in interest rates of credit card.
The published average revenue stream from credit card issuers and processors enhance the strategic development by credit card business organisation.
Technically, the introduction of smart or chip card affected card processing and the credit card business in general.
The transition from paper to electronic processing that introduces large scale economics din card processing.
Impact of Change: