Chase Sapphire: Situational Analysis, Problem, Alternatives, and Recommendations

Chase Sapphire Case Study
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Chase Sapphire Case Study
In 2016, JP Morgan Chase launched Chase Sapphire. Chase Sapphire changed how Americans perceived credit cards. Within two weeks, JP Morgan Chase had achieved its sales target which was projected to be met after twelve months (Santana, Avery, & Snively, 2018). The bank captured a significant percentage of the targeted market segment comprising high-net-worth clients. The case analysis of Chase Sapphire focuses on the situational, problem, possible solutions, and recommendations.
Situational Analysis
The analysis of political, economic, sociocultural, and technology (PEST) will be used to discuss the external environment of Chase Sapphire. In particular, the political factors that might influence Chase Sapphire are the political governance system, democracy, policy changes, civil unrest, international trade treaties, terrorist attacks, and armed conflict (Santana, Avery, & Snively, 2018). Since the United States of America (USA) has a stable political environment, many of the above factors have been neutralized. In addition, the consistency in policymaking from one political administration to another facilitates smooth Chase Sapphire operations. The economic factors that can affect Chase Sapphire include the rate of foreign exchange, price fluctuations, inflation, government spending, financial market structure, and workforce productivity (Swartz, 2020). For instance, Chase Sapphire needs to evaluate new markets carefully before entering other countries. Moreover, the sociocultural factors that affect Chase Sapphire include people’s buying trends, population demographics, education, cultural values, and saving or spending attitudes. For example, since Millennials have increased spending behaviors, they are likely to use Chase Sapphire credit cards to buy things online, making the company generate more profits. The technology factors that might affect Chase Sapphire are Internet penetration, the use of smartphones, mobile payments, protection of intellectual property, e-commerce, and the launching of 5G infrastructure (Swartz, 2020). If more people own smartphones and use mobile payments to buy things online, it can lead to the decline of users of Chase Sapphire. Furthermore, competitors of Chase Sapphire might introduce similar credit card services, particularly if the intellectual property is not protected.
The internal and external environment of Chase Sapphire can be analyzed by focusing on the strengths, opportunities, threats, and weaknesses (SWOT). Chase Sapphire has various strengths, including a highly reputable brand name internationally, good financial management, a deep focus on integrating technology with its business processes, available 24/7 customer care support to resolve any issues reported by the clients, and strategic business decisions. The management of this company ensures that Chase Sapphire introduces financial products and services that meet the needs of its clients. The company’s weaknesses include credit card security issues, high operation costs, the inability to differentiate customers’ needs by introducing multiple overriding products, and inaccurate sales forecasts (Swartz, 2020). For instance, when Chase Sapphire card users complain about hacking issues and identity theft, the firm loses its reputation and many people might be afraid of using Chase Sapphire credit cards. Chase Sapphire has numerous opportunities, namely the increased usage of social media, smartphones, blockchain technology, tapping emerging wealthy clients, providing rewards to distinctive customer segments, and using the credit card’s physical appeal to create value. The company can use social media to advertise its financial products and services. Moreover, it can implement blockchain technology to improve the security of its credit cards. Chase Sapphire encounters various threats, such as cyber security risks, increased competition in the financial sector, changes in government regulations, an increased dormant customer segment, and constant innovation by business rivals. The firm must keep innovating to ensure that it improves its products and services by adding more f...