Capital One Financial and a decade of experience with newly vulnerable markets: Some propositions concerning the competitive advantage of new entrants

Market share and brand recognition have historically provided advantage to established players in mature industries. The success of Capital One, an attacker in the mature credit card industry is therefore interesting, both to researchers and to executives developing strategies. A partial explanation is offered by the theory of newly vulnerable markets. The success of Capital One can be partially attributed to its application of information-based strategies to several newly vulnerable markets, allowing it to target and retain the most profitable customers. These strategies sustained double-digit return on equity and double-digit increase in sales volume and profits every year of our study.