Posted: August 22nd, 2022

Choosing either Visa or MasterCard, conduct your search via Business Source. Identify critical competitors in the industry and utilize the SWOT analysis information to discuss and critically analyze Strengths, Weaknesses, Opportunities, and Threats.

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Peer Response
Within business, working professionals should become comfortable receiving and giving constructive feedback. Critical analysis of topics, and providing and receiving constructive feedback, is important in one’s professional growth and development and a core competency for leaders. You will be expected to read the initial posting of at least ONE peer or instructor, and then provide constructive criticism to their peers’ initial postings. You should highlight strengths as well as opportunities for improvement:
Point out what you perceived to be the strengths of the initial posting along with supporting rationale.
Identify specific opportunities for improvement with regard to the content in the initial posting. Furthermore, you should provide supporting rationale for your stated position, as well as concrete suggestions and guidance intended to strengthen the effectiveness of the content.
Each response should be a minimum of 250 words
Student 1 Patricia
Week 1 -Mastercard, Inc
Choosing either Visa or MasterCard, conduct your search via Business Source. Identify critical competitors in the industry and utilize the SWOT analysis information to discuss and critically analyze Strengths, Weaknesses, Opportunities, and Threats.
Mastercard Incorporated is a payment and technology company that deals with clearing authorization and settling payment transactions (MarketLine, 2022). Mastercard serves small and medium businesses, consumers, large enterprises, banks, the government, and the public sector (About Mastercard, n.d.).
Mastercard’s purpose states, “we work to connect and power an inclusive digital economy that benefits everyone, everywhere by making transactions safe, simple, smart and accessible” (About Mastercard, n.d., para. Our purpose). As a global payment and technology company, its operational framework, working capital surplus, and comprehensive payment solutions are strengths that help position the giant as a worldwide leader in payment solutions (MarketLine, 2022). Mastercard’s operational presence and growth enable it to grow organically, enhancing its performance. The company operates in over 150 currencies in more than 210 countries and territories (MarketLine, 2022). Mastercard’s gross dollar volume (GDV) for consumer credit programs stood at $2,425 billion; consumer debt and prepaid programs were $3,230 billion; commercial credit and debit programs were $682 billion (MarketLine, 2022).
The company’s working capital surplus, which enhanced its financial stability, improved to $7,266 million from $4,998 million in the previous year. Assets grew 13.1% to $19,113 million from $16,902 million. Current liabilities declined 0.5% to $11,847 from $11,904 million (MarketLine, 2022).
When assessing the overall health of Mastercard, the company reported a deterioration in its cost efficiency in FY2020, which restricted its profitability. This is slated as a weakness for Mastercard. The cost efficiency ratio declined to 47.19%, compared to 42.76% in the previous year. During the year, operating expenses grew, and revenue declined. The decline in revenue was associated with a decrease in cross-border volume, growth in rebates and incentives, as well as the impact of COVID-19 (MarketLine, 2022).
The opportunity for Mastercard starts with the growing market for payment channels in the US, its business acquisitions and expansions, and its Fintech initiatives. This growth could result from the increasing popularity of contactless cards, the government’s efforts to promote electronic payments, and the development of e-commerce due to the pandemic (MarketLine, 2022). Cards in circulation in the US are projected to reach 1,338.9 million in 2024. That is a breakdown of 565.5 million debit cards, 750 million credit cards, and 23.4 million charge cards (MarketLine, 2022).
A SWOT analysis would be incomplete without analyzing the threats to the corporation. Mastercard identified regulatory changes: the EU, technological changes, the Covid-19 pandemic, and competition as threats to its business health.
Major competitors for Mastercard include American Express, Discover Financial Services, PayPal Holdings, Inc., UnionPay, and Visa, Inc. It competes based on factors such as consumers, technology and innovation, distribution network, service quality, and affiliated financial institutions (MarketLine, 2022).
Overall, Mastercard is in a better position than its major competitors because it has less exposure to debit cards and better diversification with more agility in terms of current trends (Smith, 2022).
References
About mastercard. (n.d.). https://www.mastercard.us/en-us/vision/who-we-are.html (Links to an external site.)
MarketLine. (2022, April 26). Ebsco publishing service selection page – ehost2. https://web.s.ebscohost.com/ehost/pdfviewer/pdfviewer?vid=4%26sid=583a094d-4f20-4b74-8196-bb8af92dea4e%40redis (Links to an external site.)
Smith, R. (2022, January 10). Why Mastercard stock keeps dropping. Nasdaq. https://www.nasdaq.com/articles/why-mastercard-stock-keeps-dropping
Student 2 Erika
MasterCard is a global organization primarily focused on the payment and technology industry. We will be conducting a SWOT analysis of the organization. A SWOT analysis is a strategic management technique used to aid an organization in identifying Strengths, Weaknesses, Opportunities, and Threats related to business competition or project planning.
Strengths for MasterCard are comprehensive payment solutions, efficiency, and wide presence. “They offer various payment solutions for credit, debit, prepaid, and commercial cards; digital payments, real-time account-based payments, and payment system security; transaction services such as cross-border and domestic transactions.” (Mastercard Inc. SWOT Analysis, 2022)
A weakness for MasterCard is a working capital surplus. This could put a strain on the organization’s ability to meet day-to-day expenses. “In FY2021, the WCS declined to US$3,787 million from US$7,266 million in the previous year.” (Mastercard Inc. SWOT Analysis, 2022)
An opportunity for MasterCard is offering new services; by doing this, they will be able to grow their customer base. They should consider benefits to streamline current processes such as BillPay, transfers, and tackle identify left. In March 2022, it was announced that MasterCard will team up with Bilt Rewards. This is an excellent opportunity as they offer earn points with no transaction fees on rent payments for members at any rental property in the US.
MasterCard’s threats are competition, such as other credit card companies, American Express, Discover, and Visa. These organization compete in areas such as consumers, technology and innovation, distribution network, and service quality. With many competitors it is important the Mastercard stay on top of innovation.
Areas of risk for MasterCard is identity theft and hacking. As a computer-based organization, they are a target for hackers and security threats. “Although the company’s online portal operations contain diverse security mechanisms, they are still vulnerable to unauthorized attacks (break-ins or denial-of service attacks), zero-day security holes and similar disruptions caused by hackers.” (Mastercard Inc. SWOT Analysis, 2022) A attack can result in delays in services and cause customers to have a distrust in the organization.
References:
Mastercard Inc. SWOT Analysis. (2022). Mastercard Inc SWOT Analysis, 1–7.
Qasim, Q. I. (2021). The Influence of the SWOT Analysis Strategy on the Achievement of the Fifth Preparatory Literary Class Students’ Evaluative Thinking at History. International Journal of Early Childhood Special Education, 13(2), 66–78. https://doi.org/10.9756/INT-JECSE/V13I2.211041 (Links to an external site.)
Who We Are. (2022). MasterCard. https://www.mastercard.us/en-us/vision/who-we-are….

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