Case study

A global cards company

Creating a healthy business

This cards company has enjoyed such a global expansion that today its brand is one of the most recognized and used in the world. In the years before working with PA, however, the business had experienced steady erosion in US market share – down by five percentage points. This decline persisted despite many initiatives to diagnose and solve the problem.

Working closely with the company’s management team, PA built a dynamic model that simulated how market share was driven in its business, the causes of its market share decline, and why past initiatives had failed. The model incorporated competition dynamics between all leading card brands, and permitted analysis of the cause-effect relationships that drive performance within the industry. Initially validated against historical data, the model was then used to test the likely effectiveness of new strategies in advance of committing to them.

With the help of PA’s predictive performance model, the client launched an ambitious market strategy that increased its share by eight percentage points and created billions of new dollars in value for issuers.