Global Strategic Management

Carson Shelia

Strategic Management

Unit 1 Individual Project

October 8, 2010

Instructor: Professor John Martin

Visa Corporation

Introduction

Visa, a technology company, that is one of the worlds’ largest companies that connect

consumers, businesses, banks and governments in countries around the world enabling them to

use electronic currency instead of cash and checks. The company has built one of the most

advanced processing networks that can handle anywhere from 10,000 transactions per

second with reliability convenience, security and guaranteed payment to merchants. (Visa.com,

2010)

The most important problem facing VISA is their weaknesses and threats. The weakness of

the Visa business model is susceptible to litigations. Since the year of 2005, there have been 55

class action and individual complaints filed on behalf of merchants against the organization.

(Visa, Inc.2010) It has been reported that Visa has agreed to pay out over $1.1 billion across the

U.S. as part of an antitrust settlement. Several cases are still pending. Another weakness of the

Visa corporations are their open loop system from low control over the cardholder service.

Visa has a closed loop system that has direct access to their merchant and consumer information.

They tend to have greater control over the service than operators. Visa depend solely on their

financial institutions customers to provide products and services directly to the cardholders.

(Visa, Inc. 2010). Threats against Visa consist of legislation interchange reimbursement fees....