Ivey Publishing

Product Details

NextCard
Product Number:
9B04M038
Publication Date:
06/24/2004
Revised Date:
10/14/2009
Length:
9 pages
Product Type:
Case (Library)
Source:
Northeastern University
NextCard was a credit card issuer seeking to exploit the growing e-commerce market in the United States. It was founded in 1996, saw a successful initial public offering in 1999, and became an affiliate of Amazon.com, the largest online retailer. The year 2000 was a year of growth for NextCard, with the number of accounts more than trebling, to nearly three quarters of a million. However, on October 31, 2001, NextCard was placed under new regulatory limitations that imposed higher capital requirements than NextCard could meet. Goldman Sachs attempted to find a buyer for NextCard, but was not successful. On July 10, 2002, NextCard accounts were closed. This case can be used to discuss firm failure, effect of regulation, first-mover advantage, rapid growth, partnerships and consumer credit.
Issues:
Disciplines:
Entrepreneurship,  General Management/Strategy
Industries:
Finance and Insurance
Setting:
United States, Medium, 2002
Intended Audience:
Undergraduate/MBA
Price:
$5.30 CAD / $5.00 USD Printed Copy
$4.50 CAD / $4.25 USD Permissions
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