Chase.com's Quest for a Global Web Presence - Overview

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Chase.com’s Quest for a Global Web Presence

Overview

Chase.com and Chase Manhattan together are an international powerhouse in commercial banking.  The bank has been continually growing since the merger in 1955 between The Chase National Bank and The Bank of Manhattan Company; another merger with the Chemical Banking Company of New York in 1996 made Chase the largest bank holding company in the US.  It was the takeover of J.P Morgan in 2000, which lead to Chase becoming the powerhouse of international banking.

Reasons for development

Two of the major problems that Chase Manhattan faced were due to changes in the general business environment.

  • Globalisation is fast becoming a reality and therefore Chase's domestic customers were now competing with rivals all over the world. Chase in turn had to be able to offer these customers top-quality service wherever they were doing business.
  • Advances in telecommunications, including the growth of the Internet, forced Chase (as well as all other major banks) to use telecommunications to compete globally.

Chase Manhattan had no choice but to expand and set up Chase.com due to the changing global economy. The internet has fast become used in every business all over the world and in order for Chase to keep in touch with it's customers and to keep ahead of its competitors it has to optimise business and links to noncore services.

Before a new system can be successfully implemented, the characteristics of the company need to be evaluated to see what type of system would be beneficial to them.  

When analysing Chase, Porter’s five forces can be used, we have already heard about industry growth, which would come under the rivalry section of the forces, the industry growth that has occurred in banking inevitably leads on to product development and banks compete to stay ahead of each other.  From 1980 onwards Chase spent $500million a year on modernizing its technology in the hope of gaining a competitive edge while cutting costs.  It later became clear to Chase that web-based banking was needed and this lead to the birth of Chase.com, where $400million was spent on diversifying their service.

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With web-based banking becoming ever more popular Chase.com had to find a level at which they could compete with rivals, Chase even took competition to the level of competing with themselves so that they could capture and maintain business.  To keep themselves ahead of competitors Chase.com created Internet procurement services and networks enabling businesses to bill and receive payments through the web.

The value chain model can be used to coordinate the specific needs of Chase to its ASP.  When creating the system solution Chase requested the following features:

  • A system that would help them gain ...

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