ECONOMICS

Visa Europe



Table of Contents

Introduction1

Life flows better with Visa1

The change in consumer spending2

The impact of consumer spending2

Change in Demand4

Payments at London4

Partnerships5

Investments and technology up gradation5

Competition6

Marketing impact6

Economic growth7

Theory of coopetition9

Disadvantages of coopetition for Visa9

Advantages of Coopetition for Visa10

Conclusion12

References13

Visa Europe

Introduction

Visa Europe is a business that deals with payments. The business for the company is based around secure and speedy delivery of payments for its consumer, business and private and public sector customers. The Visa card is recognized and accepted across the globe. The company has established itself as a very strong brand but there is still some confusion in the minds of the target audience as to how the company operates (Preussa 2005, 281).

Visa Europe is a company of over 4000 members. These include banks and other service providers that are spread across Europe. It is head quartered in London and has offices in Athens, Paris, Amsterdam, Bucharest, Lisbon, Brussels, Reading, Frankfurt, Istanbul, Milan, Warsaw, Stockholm and Madrid.

Life flows better with Visa

The company is determined at becoming an everyday part of people's life and this is the very objective behind the latest marketing campaign run by the company that states Life flows better with Visa. Sports are an important part of many people's life. Visa has been associated with Olympics for the past quarter century. In July 2011, Visa Europe celebrated its twenty fifth anniversary of this association with Olympics. The economic impact that the historical event of London 2012 Olympic Games will have cannot be understood by any company better than Visa Europe. This is because out of every £4 spent in the UK £1 is spent through Visa. In Europe alone, Visa has 430 million users of its debit cards, credit cards and commercial cards. These cards generate as huge as €1.6 trillion between March 2010 and March 2011. Since, Visa has been associated with Olympics for as long as a quarter century, the company possesses the intelligence to understand the economic impact that Olympics will have on the UK economy as well as the impact that it will have on Visa (Airola 2000, 1, )

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The change in consumer spending

According to the research conducted by Visa there will be an immediate increase in the consumer spending in the UK amounting to £750 million. This is a huge increase that will take the residents' income in the UK up to £229 million. Studying the longer term impact, Visa found that Olympics will have the following impact on the UK economy.

Figure 1) Longer term economic impacts (until 2015)

The impact of consumer spending

Since Visa is associated with spending and payment business, any impact that London 2012 Olympics have on the other businesses associated with the event will also have an impact on Visa as all the spending will be taking place through the Visa debit, credit or commercial cards. The Olympics 2012 will last for a period of seven years and during this brief period of seven years, it is the company's once in a decade opportunity to make the ...