09Jul '09

Blue Ocean or Stormy Waters? Buying Nix Check Cashing

Harvard Business Publishing

Theme: Harvard Business School case study evaluating a strategic option for a company aiming to create a blue ocean.

Summary: The study presents the case of Kinecta Federal Credit Union that has the opportunity to purchase Nix Check Cashing as part of their "blue ocean" strategy to reach the financially underserved to increase credit union membership and deposits. However they face reputational as well as financial risk, as check cashing, payday lending, and other alternative financial services are maligned in mainstream financial circles. This case asks students to evaluate both organizations, their respective industries, and the proposed $45 million deal to determine whether or not it makes sense for Kinecta to purchase Nix.

Reference: Tufano, Peter, and A. Ryan. “Blue Ocean or Stormy Waters? Buying Nix Check Cashing.” HBS No. 210-012. Boston: Harvard Business School Publishing, 2009.
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