Essay - American Express Case Study Part I: Situation Analysis Analysis of...


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American Express Case Study

PART I: S*****TUATION ANALYSIS

Analysis of the Firm

American ***** (NYSE:AXP) is one ***** the world's leading providers of premium travel-related services and payment processing system support services globally. American Express (Amex) has grown steadily through a series of mergers, acqu*****itions and later divestures to focus entirely on their ***** card and ***** processes services (Taube, Gargeya, 2007). ***** c*****centrates today on a series of financial products and services to individuals, small businesses, ***** large corporati*****s including the Fortune 500, and higher education institutions globally. The company operates on a global scale, yet ***** majority of its revenue is generated in the U.S. For an analysis of ***** Express Revenues and Earnings before Interest and Taxes, see Table 1: American Express Geographic Analysis. In an effort ***** bolster foreign revenue, Amex reorganized to have operating segments re-aligned to a global consumer and ***** business-*****-business structure (Taube, Gargeya, 2007). ***** company also completed this re-organization for corporate accounts and ancillary businesses as well. As part of ***** *****, Amex placed its U.S. Card Services unit (USCS) ***** it's International ***** Services (ICS) within the global consumer group with the intent of creating a more uniformly focused culture on customer service *****nd recovery in this sector (Giglio, Michalcova Yates, *****). Of all services divisions of the *****, USCS is the most well-known as it concentrates on the issuance of cards to c*****sumers and the offering of services to ***** ***** in the U.S. through 2007, and since ***** reorganization, globally (Taube, Gargeya, 2007). As ***** ***** the re-organization the company has also integrated in ***** Travel Related Services (TRS) ***** with its U.S. bank*****g subsidiaries ***** include the icon of their brand, their consumer charge *****. From the classic green ***** Express personal card, to ***** American ***** Gold, Platinum and Centurion Card, to the revolving cards including Blue with is the processor of Optima, this division manages consumer accounts. What is remarkable ***** that ***** average spending $8,360 per ***** card is four times that of competi*****r Visa's average ***** of $2,470 per ***** and MasterCard's $1,960 per card as well. This point made in the case quantifies how powerful the Amex br***** is with***** ***** upper income ***** ***** the American credit card market, and also shows significant potential for global growth with affluent consumers. To continually pursue global growth the company contracted in 2007 with Harrods to offer a cus*****mized Americ*****n Express card for ***** store as ***** (Taube, *****, 2007). Amex realized that ***** addition to these cus*****mized *****s, the need to increase the number of redemption services was also critical, and as a result *****y added 1,400 redemption partners ***** since the reorganization (*****, Gargeya, 2007). This network is compr*****ed of 80 different partners in each country ***** only a *****th ***** them ***** the travel industry (McClellan, 2007). One of the strategic objectives as defined in the c*****e study and apparent from subsequent research is the development of the Global Commercial *****

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