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 of the world's leading providers of premium travel-related services and payment processing system support ***** globally. American Express (Amex) has grown steadily through a series of mergers, acquisitions and later divestures to focus entirely on their ***** card ***** ***** processes services (Taube, Gargeya, 2007). ***** c*****centrates today on a ***** of financial products and services to individuals, small businesses, ***** large corporations 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 ***** ***** 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 (*****, Gargeya, *****). The company also completed this re-organization for corporate accounts and ancillary businesses as well. As part of the re-organization, Amex placed its U.S. Card Services unit (USCS) and it's ********** Card Services (ICS) within the global consumer group with the intent of creating a more uniformly focused culture on customer service and recovery in this sector (Giglio, Michalcova Yates, 2007). Of all services divisions of the *****, USCS is ***** most ********** as it concentrates on the issuance of cards to consumers and the offering of services to ***** businesses in ***** U.S. ***** *****, and since the reorganization, glob*****y (Taube, Gargeya, 2007). As ***** of the re-organization the company has also integrated in its Travel Related ***** (TRS) ***** with its U.S. bank*****g subsidiaries to include the icon of *****ir brand, their consumer charge *****. From the classic green American Express personal card, to the 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 is that the average spending $8,360 per Amex card ***** four times that ***** competitor Visa's average spending of $2,470 per card and MasterCard's $1,960 per card as well. This point made in the case quantifies how powerful the Amex ***** is *****in the upper income segments of the American credit card market, and ***** shows significant potential for global growth with affluent *****. To continually pursue global growth ***** ***** contracted in 2007 with Harrods to offer a cus*****mized American Express card for that store as well (Taube, Gargeya, 2007). Amex realized that ***** addition to these customized cards, the need to increase the number of redemption services was also critical, and as a result ********** added 1,400 redemption partners globally since the reorganization (*****, Gargeya, *****). This network is compr*****ed of 80 different ***** in each country with only a *****th of 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 Services

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