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


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American Express Case Study

PART I: SITUATION ANALYSIS

Analysis of the Firm

American Express (NYSE:AXP) is one of 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 premium card ***** ***** processes ***** (Taube, Gargeya, 2007). Amex concentrates 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 glob*****l scale, yet ***** majority of its revenue is generated in the U.S. For an analysis of American 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 the *****, Amex placed its U.S. Card Services unit (USCS) ***** it's ********** Card Services (ICS) within ***** global consumer group with the intent of creating a more uniformly *****ed culture on customer service ********** recovery in this sector (Giglio, Michalcova Yates, 2007). Of all services divisions ***** ***** *****, USCS is the most ********** as it ***** on the issuance of cards to consumers and the offering of services to small businesses in ***** U.S. through 2007, and since the reorganization, globally (*****, Gargeya, 2007). As ***** ***** ***** re-organization the company has also integrated in *****s Travel Related Services (TRS) unit with its U.S. banking subsidiaries ***** include the icon of their br*****, their consumer charge cards. From the classic green ***** Express personal card, to the American ***** Gold, Platinum and Centurion Card, to the revolving ***** including Blue with is the processor ***** Optima, this division manages ***** accounts. What is remarkable ***** that the average spending $8,360 per ***** ***** is four times that of competitor Visa's average spending of $2,470 per card and MasterCard's $1,960 per card as well. This point made in ***** case quantifies how powerful the Amex br***** is with***** the upper income ***** ***** the American credit ***** market, and also s*****s significant potential for global growth ***** affluent *****. To continually pursue global growth ***** company contracted in 2007 with Harrods to offer a customized American Express card ***** that store as well (Taube, Gargeya, 2007). Amex realized that ***** addition to these customized cards, the need to incre*****e ***** number of redemption services was ***** critical, and as a result they added 1,400 redemption partners globally since the reorganization (Taube, Gargeya, 2007). This network is compr*****ed ***** 80 different ***** in each country ***** only a fourth of them in the travel industry (McClellan, 2007). One of ***** strategic objectives as defined in the ***** study ***** apparent from subsequent research is the development of ***** Global Commercial Services

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