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 ***** (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, acqu*****itions and later divestures to focus entirely on their premium card ***** payment processes services (Taube, Gargeya, 2007). ***** concentrates 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 glob*****l scale, yet the 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 *****, Amex reorganized to have operating segments re-aligned to a global consumer and global business-*****-business structure (*****, Gargeya, 2007). ***** company also completed this re-organization for corporate accounts ***** ancillary businesses as well. As part of ***** *****, Amex placed its U.S. Card Services unit (USCS) and it's *****ternational Card Services (ICS) within the 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 ***** the *****, USCS is the most *****-known as it concentrates on the issuance of cards to consumers and the offering of services to small ***** in ***** U.S. through *****, and since the reorganization, ********** (Taube, Gargeya, 2007). As ***** ***** ***** re-organization the company has also integrated in ***** Travel Related Services (TRS) un***** with its U.S. bank*****g subsidiaries to include the icon of *****ir br*****, their consumer charge *****. From the classic green ***** Express personal card, to the American ***** Gold, Platinum and Centurion Card, to ***** revolving cards including Blue with is the processor of Optima, this division manages ***** accounts. What is remarkable is that the average spending $8,360 per ***** card ***** four times that of competi*****r Visa's average spending of $2,470 per ***** and MasterCard's $1,960 ***** card as well. This point made in ***** case quantifies how powerful the Amex *****and is with***** ***** upper income segments of the American credit ***** market, and ***** shows significant potential for global growth with affluent *****. To continually pursue global ***** the company contracted in 2007 with Harrods to offer a cus*****mized American Express card for ***** store as well (Taube, Gargeya, 2007). Amex realized that ***** addition to these customized *****s, the need to incre*****e the number of redemption services was also critical, and as a result *****y added 1,400 redemption partners globally since the reorganization (*****, Gargeya, *****). This network is comprised ***** 80 different partners in each country with only a fourth of them in 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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