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 ***** 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 global scale, yet the majority of its revenue is generated in ***** 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-to-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 the global consumer group with the intent of creating a more uniformly *****ed culture on customer service ********** recovery in this sector (Giglio, Michalcova Yates, *****). Of all services divisions of ***** *****, USCS is the most well-known as it concentrates on ***** issuance of cards to consumers and the offering of services to ***** ***** in ***** U.S. ***** 2007, and since the reorganization, ********** (Taube, Gargeya, 2007). As ***** of ***** re-organization the company has also integrated in ***** Travel Related ***** (TRS) un***** with its U.S. bank*****g subsidiaries ***** include the icon of *****ir br*****, their consumer charge cards. From the classic green ***** Express personal card, to ***** American Express Gold, Platinum and Centurion Card, to the revolving ***** including Blue with is the processor ***** Optima, this division manages consumer acco*****ts. What is remarkable is that ***** average spending $8,360 per Amex card is four times that of competi*****r Visa's average ***** 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 ***** the upper *****come segments of the American credit card market, and also s*****s significant potential for global growth with affluent consumers. To continually pursue global ***** the ***** contracted in 2007 with Harrods to offer a customized American Express card ***** that store as well (Taube, Gargeya, 2007). Amex realized ***** in addition to these cus*****mized *****s, the need to *****cre*****e ***** number of redemption services was also critical, and as a result they added 1,400 redemption partners globally since the reorganization (Taube, Gargeya, 2007). This network is comprised of 80 different partners in each country with only a fourth of them ***** the travel industry (McClellan, 2007). One of ***** strategic objectives as defined in the ***** study and apparent from subsequent research is the development ***** the Global Commercial Services

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