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 ***** premium travel-related services and payment processing system support services globally. American Express (Amex) has grown steadily through a series of mergers, acquisitions and later divestures to focus entirely on their ***** card ***** ***** processes ***** (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 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-to-business structure (Taube, Gargeya, 2007). The 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 International ***** 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, *****). Of all services divisions ***** ***** company, USCS is the most ********** as it concentrates on the issuance of cards to c*****sumers ***** the offer*****g of services to ***** ***** in ***** U.S. ***** 2007, and since the reorganization, ********** (*****, Gargeya, 2007). As part of the re-organization the company has also integrated in ***** Travel Related Services (TRS) ***** w*****h 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 *****s including Blue with is the processor ***** Optima, this division manages ***** accounts. What is remarkable is that the average spending $8,360 per ***** card is four times that of competitor Visa's average spending of $2,470 ***** ***** and MasterCard's $1,960 per card as well. This point made in the case quantifies how powerful the Amex ***** is ***** ***** upper *****come ***** of the American credit ***** market, and also shows significant potential for global growth ***** affluent consumers. To continually pursue global growth ***** company 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 incre*****e the number of redemption services was also critical, and as a result they added 1,400 redemption partners globally since the reorganization (*****, Gargeya, *****). This network is comprised of 80 different ***** in each country with only a fourth ***** them ***** the travel industry (McClellan, 2007). One of ***** strategic objectives as defined in the c*****e study and apparent from subsequent research is the development of ***** Global Commercial *****

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