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

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American Express Case Study


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 and payment processes ***** (Taube, Gargeya, 2007). ***** c*****centrates today on a ***** of financial products ***** services to individuals, small businesses, and large corporati*****s 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 global 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) ***** it's ********** ***** Services (ICS) within the global consumer group with the intent of creating a more uniformly *****ed culture on customer service *****nd recovery in this sector (Giglio, Michalcova Yates, 2007). Of all services divisions ***** the company, USCS is the most ********** as it concentrates on the issuance of cards to c*****sumers and the offer*****g of services to ***** ***** in the U.S. through 2007, and since ***** reorganization, ********** (Taube, Gargeya, 2007). As ***** of the re-organization the company has also integrated in ***** Travel Related ***** (TRS) ***** with its U.S. banking subsidiaries ***** include the icon ***** their br*****, their consumer charge *****. From the classic green American Express personal card, to the American ***** Gold, Platinum and Centurion Card, to the revolving *****s including Blue with is the processor of Optima, this division manages ***** accounts. What is remarkable ***** that the average spending $8,360 per Amex card is four times that of competi*****r Visa's average ***** of $2,470 ***** card and MasterCard's $1,960 per card as well. This point made in the case quantifies how powerful the Amex brand is ***** ***** upper income segments of the American credit card market, and also shows significant potential for global growth ***** affluent consumers. To continu*****y pursue global ***** the company contracted in 2007 with Harrods to offer a customized Americ*****n Express card ***** ***** store as well (Taube, Gargeya, 2007). Amex realized that in addition to these customized *****s, the need to *****crease ***** number of redemption services was ***** 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 ********** ***** them ***** the travel industry (McClellan, 2007). One of ***** strategic objectives as defined in the ***** study and apparent from subsequent research is the development of the Global Commercial Services


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