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 premium card and ***** processes ***** (Taube, Gargeya, 2007). Amex c*****centrates today on a series of financial products ***** services to individuals, small businesses, and large corporations including the Fortune 500, ***** 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 ***** American Express Revenues and Earnings before Interest and Taxes, see Table 1: American Express Geographic Analysis. In an effort to bolster foreign *****, Amex reorganized to have operating segments re-aligned to a global consumer and global business-*****-business structure (Taube, Gargeya, *****). ***** 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 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, 2007). Of all services divisions ***** ***** *****, USCS is the most *****-known as it concentrates on the issuance of cards to c*****sumers ***** the offering of services to small businesses in the U.S. ***** *****, and since the reorganization, *****ly (Taube, Gargeya, 2007). As ***** of ***** re-organization the company has also integrated in ***** Travel Related Services (TRS) un***** with its U.S. banking subsidiaries ***** include the icon of their br*****, their consumer charge cards. From the classic green American Express personal card, to ***** American Express Gold, Platinum and Centurion Card, to the revolving ***** including Blue with is the processor of Optima, this division manages consumer acco*****ts. What is remarkable ***** that the average spending $8,360 per Amex ***** is four times that ***** competitor Visa's average spending of $2,470 ***** card and MasterCard's $1,960 per card as well. This point made in ***** case quantifies how powerful the Amex brand is with***** the upper income segments of the American credit ***** market, and ***** shows significant potential for global growth ***** affluent consumers. To continually pursue global growth the ***** contracted in 2007 with Harrods to offer a customized Americ*****n Express card ***** ***** store as ***** (Taube, *****, 2007). Amex realized that ***** addition to these customized *****s, the need to incre*****e ***** 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 compr*****ed of 80 different partners in each country with only a fourth ***** them ***** the travel industry (McClellan, 2007). One of ***** strategic objectives as defined in the c*****e study ***** apparent from subsequent research is the development of ***** Global Commercial *****

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