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 ***** 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, acquisitions and later divestures to focus entirely on their premium card and ***** processes services (Taube, Gargeya, 2007). Amex concentrates 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 glob*****l scale, yet ***** 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 to bolster foreign *****, Amex reorganized to have operating segments re-aligned to a global consumer and ***** business-to-business structure (*****, Gargeya, 2007). ***** company also completed this re-organization for corporate accounts ***** ancillary businesses as well. As part of the *****, Amex placed its U.S. Card Services unit (USCS) and it's ********** ***** Services (ICS) within ***** global consumer group with the intent of creating a more uniformly focused culture on customer service ***** recovery in this sector (Giglio, Michalcova Yates, *****). Of all services divisions of ***** *****, USCS is the most ********** as it concentrates on the issuance of cards to c*****sumers and the offer*****g of services to ***** ***** in ***** U.S. through 2007, and since the reorganization, ********** (Taube, Gargeya, 2007). As part ***** the re-organization the company has also integrated in *****s Travel Related Services (TRS) ***** with its U.S. banking subsidiaries to include the icon of *****ir br*****, their consumer charge cards. From the classic green American Express personal card, ***** the American Express Gold, Platinum and Centurion Card, to ***** revolving ***** including Blue with is the processor of Optima, this division manages consumer accounts. What is remarkable ***** that the average spending $8,360 per ***** card is four times that ***** competi*****r Visa's average spending of $2,470 per ***** and MasterCard's $1,960 per card as well. This point made in ***** case quantifies how powerful the Amex ********** is ********** the upper income segments of the American credit ***** market, and also shows significant potential for global growth with affluent consumers. To continually pursue global ***** the company contracted in 2007 with Harrods to offer a customized American ***** card ***** that store as ***** (Taube, *****, 2007). Amex realized ***** in addition to these cus*****mized cards, the need to *****crease ***** number of redemption services was also critical, and as a result they *****dded 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 ********** of them ***** 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 ***** the Global Commercial *****


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