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 Express (NYSE:AXP) is one ***** the world's leading providers of premium travel-related services and payment processing system support services globally. American ***** (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 concentrates today on a series 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 ***** bolster foreign *****, Amex reorganized to have operating segments re-aligned to a global consumer and ***** business-*****-business structure (Taube, Gargeya, *****). The 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) and it's International ***** Services (ICS) within the global consumer group with the intent of creating a more uniformly focused culture on customer service ***** recovery in this sector (Giglio, Mich*****lcova Yates, 2007). Of all services divisions ***** ***** *****, 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. ***** 2007, and since the reorganization, ********** (Taube, Gargeya, 2007). As ***** ***** the re-organization the company has also integrated in its Travel Related Services (TRS) unit with its U.S. bank*****g subsidiaries to include the icon of *****ir brand, their consumer charge cards. From the classic green ***** Express personal card, to the American ***** Gold, Platinum and Centurion Card, to the revolving cards including Blue with is the processor ***** Optima, this division manages consumer accounts. What is remarkable ***** that ***** average spending $8,360 per ***** card is four times that of competi*****r Visa's average ***** of $2,470 per ***** and MasterCard's $1,960 per card as well. This point made in the case quantifies how powerful the Amex brand is within the upper income segments of the American credit ***** market, and also s*****s significant potential for global growth with affluent consumers. To continually pursue global ***** ***** company contracted in 2007 with Harrods to offer a cus*****mized American Express card ***** that store as well (Taube, *****, 2007). Amex realized that ***** addition to these cus*****mized *****s, 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 compr*****ed of 80 different ***** in each country ***** only a ********** of them ***** the travel industry (McClellan, 2007). One of the strategic objectives as defined in the c*****e study ***** apparent from subsequent research is the development ***** ***** Global Commercial *****

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