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 premium card and payment processes ***** (Taube, Gargeya, 2007). ***** concentrates today on a series of financial products and services to individuals, small businesses, ***** large corporati*****s 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 to bolster foreign revenue, Amex reorganized to have operating segments re-aligned to a global consumer and ***** business-*****-business structure (*****, Gargeya, *****). ***** company also completed this re-organization for corporate accounts ***** ancillary businesses as well. As part of ***** re-organization, Amex placed its U.S. Card Services unit (USCS) and it's International Card 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, Michalcova Yates, 2007). Of all services divisions of ***** company, USCS is the most *****-known as it concentrates on ***** issuance of cards to consumers and the offer*****g of services to ***** ***** in the U.S. ***** 2007, and since ***** reorganization, *****ly (Taube, Gargeya, 2007). As ***** of the re-organization the company has also integrated in its Travel Related ***** (TRS) unit with its U.S. bank*****g subsidiaries ***** include the icon of *****ir br*****, 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 ***** that the average spending $8,360 per Amex card is four times that of competitor Visa's average ***** of $2,470 per card and MasterCard's $1,960 ***** card as well. This point made in the case quantifies how powerful the Amex ********** is within ***** upper income ***** of the American credit ***** market, and also shows significant potential for global growth with affluent consumers. To continu*****y pursue global growth the ***** contracted in 2007 with Harrods to offer a customized American Express card for ***** store as ***** (Taube, *****, 2007). Amex realized that ***** addition to these cus*****mized *****s, the need to increase ***** number of redemption services was also critical, and as a result they *****dded 1,400 redemption partners globally since the reorganization (Taube, Gargeya, *****). This network is compr*****ed ***** 80 different ***** in each country ***** only a *****th of them in the travel industry (McClellan, 2007). One of ***** strategic objectives as defined in the c*****e study ***** apparent from subsequent research is the development ***** the Global Commercial Servi*****s


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