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 ***** the world's leading providers of 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). ***** c*****centrates today on a series of financial products ***** services to individuals, small businesses, and large corporations including the Fortune 500, and 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 of American Express Revenues and Earnings before Interest and Taxes, see Table 1: ***** Express Geographic Analysis. In an effort ***** bolster foreign *****, Amex reorganized to have operating segments re-aligned to a global consumer and ***** business-to-business structure (*****, Gargeya, *****). ***** company also completed this re-organization for corporate accounts ***** ancillary businesses as well. As part of the re-organization, Amex placed its U.S. Card Services unit (USCS) and it's *****ternational ***** 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 ***** ***** company, USCS is the most ********** as it concentrates on the issuance of cards to consumers and the offer*****g of services to ***** ***** in the U.S. through *****, and since the reorganization, ********** (Taube, Gargeya, 2007). As part ***** ***** re-organization the company has also integrated in *****s Travel Related ***** (TRS) ***** with its U.S. banking subsidiaries ***** include the icon of their brand, their consumer charge *****. From the classic green American Express personal card, to ***** American Express Gold, Platinum and Centurion Card, to the revolving cards including Blue with is the processor ***** Optima, this division manages ***** accounts. What is remarkable is that ***** average spending $8,360 per Amex card ***** four times that of competi*****r Visa's average spending 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 ***** the upper *****come segments ***** the American credit card market, and ***** shows significant potential for global growth ***** affluent *****. To continually pursue global ***** ***** company contracted in 2007 with Harrods to offer a cus*****mized American Express card for that store as ***** (Taube, *****, 2007). Amex realized that in addition to these customized *****s, the need to *****cre*****e the number of redemption services was also critical, and as a result they *****dded 1,400 redemption partners globally since the reorganization (*****, Gargeya, 2007). This network is comprised ***** 80 different ***** in each country ***** only a fourth of them in the travel industry (McClellan, 2007). One of ***** strategic objectives as defined in the ***** study ***** apparent from subsequent research is the development ***** ***** Global Commercial Services

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