...American Express Company (NYSE: AXP) or AmEx, is an American multinational financial services corporation headquartered in Three World Financial Center, Manhattan, New York City, New York, United States. American Express was initially founded by Henry Wells and William Fargo in 1850. Wells and Fargo wanted to expand the company to California, but the directors of American Express opposed the idea, as an incumbent express company had a strong position in California at the time. So Wells and Fargo decided to go it alone and start another company of their own namesake in 1852. The company was then organized as an express mail and banking company, but would later expand into money orders and traveler’s cheques. Today the business derives most of its revenue from discount fees it charges merchants in addition to cardholder fees. The companies’ moat is secured by the network effects it has built over the past 50 years. American Express describes their international credit charging network as a “closed loop” in their financials. Late in 1963 a salad oil scandal occurred when an American Express subsidiary found itself possibly liable for hundreds of millions of dollars worth of claims arising from quantities of salad oil that turned out not to exist. An American Express subsidiary that issued warehouse receipts mistakenly certified the existence of huge quantities of salad oil that had been fraudulently confirmed to it as being in tanks in Bayonne, New Jersey. The crisis could...
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...Visit the American Express web site (www.americanexpress.com) to learn more about the different cards that American Express offers. Select three of the macro environmental forces discussed in the chapter. How do the different card options reflect the changes in those forces? • The three macro environmental forces are the following: Demographic Environment: American Express issued their first card back in 1958. They only had one card for everyone. But as time changed, population increased and so did the consumer needs. American Expressed produced different cards to meet consumer needs. American Express offers many different card options for personal and business use, as well as cards geared towards the young, and wealthy. Economic Environment: American Express has adjusted its marketing trends with the changing economy. They generally do not influence any law, it is continuously changing, therefore becoming flexible in order to adapt to the changing environment and customer demands. They have developed cards for personal use, travelling, business purposes and this gives customers a vast choice to choose for their different spending types. Technological Environment: Although there may be competition and rivalry in a market, Globalization means that there is always the threat of substitute products and new competitor. With a wider environment and constant change, the marketer’s need to compensate for changes in culture, politics, economics and technology. American Express has given...
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...American Express is the one of the most popular financial company since it started. According to Nelson & Quick (2011), American express (AmEx) was founded in 1850 and started to provide freight forwarding and delivery services around the world and since then it is also known as global financial services company (p. 215). The company is well known for various financial services such as credit card, charge card, and travelers’ check. Maulik Vyas (2011), explained Amex cards hold around 24% of the total dollar volume of credit card transactions within the US. It is the highest of any card issuer so far. American Express has about 65,000 employees around the world to enhance the quality of service. To increase the superiority of humongous amount of employee Amex established American Express Learning center, where employee get training to increase their quality. Analysis American Express set up a learning center for the employee to improve the service of quality which is called American Express Learning Network (AELN). AELN’s customer service training program provided two types of application theories, one is learning theory and another is goal setting theory. The aim of AELN is to train their each employee to provide great customer service to existing customer and future customer. According to Harrison, AELN’s vice president (VP), primary learning for customer care employees, how they are introducing themselves toward customer and how they make sure customer that security...
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...Introduction The American Express Company (American Express) was established in the year 1965 as an international finance and travel business company. The main products and services of the company include credit cards and travel related cards and services which are provided to various consumers all over the world. American Express Company has an operating subsidiary called American Express Travel Related Services Company, Inc., (TRC). Both these companies are bank holding companies. The four basic segments in which the company offers services to its clients include U.S. Card Services, International Card Services, Global Commercial Services and Global Network and Merchant Services. The various products of the company include credit card products, consumer and business travel services, stored value products like traveler’s cheques, prepaid cards, network services, expense management products and services, marketing information products, fee services, fraud prevention services, customized products for clients. At the end of the year 2010, the company has acquired Accertify Inc., a company which provides services to traders regarding online frauds and not present card transactions. The paper discusses in detail the various products and services provided by the company Global Network and Merchant Services The Global Network and Merchant Services (GNMS) division functions an international all-purpose and common objective charge and credit card network for the cards issued under...
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...Visit the American Express Web site (www.americanexpress.com) to learn more about the different cards that American Express offers. Discuss the target market and positioning strategies for each. * How has American Express been able to maintain a competitive advantage throughout the many years of existence? * How has American Express been able to help consumers shift their attitude toward usage of the card? Is American Express taking a proactive approach to managing its marketing environment? How? Halfway down the homepage of the American Express website, there are four credits cards offered. The ones that are offered include personal cards, small business cards, corporate cards, and prepaid cards (American Express, 2015). There is actually a short quiz you can take with only three questions. I took it in less than 10 seconds and it told me that the Blue Cash Everyday Card as well as the TrueEarnings Card from Costco would be my best fit. In my wallet, you will actually find the Blue Cash Everyday Card. There are three featured personal cards available, but when you click on “View All Cards” there are a lot more with company partners and features. The quiz asks about preferred benefits, what form you’d like the rewards, and your total annual income. Until this assignment, I did not know there was a difference between a charge card and a credit card. Whatever card a consumer chooses would depend on their spending habits, what they prefer as their rewards, and which...
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...American Express Marketing Shay Torok BSA/310 Rassoul Alizadeh 10/28/2013 American Express Marketing Shay Torok BSA/310 Rassoul Alizadeh 10/28/2013 Early Years American Express was founded in 1850 by Henry Wells and William Fargo, the founders of Wells Fargo Co. The company was first used as an express mail business in upstate New York. Quickly, American Express, also known as AmEx, began monopolizing the shipping industry and eventually moved its location to the Financial District of Manhattan. In 1882, AmEx began offering financial services such as money orders. October of 1958, AmEx started distributing charge cards, today known as credit cards. From that day forward, AmEx became a financial guru and head of the industry. Today, AmEx is the world’s largest card issuer by volume and one of the most well-known name within the financial services community. Types of Research To get where they are today, American Express would need to have excelled in marketing strategies. The main component of these marketing strategies are research. There are two main types of market research; qualitative and quantitative. Let’s take a look at qualitative research first. Qualitative research consists of gathering detailed information by interviewing individuals or utilizing focus groups and the questions asked are usually open-ended. “Open-ended interviews are composed of questions that cannot be answered with a simple yes or no. This type of interview gives you a lot of...
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...Corporate Governance at American Express By Ahmet Emre Kuzudisli BUS 707 – Corporate Governance 8130 Boone Blvd Suite 240 Vienna, VA 22182 (571) 721-0934 aemreku@gmail.com Instructor: Dr. Shawn P. Richmond Washington Baptist University, Fall 2014 ABSTRACT This project will serve as a research and report of corporate governance at American Express. The company, founded in 1850, is 124 years and is ranked #67 on Fortune’s list of Best Companies 2014 (Fortune, 2014). There are so many perks of working at American Express such as paid 28 day vacation, Hyatt legal services and educational assistance. After one year employees are able to get 6 weeks of paid vacation following the birth or adoption of a child. TABLE OF CONTENTS Introduction 4 Corporate Background 4 Products/Services 4 Vision/Mission Statement 4 Rank/Industry 4 Jobs/Pay 4 Benefits/Health 4 Board of Directors 4 Analysts 4 Creditors and Credit Rating Agencies 4 Securities and Exchange Commission Reports 4 Risks 5 Corporate Citizenship 5 Conclusion 5 References 6 Introduction This paper will serve as a report on American Express, one of the best companies for employees in 2014. The corporate governance at American Express is highly professional and impressive this is why they are ranked #67th position in all over the world in 2014. This paper will represent how this well-oiled machine works...
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...Costco and American Express terminate a 16 year old business partnership Costco, a wholesale retail giant and American Express, a financial services corporation, recently announced that they would be ending their contract. According to the terms of their agreement, American Express was the sole credit card accepted at Costco. Additionally, American Express and Costco had issued a co-branded TrueEarnings credit card, which could also be used at other stores. After March 31, 2016, customers will no longer be able to use American Express credit cards in Costco. The TrueEarnings credit card will also be discontinued [1]. From a marketing perspective, this could have several consequences for both firms. What are the implications for each company's brand with this decision? American Express’s brand image has been adversely affected with the termination of its contract with Costco. There are several factors that contribute to the same. • Low confidence of Costco in American Express’s brand: The termination of the contract, albeit from a financial perspective, implies that the exclusivity that American Express had commanded has ceased to exist. Costco clearly sees no benefit in being associated with American Express’s brand, which may result in declining confidence among American Express customers, particularly those associated with the TrueEarnings card. • Declining status symbol: An erstwhile force in the credit card industry, American Express currently faces stiff...
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...Marketing Excellence—American Express Jeff Rock Abstract The paper discusses the expansion of American Express into new market segments. The positioning and timing of this gives the business distinct advantages over competitors. The core business is as strong as ever and continues to deliver value to consumers and profitability to the company. The brand is well placed and will likely increase in value with the addition of under an unserved market segments. Marketing Excellence—American Express Evaluate American Express in terms of its competitors. How well is it positioned? How has it changed over time? In what segments of its business does American Express face the most competition? American Express (AmEx) has expanded services over the past few years which expands lines of business and positions the company very well. The following excerpt from a Business Week article illustrates a major move to establish a new funding stream in banking. “American Express (AXP) has partnered with Wal-Mart Stores (WMT) on its newest product, a prepaid debit card, Bluebird, that’s now on sale in 4,000 outlets nationwide. AmEx has calculated the gains are worth the risk to its gilded brand. If Bluebird proves popular, it won’t just capture more swipe fees for AmEx. It will also accelerate a remarkable, and largely overlooked, shift: American Express is no longer just a charge-card company. AmEx has become a bank—offering a growing list of services that now includes savings accounts...
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...Jake Wright HW #1 6/23/14 Answer the following two questions based on The American Express Card Case: 1. American Express was able to expand its merchant mix over time despite charging merchants a higher discount rate than Visa and MasterCard. Why were merchants willing to start accepting American Express cards? Merchants were willing to start accepting American Express cards because of the patrons that were associated with those cards. The case mentions that the annual average purchase volume for an AmEx card holder ($8,360) was substantially higher than that of Visa or Mastercard, $2470 and $1960, respectively. This meant that the AmEx card holders were more likely to spend more at locations. AmEx used the higher discount rates to study the purchase habits and inclinations of card holders. These studies led to more targeted promotions, which allowed merchants who accepted AmEx to bring in more patrons who were more likely to purchase more at their locations. 2. How does American Express create and sustain a key competitive advantage over major competitors such as Visa and MasterCard? In order to create and sustain a competitive advantage over its competitors AmEx targeted a certain customer and their “lifestyle.” Instead of targeting customers that were transaction oriented, AmEx targeted customers that were “high wallet” consumers, with spending of over $30,000. These consumers were identified as travelers, liked to be different and liked special...
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...The credit card world is changing along with the 21st Century and leading the way is American Express (AmEx) by offering a first-of-its-kind innovation by partnering with four external environment television networks. The four ways AmEx is externally reaching diversity is through a T-Commerce Program with FOX Broadcasting Company, NBCUniversial & Zeebox, BrightLine, and Shop Small Provincetown (Forbes). AmEx is strengthening their clients’ shopping experience at their fingertips, with access to purchasing items on phones and computers, which also includes thirty-second commercials launched across all gaming consoles, tablets, telecom companies’ satellites and cable to reach their diverse consumer ("America Express News: Press Release.", 2012).. Targeting ranges from mothers and teens to Hispanics, members of the LBGT (lesbian, gay, bisexual, and transgender) community and many other diverse groups of people (Forebs). AmEx is reaching the people who drive their company forward by finding out who has more pull in the purchase decisions made in a particular household. They also analyze how certain age groups purchase their merchandise, how to advertise to those who need support in purchasing a product, and more importantly partnering and sponsorships with Human Rights Campaign (Forbes). Through the partnership with the four companies, AmEx helps to reach their consumers more easily, and make purchasing more accessible. Partnering with a broadcasting company opens many...
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...American Express Chairman/CEO Influence and Outcomes 7/30/2011 TABLE OF CONTENTS American Express Overview 3 James D. Robinson 3 Success and Failures of Robinson 3 Board Of Directors 4 Decisions Required 4 Candidates for CEO Position 5 Robinson’s Strategy 5 Decisions Of The Board 5 Problems Faced By American Express 6 Solution 7 Lessons Learnt 7 References 7 AMERICAN EXPRESS OVERVIEW American Express Company (American Express), incorporated in 1965, is a global service company The Company’s principal products and services are charge and credit payment card products and travel-related services offered to consumers and businesses around the world. American Express Company and its principal operating subsidiary, American Express Travel Related Services Company, Inc. (TRS), are bank holding companies. It is principally engaged in businesses comprising four reportable operating segments: U.S. Card Services, International Card Services, Global Commercial Services, and Global Network & Merchant Services. Its range of products and services includes charge and credit card products, expense management products and services, consumer and business travel services, stored value products, such as Travelers Cheques and other prepaid products, network services, merchant acquisition and processing, point-of-sale, servicing and settlement, and marketing and information products and services for merchants, and fee services, including market...
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...Introduction It is crucial for a contemporary organization to have a marketing department that understands their crucial role in being able to market their product successfully and therefore profitably. The two major organizations discussed will be Lipton and American Express. Here, there will be a discussion of the two contrasting products; a 500ml bottle of Lipton Peach Ice tea and an American Express Platinum Credit Card. These two products will be compared and contrasted to one another in terms of product description, classification and segmentation. Product Description When a marketer sells a product, they must take into consideration the three levels of a product; the core, the actual and augmented. Kotler et al. (2007) describes the ‘core product’ as core benefits which act as problem solving services that consumers are buying when they attain a product. The ‘actual product’ is a combination of the product’s features, styling, quality, branding and packaging. And lastly, the augmented product is the additional consumer services and benefits which are included to increase competitiveness. With Lipton Peach Ice Tea, the core product is that it is a drink; a benefit to quench thirst. It also has a core benefit of social acceptance, as there may be a perception that those who drink Lipton Peach Ice Tea are ‘cool’. Also, the ice tea is convenient as it is easily bought and managed. The actual product features of the Lipton Peach Ice Tea are that it is a refreshing...
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...American Express Strategic Planning FIN/370 April 23, 2015 American Express Strategic Planning A large part for any success of a company is planning. Effective strategic planning is necessary for any company to acquire financial growth and American Express shows to investors and the public they are able to achieve such success. Their “closed-loop” and “spend-centric” business models show they remain competitive with bankcard networks because they acquire and handle all aspects of credit card transactions from the cardholders end and the administrative end. “Closed-loop” allows for this company to monitor spending habits and to build algorithms and analytical tools which allows American Express to offer special deals to prospective clients and existing cardholders. “Spend-centric” deals with ways to generate revenue by using attractive finance rates and fees which in turn encourages cardholders to spend more than bankcard holders (American Express Company, Form10-K). Financial planning affects American Express uses Global Network & Merchant Services (GNMS) to incorporate merchants using the Closed-loop network and be able to offer multi-channel marketing programs to merchants worldwide. By doing this, American Express broadens their capabilities to acquire new merchants accepting the American Express card and acquiring new cardholders allowing for more purchases, loans, and fees. Their presence is seen in places that otherwise would be unattainable solely in...
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...Introduction: American Express 3 II. Overview of Organization: Background 3 III. Organizational Design 4 IV. Scope of Operation 5 Vision 5 Values 5 Operating principles 6 Board of directors 7 V. Current Operation State 8 VI. Desired State of American Express 10 VII. Developments 12 Risk and informational management 12 Strategic planning group 13 Human resources 13 Technology 13 VIII. Program Design and Development 14 Objectives of the program 14 Incorporate site visits by management 14 Training and seminars 14 American Express will Focus on the Development of Employees 16 Incorporate Site Visits by Management 16 Training and Seminars 17 Steps to continue the essence of customer service 18 Assessment 19 Employee feedback 19 Data analysis 20 Creating training manual 20 The use of technology 21 IX. Recommendations 22 Performance appraisals 23 Motivating Employees 24 Training employees 25 Continuous improvement 27 X. Conclusion 28 XI. References 29 I. Introduction American Express hired our consulting team to create effective training and development program to sustain the company’s success and growth. One of the departments American Express would like to concentrate on is the Customer Service Call Center. Currently American Express does not have formalized organization-wide training and development process. This paper will summarize American Express’ organizational...
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