how Amex comeback in market strategy

1. PRESTIGE INSTITUTE OF
MANAGEMENT & RESEARCH

2. Contents
• Case Introduction
• Problem Identification
• Case Study Questions
• Conclusion

3. CASE STUDY: AMERICAN EXPRESS
The following case is of American Express company, which is one of the most recognised &
respected corporations in the world. This case shows the journey of the American Express from
the days of inception to the days of boom & beyond. The case highlights key events which took
place in the journey of American Express Like ->
• How Company was formed
• How Company dropped delivery express business & moved into financial services
• How Company became leader in the premium credit card market
• How it faced tough competition from other corporate companies
• What strategies Amex took in order to counter its barriers
INTRODUCTION

4. Problem for Amex in this case study are 
• Started getting competition from Visa & Mastercard corporations(as a result, market share got
impacted).
• Entry of Visa/Mastercard in the Premium Market Segment by the introduction of Premium Gold Cards.
• Slow Growth in the Foreign Market due to the presence of local competition
• Difficulty in entering some foreign market due to complex banking restrictions.
PROBLEM IDENTIFICATION

5. Case Study Questions
1. What are the strengths, weaknesses, opportunities and threats faced by Amex?
2. What Elements of the general and task environments are most relevant to Amex?
3. Evaluate the goals Amex has set for 1997.
4. What barriers might exist to reaching the goals? How might those barriers be
overcome

6. STRENGTHS
• Brand Value of the company
• Pioneer in the Credit card Business
• Market Leader in the Premium Credit Card Segment
• Excellent Business relations with other corporates.
• Status Symbol
• Offers additional services to it’s customers(mutual fund/life
insurance
• Offered Traveller’s cheque facility to its customers
Q1- AMEX SWOT ANALYSIS
WEAKNESSES

7. OPPORTUNITY
• Huge Middle Class Customer Base
• Opportunity in the Foreign Market(Italy & France
according to the case).
Q1- AMEX SWOT ANALYSIS
THREATS

8. Q2- GENERAL & TASK ENVIRONMENT FACTORS
PRESENT IN THIS CASE STUDY RELATED TO AMEX
GENERAL ENVIRONMENT
FACTORS
POLITICAL
FACTORS(BANKING
RESTRICTIONS IN THE
FOREIGN MARKET)
ECONOMIC
FACTORS(LARGE
MIDDLE CLASS
CUSTOMER BASE)
INTERNATIONAL
FACTORS(FOREIGN
MARKET
OPPORTUNITY)
TASK ENVIRONMENT
FACTORS
CUSTOMERS(MIDDLE
& UPPER CLASS)
COMPETITORS(VISA/
MASTER CARD)
GOVERNMENT
REGULATIONS

9. 1. Double the world card base to 60 million members.
2. Triple the Merchant base to 6 million
3. Quadruple the annual charges to $300 billion.
4. Maintain the card’s image of prestige and status.
Q3- GOALS SET BY AMEX(1997)

10. Q4 - BARRIERS OF AMEX
BARRIERS
• Competition from the Visa/Mastercard in the Premium
Segment
• Local Competition presence inside some foreign market
• Difficulty in entering in some of the foreign market due
to complex banking restrictions.
SOLUTION

11. American Express can certainly achieve its goals that they sat for the year(1997) & overcome its
barriers by –
• Increasing Customer base by entering new market segment
• Building relationships with more Merchants & Banks
• Increasing their presence in the corporate world by entering into lucrative foreign markets.
• Provide more offers & services to its customers.
CONCLUSION
CONCEPTS USED IN THIS CASE BY
AMEX
PLANNING, STRATEGY, GOAL SETTING, ANALYSIS

12. THANK YOU