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American Express Corporation Analysis

Xiaoxi Yue

Professor Minji

American Express Corporation analysis

American Express Corporation is an American multinational financial services entity with headquarter in New York City in the United States. The company is also known as Amex, and it operates in the Banking Financial services industry, where there are other competing companies (American Express Company SWOT Analysis, 2019). The primary aim of this article is to critically conduct a SWOT analysis of American Express Company to help to solve marketing problems that the entity face when performing its business activities.

Analysis of American Express Corporation and its industry

American Express Corporation is a financial institution which deals in an extensive range of products and services. The main products and services of the company are credit card products and charge and other travel-related services that aim at satisfying the needs of their clients (Havercome & Mujtaba, 2015). The company sells its products and services to various groups of clients from different parts of the world. The company has multiple segments that help it to market and sell its product and services. Below are some the main segment of American Express Company and among others. The company uses different marketing strategies to market and sell its product. Besides, American Express Company operates in a competitive industry with many competing firms that use different marketing strategies to increase their market share. Some of the company's top competitors are Discover, VISA MasterCard, Bank of America US Bank, among others.

American Express Corporation SWOT analysis

American Express Corporation operates in a competitive industry with many competing firms that offer a variety of products and services to potential clients. As such, the company has strength, weakness, opportunities, and threat that determine its operations.

Strengths of American Express

Brand strength is one of the advantages the company enjoy in its industry. Currently, American Express has the privilege of being among the treasured brands all over the world. The latter is one of the internal strength that has enabled the company to increase its market share in its industry.

Employee strength and market capitalization are other advantages also different strengths of the company. The company has a high number of employees, and the level of their satisfaction is relatively high compared to those of its competitors (Hickman & Silva, 2018). On the other hand, the company has a more significant market capital, unlike its competitors. This has enabled the company to perform all its operation more efficiently without financial difficulties. As such, this has enabled the company to one of the top financial services providers in the world.

Furthermore, the status symbol is another strength for the company. American Express symbol is always obtained only by extremely high net worth persons who offered the credit card. The latter implies that not everybody is given the advantage to possess the card. International usage of the company's cards is also another strength that has enabled the company to have a definite competitive advantage in the global markets.

Weaknesses of American Express

Even though the company is one of the leading companies in the world, there is some internal weakness that has been reducing the performance of the company. First, the company lacks debit cards, which have reduced that effectiveness of its operation in the global. Lack of other products is another weakness of the company (Hickman & Silva, 2018). American Express product line focuses on a few primary products which can profoundly affect its performance in case of low demands.

Opportunities

Expansion and innovation schemes are some of the significant opportunities for the company. Seemingly, there is a vast space in the market extension for the company. However, it does not have a strong presence that can enable it to get competitive in the global market. Besides, innovation schemes provide more attraction to the company's customers; this seems an opportunity for better completion (Hickman & Silva, 2018). Moreover, leveraging financial branding equity is also an opportunity that can enable to rebuild its marketing strength in the global markets. The leverage of the company offers more financial products, this increasing more turnover to the company.

Threats of American Express

Competitors in the global markets are one of the significant threats for the company. Visa and MasterCard are some of the company's major competitors that are popular and commonly used in any part of the world (Hickman & Silva, 2018). Nature of the business is another threat to the company. Since the company mainly deals with financial services, the volatility of economic condition leads to significant effects in its operations.

According to MarketLine Company Profile: American Express Co. (2019) for the company to remain one of the leading financial institutions in the global markets, the management should increase usage of debit cards in different parts of the world. Increasing the penetration of these cards will significantly widen the company coverage as well as providing a significant market share for the company. Additionally, the company should also increase the branding strategies of its products to make its product unique and more value compared to those of its competitors. In doing so, the company will attract more customers.

References

American Express Company SWOT Analysis. (2019). American Express Company SWOT Analysis, 1–9. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&db=buh&AN=135466847&site=ehost-live

Havercome, C., & Mujtaba, B. G., (2015). Effectively managing employees to get results in a diverse workplace such as American Express. Journal of Business Studies Quarterly, 7(1), 13.

Hickman, C. R., & Silva, M. A. (2018). Creating excellence: Managing corporate culture, strategy, and change in the new age. Routledge.

MarketLine Company Profile: American Express Co. (2019). American Express Company MarketLine Company Profile (pp. 1–49). Retrieved from http://search.ebscohost.com/login.aspx?direct=true&db=buh&AN=135473577&site=ehost-live Alexander, V.,