American Express Redefines Its Strategy




Case Details Case Introduction 1 Case Introduction 2 Case Excerpts

ABSTRACT

In February 2014, American Express launched a new credit card targeted at students and housewives called ‘Amex EveryDay Credit Card’. American Express had also launched some other products like Serve and Bluebird as part of its new strategy to expand its reach to the mass market. Since the time when American Express entered the financial services business, the company limited its focus on a limited number of affluent customers and operated a closed-loop network.

It charged higher commissions from merchants than other card companies as it offered them access to rich customers with higher spending power. However, the company started facing new competition from other players in the market since the mid-2000s. Credit card companies and banks started offering premium cards which offered similar features to that of the cards from American Express. Online payment processing companies like PayPal gave heavy competition to American Express with their cheap and safe payment solutions.

Business Strategy Case Studies | Case Study in Management, Operations, Strategies, Business Strategy, Case Studies
or
Business Strategy Case Studies | Case Study in Management, Operations, Strategies, Business Strategy, Case Studies
or
PayPal (7 USD)

Issues

The case is structured to achieve the following teaching objectives:

  • Challenges faced by market leaders in their areas of business
  • How market leaders can face competition from new entrants into the market
  • Need to change business strategies depending upon the changing market conditions
  • Impact of latest technologies on the business models of companies
Contents
INTRODUCTION
AMERICAN EXPRESS- BACKGROUND NOTE
GLOBAL PAYMENT CARD INDUSTRY
BUSINESS MODEL OF AMERICAN EXPRESS
NEW CHALLENGES
CHANGING BUSINESS STRATEGY
BANKING BUSINESS
IMPACT ON THE BRAND VALUE
OUTLOOK
EXHIBITS

Keywords

American Express, Credit Cards, Charge Cards, Brand Value, Visa, MasterCard, JPMorgan Chase & Co., Online Payments, Banking, Financial Services, Traveler’s Cheques, Centurion Card, Business Model, Serve, PayPal

INTRODUCTION - Next Page>>