American Express Strategy
AMERICAN EXPRESS
A STRATEGIC ANALYSIS OF AMERICAN EXPRESS FRANCE’S
CONSUMER AND SMALL BUSINESS PRODUCT LINES
Manant Maheshwari, Felipe Mariategui Torres | Strategy | October 21, 2013
Table of Contents
ABSTRACT.............................................................................................................................................. 2
AMERICAN EXPRESS: BRIEF OVERVIEW ........................................................................................... 3
PESTEL ANALYSIS ................................................................................................................................. 5
RELATIVE ANALYSIS OF AXP: PORTER’S COMPETITIVE FORCES .................................................. 7
SWOT ANALYSIS OF AXP: A STRESS TEST ......................................................................................... 9
CONSOLIDATED ANALYSIS OF THE SITUATION............................................................................. 11
PAGE 1
ABSTRACT
This paper aims to analyze AXP’s strategy and key success factors in France for their charge cards portfolio for private consumers and small businesses and the road ahead. AXP has consistently dominated its competition worldwide with high customer satisfaction, led by its strong value proposition and bundled services. However, today, with the changing environment where plastic money is no longer a luxury or comfort but an everyday necessity, AXP’s narrower merchant base and costs associated with owning an American Express card have significantly hampered the firm’s growth prospects in the private consumer segment.
This paper draws on data collected through primary and secondary research and also Manant’s personal experience during his internship at American Express Cartes
France between August 2012 and February 2013.
PAGE 2
AMERICAN EXPRESS: BRIEF OVERVIEW
American Express (AXP) is the world’s best-known brand for financial services and
A STRATEGIC ANALYSIS OF AMERICAN EXPRESS FRANCE’S
CONSUMER AND SMALL BUSINESS PRODUCT LINES
Manant Maheshwari, Felipe Mariategui Torres | Strategy | October 21, 2013
Table of Contents
ABSTRACT.............................................................................................................................................. 2
AMERICAN EXPRESS: BRIEF OVERVIEW ........................................................................................... 3
PESTEL ANALYSIS ................................................................................................................................. 5
RELATIVE ANALYSIS OF AXP: PORTER’S COMPETITIVE FORCES .................................................. 7
SWOT ANALYSIS OF AXP: A STRESS TEST ......................................................................................... 9
CONSOLIDATED ANALYSIS OF THE SITUATION............................................................................. 11
PAGE 1
ABSTRACT
This paper aims to analyze AXP’s strategy and key success factors in France for their charge cards portfolio for private consumers and small businesses and the road ahead. AXP has consistently dominated its competition worldwide with high customer satisfaction, led by its strong value proposition and bundled services. However, today, with the changing environment where plastic money is no longer a luxury or comfort but an everyday necessity, AXP’s narrower merchant base and costs associated with owning an American Express card have significantly hampered the firm’s growth prospects in the private consumer segment.
This paper draws on data collected through primary and secondary research and also Manant’s personal experience during his internship at American Express Cartes
France between August 2012 and February 2013.
PAGE 2
AMERICAN EXPRESS: BRIEF OVERVIEW
American Express (AXP) is the world’s best-known brand for financial services and