Swot Analysis Of American Express

Superior Essays
Environmental Scan: Specific Environment
Current Rivalry
The existing competitors of American Express include Discover Financial Services, Visa, Inc., and MasterCard Worldwide. Unlike American Express and Discover, Visa, and MasterCard do not finance, which means these companies are intermediaries and “they don’t directly finance credit card transactions” (Thangavelu, 2015). That being said, Discover is more in American Express’ strategic group because they both issue cards and work within the same strategic group, so American Express and Discover compete more directly.
Potential Entrants
Not only are there current rivals in every industry, there is always the threat and opportunity for potential entrants to come into the industry. But not
…show more content…
They have differentiated themselves and established a very loyal customer base. Usually if a company doesn’t have a differentiated product, the consumers have a lot of bargaining power. The only other credit card company that is comparable to American Express is Discover in that it actually issues the cards as well. On the other hand, since the customer has the final say in whether they purchase something or use their credit card to spend with, this choice is linked directly to American Express’ revenues. If customers aren’t using their cards and making high-priced purchases, it directly impacts American Express’ profits, which will lead to the company creating incentives and rewards for the customers to make them want to spend and purchase more, which in turn creates more of a high bargaining power for …show more content…
Some substitute products may include cash, checks, and online activity. The one main substitute to credit cards is the presence of online and mobile activity. Today, technology has allowed society to create and innovate new alternatives for just about anything. People have to ability and option to pay for goods and services online or on their mobile devices, which means no contact with a credit card. The main company in this market is PayPal. Considering that PayPal already exists, there is a lot of opportunities with all of the technology we have for other online companies like this to emerge. Although this opportunity exists, right now PayPal is really the only one substitute for credit card companies. Since there are only a few alternatives, there is not a high threat of substitutes for American

Related Documents

  • Great Essays

    Chase Case Study

    • 2210 Words
    • 9 Pages

    The company I have selected to evaluate for its Corporate Social Responsibility (CSR) is Chase. This powerful banking organization has been a cornerstone in the banking world for years and given the already tepid public opinion towards wealthy institutions it is no wonder that Chase has been listed on American 's list of the most despised companies. Recent developments have not aided their case. In the ensuing essay, I will evaluate various aspects of the business as well as explain where this hatred is stemming from.…

    • 2210 Words
    • 9 Pages
    Great Essays
  • Improved Essays

    Company Overview History Dollarama is a Canada only retail store corporation best known for having $1.00 items. With having over 900 stores, Dollarama is the leading dollar store in Canada. The head office of Dollarama is located in Montreal, Canada. The first Dollarama store opened in April, 1992, in Matane, Quebec (Dollarama Inc. 2015). In 1994, Dollarama opened their first store in Ontario.…

    • 755 Words
    • 4 Pages
    Improved Essays
  • Improved Essays

    The 1985 American Express card commercial starring the famous author Stephen King is particularly effective in its cleverness to full audiences. The ad relies strongly on the fallacy of appeal to authority and the scare tactic of the unknown. Urgency and fear have been created ingeniously in its tone and imagery. Although the ad does strongly use this fallacy and an underlined emotion of fear to persuade its audience, the result is enormously effective.…

    • 954 Words
    • 4 Pages
    Improved Essays
  • Superior Essays

    SWOT Analysis: Geico

    • 1000 Words
    • 4 Pages

    Internal Perspective & Results Geico is committed to having the lowest cost insurance without sacrificing any quality. While there is no “average” cost for the car insurance plans because each customer’s plan is different, a study shows that Geico has the lowest cost auto insurance plan at $1,297 per year which is significantly lower than that of some of their competitors. In comparison, Geico’s number one competitor, State Farm, has an average plan cost of $2,296 (Glenn, 2016). Having a low cost is Geico’s main competency, so having a competitive price for their car insurance plans is one of the most important things for their success.…

    • 1000 Words
    • 4 Pages
    Superior Essays
  • Improved Essays

    Ken wants to be the | | |region’s leading healthcare organization. | | |Highmark has an excellent reputation as providing quality and | | |affordable healthcare. | | |Highmark has an opportunity to capitalize on | | |the individual strengths of its employees and is | | |one of the nation’s largest insurance companies. One of the major |…

    • 2708 Words
    • 11 Pages
    Improved Essays
  • Superior Essays

    Introduction SWOT analysis is the strategic plan that allows a company to establish the strengths, weaknesses, opportunities, and threats that affect an enterprise. This entails the identification of an organizations objectives and the determination of the external and internal factors that are both favorable and unfavorable. SWOT analysis allows an organization to plan on the strategies to be adopted to promote organizational performance. Home depot and Lowe 's Companies Inc. are among the biggest home improvement retail chains in the United States necessitating the development of a SWOT analysis to differentiate the two companies and their performance. Home depot Inc. is among the world biggest home improvement retailer.…

    • 1452 Words
    • 6 Pages
    Superior Essays
  • Improved Essays

    If the rivalry is greater they will have a lot of compensations that you will not because of their measure and magnitude. On should not contend on those intensities. Identify that one could have a great deal of impending to be improved and sturdier in behaviors that others cannot. Most likely one are additional sprightly and prepared to make alteration and acclimatize to tendencies and purchaser requirements and you can attach on an additional individual level with consumers. One should utilize these alterations to your benefit and contend as a dissimilar…

    • 1595 Words
    • 7 Pages
    Improved Essays
  • Superior Essays

    Chick-Fil-A Case Study

    • 710 Words
    • 3 Pages

    What is Google Wallet/Apple Pay and what do they do? Google Wallet is a phone application that allows consumers to use coupons, credit cards, to make transactions without having to swipe your credit card (Digital trends. Web). Similarly, Apple Pay uses the same platform for their customers through their apple owned devices such as the iPhone 6, iPhone 6 Plus, iPhone SE, and apple watch. In addition, all devices must be NFC compatible and contain an NFC chip.…

    • 710 Words
    • 3 Pages
    Superior Essays
  • Decent Essays

    Target Corporation’s sales in January 31, 2015 to January 30, 2016 increased from $72,618 to $73,785. However, there was a major downturn of $73,785 to $69,495 from 2016 to 2017 respectively. The earnings from continuing operations before interest expense and income taxes of Target Corporation also grew from 2015 to 2016 but plummeted from being $5,530 in 2016 to $4,969 in 2017. Furthermore, the earnings from operations before income taxes in 2015 was $3,653 and later on increased in 2016 with a value of $4,923. Moreover, the net earning from Target Corporation’s continuing operations was also increased from 2015 to 2016 which means that Target did a superb job in doing their required tasks for servicing the customers.…

    • 152 Words
    • 1 Pages
    Decent Essays
  • Great Essays

    Competition surrounds everyone. Whether it be in School, at a job, or a company, competition is found. Nowadays we see students slaving away to be the best in the class, to feel noticed. In a job, we see people sabotaging one another's work, competing to get the position. With companies, we see them fighting each other over who can make the most money.…

    • 1435 Words
    • 6 Pages
    Great Essays
  • Improved Essays

    In American Express case, a group of small business merchants brought a class action in court, claiming that American Express is violating antitrust laws with a binding arrangement by using its control power over charge cards to force merchants to take all their credit cards and pay higher fees. The merchants sought to pursue claims against American Express jointly in a class action lawsuit (Olson, 2015). American Express progressed to force the case into individual adjudication with no class action possible. The retailers obtained evidence which showed that the costs of an individual arbitration would have been many times more than the possible maximum amount of damages that each would recover.…

    • 337 Words
    • 2 Pages
    Improved Essays
  • Improved Essays

    Swot Analysis For Costco

    • 908 Words
    • 4 Pages

    SWOT, Gap Analysis, and Needs Assessment for Costco Melissa Pommerening DeVry University Company Information Costco is best known for being a huge membership warehouse which sells bulk items to the masses. In 1983, the first Costco warehouse opened its doors in Seattle, and since then the business has grown to 686 stores in the United States and nine international locations. Merging with Price Club in 1993, the flagship warehouse company which opened in 1976 (Costco.com, 2014), ultimately expanded Costco’s hold in the warehouse business.…

    • 908 Words
    • 4 Pages
    Improved Essays
  • Great Essays

    Starbucks Case Study

    • 2837 Words
    • 12 Pages

    Its partnership with Apple to bring app based discount coupons is helping it ride the mobile wave easily. The company introduced Wi-Fi capabilities in its outlets already. Internet is important to the consumers. They can now surf the web and do work while sipping Starbucks coffee.…

    • 2837 Words
    • 12 Pages
    Great Essays
  • Improved Essays

    __________ involves the evaluation of strengths and weaknesses, which are internal factors; and opportunities and threats, which are external factors. a) Strategic analysis b) Business performance c) Operational planning d) SWOT analysis 40. Price wars or other fierce reactions by competitors are examples of: a) strengths. b) weaknesses. c) opportunities.…

    • 2146 Words
    • 9 Pages
    Improved Essays
  • Great Essays

    11.0 The strategic position of the organisation Level 1- Generic strategy Amazon generic strategy for competitive advantage is differenciation. As an example, Amazon is the only e-commerce company which does not outsource its fulfilment and distribution. It is in fact working to expand its distribution and logistics so as to cater the needs of more customers especially those prime member.…

    • 1187 Words
    • 5 Pages
    Great Essays