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American Express

Student:

Niculescu Dana

BA, YEAR 3, 8812

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American Express Company, also known as AMEX, is an

American multinational financial services corporation

headquartered in New York City.

Founded in 1850, it is one of the 30 components of the Dow

Jones Industrial Average.

The company is best known for its credit card, charge card,

and travelers cheque businesse.

Amex cards account for approximately 24% of the total

dollar volume of credit card transactions in the US.

SHORT HISTORY

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It was founded as a joint stock

corporation by the merger of theexpress companies owned by:

Henry Wells (Wells &

Company)

William Fargo (Livingston,

Fargo & Company)

John Warren Butterfield (Wells,

Butterfield & Company).

Henry Wells

William Fargo

John Warren

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Visa operates the world's largest consumer payment system and

boasts more than 2 billion credit and other payment cards incirculation

As part of its business, the company licenses the Visa name to

member institutions, which issue and market their own Visa

products and participate in the VisaNet payment system that

provides authorization, processing, and settlement services

The company also offers debit cards, Internet payment systems,

value-storing smart cards, and traveler's checks. Visa's network

connects thousands of financial institutions worldwide.

MAIN COMPETITORS

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Serving approximately 22,000 member financial institutions

worldwide, MasterCard is the #2 payment system in the US.

It markets the MasterCard (credit, debit, and prepaid cards) and

Maestro (debit and prepaid cards, mainly in Europe) brands,

provides a transaction authorization network, establishes

guidelines for use, and collects fees from members

The company provides its services in more than 210 countriesand territories, and its cards are accepted at more than 35

million locations around the globe.

Also operates the Cir rus ATM network.

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Best known for issuing Discover-brand credit cards, used by

more than 25 million members.

The company's cards, which include several levels ofbusiness and consumer accounts, repay cardholders a

percentage of the purchase price each time they use their

cards.

Licenses Diners Club credit cards, which are accepted inmore than 185 countries.

Also offers direct banking services, makes student and

personal loans and runs the PULSE Network ATM system.

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Card products Consumer cards

Small business services

(also known as American ExpressOPEN)

Commercial cards and services

Non-card products Traveler's Cheques

Financial Advisors

Travel services:

booking, insurance, etc

MAIN PRODUCTS AND

SERVICES

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STRENGHTS Customer satisfaction - J.D. Power and Associates award for customer

satisfaction (2012); capability to provide quality services;

Card memebership10% of the market share; customers with strong

card rating and high income;

F inancial strenghtthe company grew loans in 2012 by 4 pp andincreased the Earnings Per Share from 4.04$ to 4.44$

Strong brand name

Loyalty of customers and loyalty programs (membership rewards

program) Global coverage

Standardization of operations

Product innovation(ex: Blue Bird card for youngsters)

Ability to adopt and apply new marketing strategies and also

technologies

SWOT ANALYSIS

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Growing market share in e-payment services

Expanding the number of small-business merchants offering

Amex as a payment option

Expanding product offerings to those not traditionally in the target

market for the firm (Bluebird card)

Expanding Loyalty Partner Program worldwide(marketing

support for local merchants)

Lawsuit against Visa and Master Card can stop their monopolistic

practices and provide market share to American Express

Opening up their network for use by financial institutions yields

high returns

Reduction of trade barriers and government regulations

OPPORTUNITIES

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Instability in the economic and political

environment worldwide

Rapid changes in Financial Industry

Intense competition

THREATS

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Thank you for your attention!