Essays on Amex

1. American Express’ objective for use of social media is to engage closely with existing customers through promotional events and generate new customers by providing positive perception of the company’s customer service. American Express has fewer cardholders than Visa or Mastercard but the average annual transaction size per Amex cardholder was nearly three times that of the other two. Unlike Visa and Mastercard, whose primary focus was settlement between banks, issued cards and managed merchant transactions through various banks. Amex, however, issues its own cards and performs all other functions as well. The company actually tracks customer and ...

Scenario 1: A Case Study

Dear

Issue I: Lawfulness of Competing against a Former Employer? The resignation of Ron from Flush Ltd to found Amex Ltd to directly compete against a major client of his former employer will be lawful or not depending on three facts: (a) Is there an employment contract between Ron and Flush Ltd that explicitly includes a non-compete clause? (b) Is there a clause in the employment contract, which requires that Ron cannot enter into a business venture in a competitor company within a prescribed period after the date the resignation became effective? (c) Is Amex a direct competitor of ...

The American Express is a global financial company that dominates the credit card segment. The company generates revenue by interest charges and other fee. It issues cards independently and not as intermediaries; thereby bearing the total financial risk. The main competitors of AmEx in the Credit Card Processing & Money Transferring industry are Visa Inc., MasterCard, PayPal and KKR & Co. Visa and MasterCard are main arch rivals of AmEx in the “Credit Card Processing & Money Transferring” industry. Each of them has its credit card network; however, they use different ways to issue cards. Visa and MasterCard are not financiers which ...

American Express is one of the most respected companies within the United States. Their cards have wonderful services that have historically appealed to the elite and affluent of American society. Where American Express has a major weakness in how their business progresses as a whole is their approach to making their services less “American” and being accepted at more globally recognized cities. Having traveled a great deal, this seems to be the best direction for American Express to travel to in the future for their business model. This paper will explore why American Express should take this approach and ...

Question 1

American express issues its cards directly to their customers and also deals directly with the businesses that accept its cards. This is as opposed to Visa and MasterCard that issue their cards through banks and also uses the services of banks such as Chase Bank and Bank of America to deal with the merchants. This strategy has given American Express a unique opportunity to be able to deal with customers’ complaints as they have access to the transactions and also to the merchants that offer their cardholders services, something that Visa and MasterCard cannot do since they have no direct ...