American Express : Business Insider

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Not only does American Express have such a strong brand name and reputation, but they also have a system that allows their customers to travel with ease and confidence. American Express offers their customers a platinum card that is great for customers who travel internationally. There are multiple benefits to signing up for this card with American Express. One main benefit is that the card does not charge any foreign transaction fees. Along with that way of saving money, American Express offers a Pay with Points program which in turn rebates twenty percent of the platinum cardholders’ points if the customer books their hotels and flights through American Express’ own travel service. According to Tim Chen on Business Insider, “that any…show more content…
Compared to other card companies like MasterCard and Visa, American Express offers a larger span of benefits when it comes to their travel services. The main amenities to Visa and MasterCard’s travel services are associated with car rentals and 24/7 toll-free operators, which American Express has as well. The main point to American Express offering more of these benefits go a long way for the company. This strength creates an opportunity for American Express to have a competitive advantage over the other card companies. Weaknesses of American Express The competition among card companies has definitely increased. American Express is facing some weaknesses that need to be solved. Nowadays, American Express is having a tougher time accommodating to new realities in the world of payment processing. The target consumers are people with strong buying power in Eastern Seaboard and the California coastline that are 30-50 years old. The consumer group is not applying to many retailers and wholesalers such as Costco. Costco was one of the few retailers that only accept American Express credit card which means Visa or MasterCard cannot be used in Costco. This relationship between American Express and Costco was very important to American Express profits. According to a survey, American Express’s total revenue increased by $1.16 billion between September 2013 and September 2014, (Jennings, 2014) and Costco customers are one of the key sources of
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