Better Buy: Visa Inc. Vs. American Express Co.

MasterCard Incorporated is one of the world’s premier credit card processing and money transfer companies in the world. It is the second major payment company in the United States. They focus on making payment transactions safer and beneficial to the society while delivering value through their innovation and execution. MasterCard has three main competitors, Visa at the very top, American Express, and Discover. Visa Inc. has the largest market share of 13.7 percent in the United States with revenue of $12,702 million in 2014. In the same financial year, MasterCard Inc. has recorded total revenue of only $9,473 million and 7.3 percent of total market shares. MasterCard’s SWOT analysis revealed its strength of being the world’s second

For instance, within the customer service center there is a separation from billing, to customer service. In addition, engineering and other behind the scenes departments like human resources function separately as well. The organization is seen as divisional based on the separation from geographic areas. One other important aspect is the Kansas Gas services is a part of the Union, and the other divisions do not have union represented employees. In order to make the organization a more cohesive unit it set out a strategic plan to Become One. Becoming One for the organization was to find a way for the divisions to share their best practices and become a solid unit, to Become One.

American Express Company (NYSE: AXP), sometimes known as AmEx, is a diversified global financial services company 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 traveler's cheque businesses. Amex cards account for approximately 24% of the total dollar volume of credit card transactions in the US, the highest of any card issuer. [1]

According to Horner and Swarbrooke (2005: 39), Segmentation may be defined as the process of dividing a whole market into subgroups or segments for marketing management purposes. Market segmentation is the division of the overall market for a service into various categories with common characteristics. In response to different segments, organisations facilitate the available resources to achieve greater efficiency, in order to satisfy specific needs of customers.

We use credit cards in our every day life. Whether we 're buying clothes, buying a meal, or paying for our child 's schooling, owing money to the credit card company is nearly unavoidable. That Visa credit card can become very heavy in our wallets

2. Divisional structure In divisional structure, organization creates different division based on criteria, for example, bell Canada divided their consumer into three divisions, namely, individual consumers, mid-sized businesses and large sized corporations. By doing such, one division of a company can be easily changed

The merchant has their processor to clear American Express changes as well as MasterCard, VISA, and Discover. We will discuss American Express later. In order to look at his deal we should remove American Express from the computations.

Visa is a credit card that allows you to make payments at millions of retail outlets and online shops worldwide. Both offline and online casinos accept Visa Card as this is the one payment method that you can be sure about. You can go anywhere in the world for business or holiday, and your Visa card will serve you everywhere every time.

Regarding this, Citigroup is going to emit the Costco branded cards and Visa is going to provide the payment network in the United States and Puerto Rico from April 1, 2016. This deal means that Costco customers will only be able to use Visa credit cards at its stores, as is currently true with American Express cards. Another good point of this deal is that this is going to save money for Costco, according to Adams John a writer of the American Banker Magazine, “As part of the deal struck by Costco, Visa and Citigroup, the warehouse store's acceptance cost will reportedly be around zero, compared to the 0.6% of each transaction that Costco paid American Express.” Which is very convenient for Costco as its own CEO Scharf affirms Visa's pact with Costco will benefit card issuers win new customers. In addition to this, the agreement between Costco, Visa and Citigroup which is a good co-branding because we can produce an important rise in sales, and at the same time a lot of those rose sales can flow to the bottom line if we are able to convey a customer in more often by having two well-known brands in a single

They also understand who is the most powerful group in their business so that they can work on reaching their needs and with these information it was possible to work out the segmentation options.

American Express began as a freight forwarding company in the 1850s, then repositioned as a travel agency, a financial and consulting services company. By recognizing that technology has changed the way people communicate and transact with one another, American Express understands the scope and role of internet technology on the travel market. The corporation turned itself into the booming sector of online services and became an interactive business player in a wide array of services. Today, American Express, known as Amex, is a multi-billion dollar corporation that has reshaped its services and operates more than 1700 travel service locations in over 130 countries across the globe.

American Express, also know as AMEX, is a global financial services company headquartered in New York City and founded in 1850. With 54,000 employees and a revenue of over 35 billion dollars American Express stands tall on the New York Stock Exchange (Sec.gov). American Express is best known for it’s credit cards, which make up about twenty-five percent of total dollar volume in credit card transactions in The United States of America (Reviews.greatplacetowork.com). American Express’ goal is to maintain a leading and almost elite reputation with as many qualified card holders as possible. American Express does this by concentrating on the customer’s experience and branding that experience. American Express’ key components in maintaining and further exceling into this goal includes focusing on their human recourses, social responsibility, and marketing techniques.

American Express has plans to establish some more companies in other parts of the world which compares with the recommendations offered for the next three years, since it is recommended that the organization should establish other branches in different areas with an aim of attracting a large market share. The recommendation of advertising also compare with that of American Express since they have a plan to identify online services to attract many customers. American Express also considers partnership with other organizations which will

Citibank should launch the card product in Asia for several reasons. Firstly, Citibank can ride on the rapid economic development in the region via credit card products. Secondly, it is also an excellent way to overcome distribution limitations imposed on foreign banks in the region. Thirdly, it allows Citibank to expand its customer base from the upper income segment to include the rapidly growing middle-income households, which is consistent with its global growth strategy and mission in Asia Pacific. Fourthly, by introducing credit cards, Citibank will be able to cross-sell other product lines such as Auto Loans and Ready Credit

The American Express is currently headquartered in the building called three world financial centres, in New York, United Stated of