Swot Analysis Of Amex

1619 WordsSep 30, 20177 Pages
Within the SWOT analysis, the external analysis focuses on opportunities and threats which affect the organization. In our external environment SWOT analysis of American Express, we we will look at AmEx’s closest competitors, economic trends, political and legislative factors, relationships with partners, and globalization. Competitors and Competition American Express is a top competitor in the global general-purpose charge and revolving credit cards and debit cards issuing industry. Their direct competitors include Visa, MasterCard, Discover, Diners Club International, and JCB and China UnionPay (primarily in Asia). Globally, American Express comes in fourth behind China UnionPay, Visa and MasterCard in terms of purchase volume…show more content…
We are also seeing tech companies move into the physical space with companies such as Venmo and PayPal launching their own debit cards which link the user 's accounts to their mobile platforms. One of the biggest draws of debit cards such as these is that they eliminate the user’s need to transfer funds from the mobile platform to their banking institutions (Green, 2017).This also hurt AmEx’s branding, as the high-end card issuer, as less importance is being put on the brand, and more is being put on convenience. Political, Environmental, and Economic Regulations Geopolitical shifts around the world have the financial market constantly on edge. From Brexit to uncertainty regarding legislation in the United States, financial institutions are on constant watch for changes which could adversely affect their businesses. There is a general sense of uncertainty regarding how the shift toward nationalism and protectionism, will affect trade pacts, and the cost of conducting business. If faced with an economic downturn, consumer discretionary spending may be change consumer spending behaviors and abilities to pay back debts (American Express Company, 2016). Factors affecting travel could directly impact American Express revenues. With Global Business Travel and other travel services acting as key business lines, consumer safety concerns, health risks, and government set

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