Global Competition and American Express

GLOBAL COMPETITION AND AMERICAN EXPRESS.
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Global Competition and American Express
Global competition has led to increased innovation in various industries, and hence global companies have improved their operations in light of global competition. American Express AmEx, is in the global service industry, and the company deals with payment processing for small to global companies. This includes issuance of cards, which facilitates transactions between multinational corporations and their clients. Furthermore, the company deals with travel agency, where travel charge cards have increasingly been adopted in the travel industry. Equally, the use of credit cards is common with integration of technology in the business world, meaning that there is an opportunity of growth for the company through global expansion.
Global investment banks and card issuing companies from America, present the greatest challenge for the Company because of the advanced financial sector in US. Nonetheless, one of the impacts of global competition has been off shoring especially for call centers to places like India. Thus, global competition has led to cost cutting techniques to improve the Company’s competition. However, investment banks have a more global outlook than American Express given that they are also involved in traditional banking services. In other words, besides investment globally, most investment banks have links to banking systems outside the US. Nonetheless, the limits of off shoring present challenges to American Express, because of the cultural differences in off shore center outside North America.
American Express relies on a business model that focuses on few customers, but also offering large transactions accompanied with customer service. However, the entry of cheaper credit card providers may provide global competition to the company. Even though, there is a growing middle class in Asia and the emerging countries, the spending habits of such consumers are conservative in comparison to the North Am...