SWOT Analysis of American Express [Detailed]

SWOT Analysis of American Express.

swot analysis of american express

SWOT Analysis of American Express focuses on Strength, Weaknesses, Opportunities, and Threats. Strengths and Weaknesses are internal factors and Opportunities and Threats are external factors.

SWOT Analysis provides a well-tested management methodology that enables an American Express in comparison with competitors and industry to assess its business & performance.

American Express is an American organization located in New York and engaged in the financial services industry.

Strength in the SWOT Analysis of American Express – American Express SWOT Analysis

  • Brand Strength: American Express, also known as AMEX, has the benefit of being one of the world’s most important brands. It is the 59th highest-ranking brand in the world as of 2016. The goodwill it has created for itself allows it to respond to its new initiatives in a great way.
  • Employee Strength: The business has over 60,000 employees and employee satisfaction levels are high. A happy, and diverse workforce makes for a great workplace.
  • Financial Position: American Express is financially very strong. American Express has a revenue of 43.556 billion US Dollars in the year 2019, and an operating income of 8.42 billion US Dollars. With a marketing capital of 60 billion US Dollars, American Express is one of the largest financial organizations in the world.
  • Credit Card Schemes: American Express is a trusted brand because of its global popularity and high use. American Express ties with different businesses to provide loyalty programs, credit card programs, etc., make it a very common alternative.
  • One of the key benefits of American Express is that it is accepted as the best credit card to be used while traveling abroad.
  • Status symbol-American Express is a status symbol that can only be accessed by high net worth individuals and credit card recipients. The value of holding a credit card is not offered to everyone. Naturally, carrying an American Express Card is an instant measure of wealth in rich circles.
  • Employees are the key asset of American Express.64500 employees are working with American Express.
  • The organization is following corporate culture and giving its employees training for better functioning of the organization.
  • American Express has a good online presence. American Express is promoting its products and services heavily on social media and other advertising platforms.
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Weaknesses in the SWOT Analysis of American Express – American Express SWOT Analysis

  • Traveler’s Cheque Business – The American Express traveller’s cheque business is deteriorating sharply and needs to be revived.
  • Lack of Debit Cards – The lack of American Express debit cards is another issue. Although American Express credit cards are commonly viewed, debit cards are not. Filling this limit can be of benefit to the company.
  • Lack of other products – The American Express product line focuses on one or two primary products. But additional American express financial goods and cross-sale implementation would benefit AMEX a lot.

Opportunities in the SWOT Analysis of American Express – American Express SWOT Analysis

  • Expansion – There is a large amount of business expansion for American Express. The business does not have a very large global presence and will compete in global markets.
  • Innovative schemes – Another possibility for American Express is the creativity of schemes that are offered to draw more customers.
  • Growing the use of Credit Cards – It is also an excellent opportunity to increase the penetration of credit cards in emerging economies. There are so many credit card users in developing economies. Credit cards are high in demand due to increasing trends in online shopping. Thus American Express can tap them.
  • Brand Equity – American express is a well-established brand in the financial service industry. American Express will use its brand image for selling more financial products and increasing its own turnover.

Threats in the SWOT Analysis of American Express – American Express SWOT Analysis

  • Rivals – While American Express is a pioneer in its field of operations, it is not the only one. There is a lot of large fish in the sea that is ready to win market share. Staying ahead of rivals is a challenge and a hazard.
  • Nature of business – The very nature of the business in which American Express operates poses a danger to it. Volatile economic conditions and financial uncertainties make the system very vulnerable to failure. Government regulations have brought hurdles in the way of a lot of operations and remaining highly productive becomes a challenge.
  • Competitors – Visa and MasterCard are major competitors of American Express and are both very common names.
  • Bad debts – Clearly, bad debts are not a big challenge to the sort of customers that American express has. But when the fish is huge, the loss can be big, too. Of course, in the case of American Express, a single bad debt would be of a huge amount.
  • Countries Financial Policies and regulations directly or indirectly affect the business of American Express.
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