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SWOT Analysis of American Express

SWOT Analysis of American Express

American Express is a multinational financial company that was established in 1850. The company headquarters is based in New York. American express offers versatile financial services like processing payments, traveler’s checks, credit cards, planning services, tour packages, car rentals, and travel services. As a result of a merger in 1868, the company was renamed American Express Company. The enterprise is currently operating in more than 40 countries with 59,000 employees. American Express is a leader in a world market that offers personal, small businesses and corporate finances. Now we look at SWOT of American Express or American Express SWOT Analysis

SWOT Analysis of American Express

Strengths

In-Hand Cash:

American Express is one of the most valuable brands with huge cash flow. The enterprise uses its cash flow for expansion of the business in multiple regions.

Brand Services:

American Express has a high rating among other financial companies. Due to the goodwill of the enterprise, there is a stronger image that is successfully built among the customers. American express company has invested a lot in building a brand. As a result, the company has positively able to get the attention of the customers with a brilliant portfolio.

State-Of-The-Art Packages:

American Express has always achieved the desired results. This is because there are innovative packages offered to customers. The state of the art approach in developing new products has helped the company reach billions of consumers all over the globe.

Reliable Supply Chain:

American Express Company has a brilliant track record. The company has successfully taken over other businesses with emerging new ideas. The enterprise has flawlessly streamlined all the operations with the help of a reliable supply chain.

Professional Resource Strength: 

American Express is a professional financial market player with a wider domain of services. The enterprise has now more than 60,000 employees working in various financial channels.

Most Trusted Brand:

American Express has a global recognition because of its trusted financial services. The company has a market capitalization of around $ 60 billion. There are loyalty programs, promotions and deals offered that makes it a trusted and reliable brand.

International Customer’s Portfolio:

American Express is the only brand with the highest number of international customers. The enterprise is the safest link for travelers all around the world. American Express is a status symbol of safety and financial worth.

SWOT Analysis of American Express

Weaknesses

Demand Forecast:

Demand forecast has always been a weaker link for American Express. The leading financial company has missed a lot of opportunities. The inventory management is not up to the mark. As a result, the day inventory is always on a higher side.

Niche Categories:

American Express is not good at Accepting challenges. In the market, a High percentage of share catered by its competitors. One of the reasons for that is the weaker internal mechanism. The procedural parameters must be redefined by the company to enter niche segments of the market.

Limited Organizational Structure:

American Express has not enhanced its organizational structure. As a result, the enterprise has limited access to the market with adjacent products. Due to the unavailability of adjacent products, there is an abrupt decline in sales and market share. Competitors with a stronger organizational structure can get more access to the customers.

Quality Assurance:

Quality assurance is a department that defines and assures the quality of a product. American Express has invested a limited amount of money in the quality department. As a result, there is a lack of consistency in the services on various online platforms.

High Percentage of Rental Property:

Most of the properties used by American express are on rent. The rental properties get a significant proportion of cash flow. As a result, the cost of operation and services are high.

SWOT Analysis of American Express

Opportunities

Travel Industry:

There is a lot of potential available for business in the travel industry. As a known enterprise in the travel industry, American express can get benefit from the growing tourism sector.

Skilled Workers: 

American Express can improve the resource portfolio to provide an effective operational structure for the customers. Hire multiple firms to get skilled and professional workers. A professional and skilled resource is an integral domain for any growing industry.

A decline in Interest Rate: 

The rate of interest fluctuates a lot. In recent years, the rate of interest is on the lower side. American Express can take advantage of the opportunity by taking cheaper loans. Inicite multiple projects with the help of flexible loans.

Latest Technological Tools:

The innovative technologies are available for any business operations. These tools are developed considered the latest trends. There are parameters available in technological procedures with which American Express can mark improvements in multiple domains.

Alternate Payment Channels:

For customers, convenience, cost and time saving is a top priority. Conventional payment procedures are used in most of the financial products offered. There can be alternative launched into the market. This new idea can increase product penetration in the market.

SWOT Analysis of American Express

Threats

Promotional Rewards:

There is a growing trend of offering promotional rewards to customers. Competitors in the market are using these trends to provide reasonable benefits to the customers. Likewise, frequent users of any product can avail of a high percentage of discounts from companies.

Alternate Products:

Several numbers of alternative products launched into the financial market. These products can significantly decrease the sales of conventional products offered by American Express.

Consumer Behavior:

Over the years, consumer taste and behavior has changed a lot. This tendency of changing behavior can put immense pressure on companies like American Express. There is a need for consistent innovative changes in presenting products to the customers.

Delayed Payments:

American express can lose its hold in the financial market with delayed payments. These expenditures to be made timely. Make sure that it has no effect on services and operations, the process of cash flow must be flawless.

Changing Protocols:

In international trade, there is a need to follow some protocols. These regulations can keep on changing at regular intervals. Highly effective compliance required by companies like American Express to operate globally.

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