Key Strategies of American Express Inc. 

American Express Inc. 

Introduction

Having been in the industry for a substantial period of time, American Express Inc continued to remain resilient in carrying out its operation and business deals across all its related business segments. As of today, the company is not only known for its efficient operations in the United States but by extension, for the world at large. The company’s research as proven is placed on a pedestal by major ranking bodies, including Forbes and Fortune magazine. The company thrives in its inclusiveness and equality of people working under its management and this could be seen as an underlying factor that helps the company in achieving several great feats. As of 2021, American Express Credit has a total number of 64, 000 employees in its workforce globally and are recognized as individuals with talents and creativity as the company only focuses its recruitment unit on recruiting individuals with intense creativity and passion for growth. The success story of this corporation as a whole would however be incomplete without pointing out and recognizing its key strategies utilized. As a result coupled with the major premise of this piece, this article would show you the key facts utilized by American Express Inc as a corporation and how these key strategies are working effectively for the company.      

Key Strategy of American Express Inc. 

An in-depth study and focus of American Express Inc reveals that the company leverage several strategies to achieve its goals and objectives as an organization. To this end, this section would itemize and explain in detail what these key strategies are, how American Express Inc leverages them, as well as how the results of these strategies are reflected on the company. 

American Express Inc’s key strategies include: 

A Robust Marketing Strategy:  

One of the strategies that have distinguished the company from its counterparts is embedded in the optimal utilization of its robust marketing unit. The marketing strategy of American Express Inc includes such areas as targeting, segmentation, as well as positioning. The team uses several marketing tool mechanisms like promotions, social media marketing, marketing campaigns, SEO strategies, influencer marketing strategies, as well content marketing strategies to ensure customers across the globe are well-informed about its products and services.   

Leveraging The American Express Strategic Team: 

As aforementioned in the introductory part of the piece that American Express Inc emphasizes people’s inclusiveness, hence, the company has a team of brilliant individuals who are charged with the responsibility of building and putting strategy systems in place. The team of like minds collaborates together in creating and developing new ideas and innovative strategies for the company’s CEO and top management officials to look into and implement for the growth and success of the organization.   

Mergers and Acquisitions:  

Another key strategy of the company is the style it has chosen in buying and acquiring companies. American Express Inc. has an eye for companies with future potentials that is, long-term potentials, rather than companies with short-term success. Since its inception, American Express Inc consistently purchases companies that are key players in the financial industry and as a result continued to outstretch its business dominance. For instance, in the year 1984, the company bought a nonagenarian company operating under the name, Investors Diversified Services (IDS) which led to the expansion of the company’s investment products. 

Strategic Investing:   

Since the company’s inception in 1850, American Express Inc. has consistently invested in diverse areas such as human capital investment, asset investment, innovation, and technology investment as well as investment in social and philanthropic courses.  The strategy has paved a soft ground for the company to stride on and the confluence of these series of investments has led to the massive growth of the company.  

Market Diversification 

Diversifying into the different markets is sure a great strategic tool most large corporations leverage to build and expand their enterprise, and American Express Inc. has not in any way been left out of this trend. The company in its entirety has a broad spectrum of products and services targeting a diverse range of markets and bringing in multiple streams of income for the company while technically increasing its revenue and net income, and by extension creating a new way for the company to serve its customers better. 

Spin-Offs 

One of the key strategies used by the company is its spinning of strategy. In its entirety, the corporation is split into two major entities operating under two different names: American Express Inc. For example, in the year 1993, in a bid to rip off its investment banking venture, American Express Inc arranged the sale of its Shearson’s asset management & retail brokerage division to Primerica. The Shearson business later converged with Primerica’s Smith Barney to make Smith Barney Shearson. And eventually, the Shearson name was dropped in 1994.  

Supply & Distribution Chain 

Having a supply chain and an uninterrupted distribution system is one of the key strategies to the success of American Express. The company builds an excellent chain of distribution that attends to orders in a relatively swift and timely manner. With American Express Inc’s logistics and chain of distribution, customers can rest assured of uninterrupted delivery anywhere in the world.    

 Checks and Balances 

American Express Inc is not only interested in the growth of its enterprise, however, what matters most to the organization is to determine whether it’s also growing in terms of profitability which justifies the main fact why the company was created in the first instance. Thus, this firm and strong philosophy is the reason for the company’s continuous growth. However, to achieve this, the company utilizes several methods which include investigating all segments of its enterprise using its Operating and Executing Model (O&E) to determine which segment brings in high value and which brings in less value so as to invest in key areas that values on ROI are optimally high. The company uses in-depth analytical methods to screen out key areas in the business world where it could do business that thrives and find its way how to navigate and establish itself. Nonetheless, these key strategies would not be achieved without the reflection of the company’s core values. 

Engaging People 

Understanding what the power of a strong and formidable workforce could do to a company which includes but are not limited to helping the such a company to achieve: its aims, goals, objectives, mission, vision as well as its overall successes. American Express Inc creates an inclusive workplace environment where talents, skills, ideas, and innovations can thrive, and career progression can be attainable. The company allows people to express their gifts freely both individually as well as collectively. This strategy is, however, marked as the reason for the company’s innovative growth and development as no single idea of an individual is left unnoticed.    

Willingness to Change with Time: 

With a long years of industry experience as a result of its establishment in the mid-1800s (1850) over a century ago, no doubt the company has been able to leverage its willingness to adapt to changes as time whirls and evolves since its inception. It is apparent that when the company was created, the boom of globalization as well as the growth of digitization is not in comparison with today’s dispensation, however, the company is able to remain relevant up to this day sequel to its willingness and ability to cope and adapt with changes.   

Commitment to Innovation: 

Another astounding strategy responsible for the company’s growth is its commitment to innovation, American Express Inc builds a system that positions the company for innovative development which enables the company to thrive in the business world, hence ranking drastically beyond its contemporaries. This implementation of this strategy is significantly supported by the strategic team and research development unit which act collaboratively in creating a template for the company’s innovation and development.     

Building a Customer-Centric Enterprise: 

Understanding that customers are pivotal stakeholders as a result are responsible for the success of any organization in that products and services of any enterprise are solely built for their purpose. To this, American Express Inc strive to ensure all its customers are given the best service delivery across all its business segments which include its financial service segment, insurance service segment, as well as its travel service business segment.  

Giving Back to Community: 

Another dignified way a company can increase its status is by giving back to communities which reflects the company’s corporate social responsibility. Although, while Corporate Social Responsibility (CSR) is not a compulsory or mandatory responsibility of a company in that it is just a way for companies reflect its philanthropic values, however, leveraging this strategy could help a lot as a good CSR would help a company gain confidence and respect of society as well as the entire human race as a whole, thereby boosting its reputation. Giving back to the community has been one the key drivers that have helped American Express Inc hitherto this day.  

Conclusion 

This piece has been able to address the key strategies used by American Express Inc to foster its overall business operations which include, A Robust Marketing Strategy, Leveraging American Express Strategic Team, Mergers and Acquisitions, Strategic Investing,  Market Diversification,  Spin-Offs, Supply & Distribution Chain,  Checks and Balances, Engaging People, Willingness to Change with Time, Commitment to Innovation, Building a Customer-Centric Enterprise; that said, with these key strategies addressed pointed out, we hope you are able to understand how each strategy is pivotal to the growth of American Express Inc.