American Express SWOT and PESTLE Analysis

Strength

This section is available only in the 'Complete Report' on purchase.

Weakness

This section is available only in the 'Complete Report' on purchase.

Opportunity

1. Technological Advancements to supplement growth: Innovative payment mechanisms, services and advancement in data management and analytics will enhance customer interactions and communication and authentication processes. This will increase its competitiveness in domestic and international market. If American Express’s new product development keeps pace with the changes in banking industry then it can further expand its market penetration globally which will increase its revenue. The rapidly changing payments landscape driven by innovative technologies will drive a CAGR of 22.9% projected global digital commerce growth through the period of 2020-2027 and 10% projected consumer spend growth through 2022. Technological advancement such as automation, usage of distributed ledger technologies (e.g. blockchain), app and mobile based services, use of big data, etc. Can ensure greater transparency, increased risk management and information management. This will lead to efficient operations and also reduce the operational costs and increases profit margins. 2. Strategic mergers and acquisitions: Mergers and acquisitions can improve the scale of American Express’s operations. If the bank continues to undertake potential transactions then its services, operations and financial condition will significantly improve and facilitate further expansion. Centurion Bank will be combined with American Express by mid-2018 and integrate more financial services into their product offerings and support its closed-loop functionality. American Express acquired a digital payment automation platform, Strategic M&A which can also ease operational difficulties and get greater market access even in emerging economies by exploiting the brand value of the domestic institutions. It lowers operational costs through technological spill over, greater synergies and thus reduces liabilities. It will create new customer acquisition channels as well. They will also lead to deep rooted market growth as well as widen its global footprint as more products and services are offered. The People’s Bank of China also accepted American Express’ network application in 2019 which has enabled the company to expand its business operations in the country. The remaining section under "Opportunity" is only available in the "Complete Report" on purchase.

Threat

This section is available only in the 'Complete Report' on purchase.

Political

This section is available only in the 'Complete Report' on purchase.

Economic

This section is available only in the 'Complete Report' on purchase.

Social

This section is available only in the 'Complete Report' on purchase.

Technological

This section is available only in the 'Complete Report' on purchase.

Legal

1. Impact of Bank Holding Company (BHC) Act: This act restricts certain banking activities and associated activities. There are certain regulatory requirements to be able to perform those activities. It includes election of the respective bodies like TRS to become a financial holding company, which is authorized to engage in a broader range of financial and associated activities. American Express’s subsidiaries have to be well capitalized & well managed. It also needs “satisfactory” rating on Community Reinvestment Act of 1977’s most recent assessment. It prohibits activities authorities consider unsafe. If these requirements are not fulfilled then they may have to discontinue lot many activities and be barred from certain M&A transactions. The remaining section under "Legal" is only available in the "Complete Report" on purchase.

Environmental

This section is available only in the 'Complete Report' on purchase.