In this assignment, I will attempt to use American Express Company (“AXP”) as an example to see how the macroenvironmental marketing forces affect its business and what kind of proactive approaches the company takes to address these opportunities and threats. I will use both Kotler and Armstrong’s (2010) and Kurtz’s (2010) frameworks to assess the company’s marketing macroenvironment by dividing the environment into five forces: competitive, economic, technological, political and legal, and social and cultural, and I will describe how AXP is transforming its existing businesses and creating new products and services for the digital marketplace as it seeks to enhance customers’ digital experiences and develop platforms for on-line and mobile commerce.
AXP is a global services company founded in 1850 that processes credit and debit card transactions on behalf of merchants and card issuing companies. Its key products and services include credit, charge and and business cards, expense management, travel services, and stored value products and services. American Express’s business segments include US Card Services, International Card Services, Global Commercial Services, Global Network & Merchant Services, and Corporate and Other. The United States is the largest geographic segment of the company, while the Asia-Pacific is the region with the highest revenue growth. In 2013, its net income was USD 5.4 billion. (American Express [AXP], (2013a), p. 2)
In most industries, customers can choose what good and products they can purchase. Thus, when a firm defines the target markets that it will serve, it simultaneously selects a set of competing firms. Because the competitive environment often determines the success or failure of a product, marketers must continually monitor and anticipate their competitors’ marketing strategies. (Kurtz, 2010, p. 62)
AXP’s competitors are those credit and debit card...