What Costco’s move away from American Express will mean to you

Posted on August 19, 2015 1:21 pm

  • Why did costco drop american express

Some 60 million of us are Costco members. So what will happen with your credit and credit score as the warehouse club transitions away from American Express?

How your credit could be hit twice

Earlier this year, Costco dumped American Express and announced they’d be starting a new relationship with Citibank. That means the new Costco reward credit card will be issued Citibank, not American Express. (There’s no word yet on exactly how rewarding the new reward card will be, but that’s a different story!)

The important thing for you to know is that this transition could lead to two hits against your credit. Citibank will run a hard inquiry on your credit if you want their new card, which makes sense since you’ll be a new customer. But as for American Express, they’ve made a decision that is loco: Amex will offer a new alternative to the Costco American Express, but they will do a hard inquiry on your credit if you want the new card — even though they already have a detailed credit payment history on you.

Why in the world would they do that? Here’s a statement I got directly from an American Express representative:

“A new credit card product has us entering into a new contract with the Card member with potentially different terms, conditions and benefits. The credit check helps ensure we’re providing the most appropriate product and services to our customers.”

OK, so that is a bunch of legalese. If you’re a longtime customer, you should expect better from American Express. But their statement shows clearly that they have decided your past payment record with them is not enough to grant you a new card.

It’s a lamebrain kind of decision that’s typical of big corporations. Just like dinosaurs, the bigger they get, the dumber they become because their brains are so small!

How bad will the damage be?

Let’s say you opt to get both the Citibank Costco card and the new American Express alternative to their soon-to-be-extinct Costco card. What kind of hit would that have on your credit?

myFICO reports that multiple credit applications in a 12-month period are a key leading indicator that somebody is in financial distress. That will lead to a lowering of your credit score.

It can be hard to quantify the exact number that your score will drop by. A single application in a 12-month window won’t matter much, especially if you have a long credit history and several different lines of credit. But if you have a shorter credit history or not much credit to your name to begin with, it’s going to be a bigger hit.

Here’s one last ironclad warning: If you are in the market for a mortgage or refinance, do not apply for any new credit card during the process of mortgage shopping. It could cost you many tens of thousands of dollars when your credit score goes down following the initial inquiry. That drop in score may put you in a different category, and then you’ll get a higher interest rate and have to pay more over the life of your loan.

As for American Express, I want to appeal to the company to rethink its decision. Some people who have had the Amex Costco card for 16 years and faithfully paid on time each month are having to apply again and have their credit dinged. Perhaps a better approach would be to grandfather in customers with a solid payment history of 10 years or more. Just a thought!


Costco No Longer Accepting American Express In 2016 After Striking Deal With Visa, Citigroup

Why did costco drop american express

Customers at Costco. (Photo by Kevork Djansezian/Getty Images)

FOSTER CITY (CBS / AP) — If you’re shopping at Costco, you’ll need a new credit card to pay for those family-sized packs of chicken breasts or toilet paper.

After only accepting American Express the last 16 years, the retailer is switching to Foster City-based card giant Visa and will use Citigroup as its exclusive provider of co-branded credit cards.

Costco is a large and influential chain. It is the world’s second-largest retailer by revenue, and has 671 locations around the world, including 474 in the U.S. and Puerto Rico. For an annual fee of $55 to $110, shoppers get access to groceries in bulk sizes, as well as appliances, jewelry, home goods and other products.

The switch from AmEx to Visa could mean changes for some of those customers. Here are the things you need to know:

Costco will only accept Visa credit cards at its stores starting April 1, 2016. Customers will also be able to use Visa and MasterCard debit cards, or pay in cash. American Express credit cards will no longer be accepted on that date. That’s a hit to AmEx. Last year, Costco accounted for 8 percent of American Express billed business, 10 percent of its cards in force and 20 percent of its worldwide loans.

Citigroup is also expected to take over the existing American Express Costco credit cards.

WILL I HAVE TO REAPPLY FOR A COSTCO CREDIT CARD?

Costco hasn’t said yet whether people will have to reapply for its rewards credit card. Citigroup says it plans to make the transition from AmEx to the Citi’s Visa card as “seamless” as possible.

Costco card holders probably won’t need to reapply, industry experts say. However, a small number of Costco card holders won’t be approved for a Citi card. American Express and Citi have different credit standards and a person who may have qualified under AmEx may not be approved under Citi. The people affected are likely to be small, however, since American Express’ qualifications are some of the highest in the industry.

When its agreement came up for renewal, AmEx and Costco were unable to reach a deal that both sides liked.

WHY ANNOUNCE THIS A YEAR AHEAD?

After the announcement last month that Costco was ending its relationship with American Express, “we wanted to reassure everyone that we had another deal in the works,” says David Sherwood, director of finance and investor relations at Costco.

WILL THE CITI CARD OFFER SIMILAR REWARDS AS AMEX?

That is still to be determined, but industry experts say it is likely. As with the American Express card, the new Citi card will have no annual fee, Costco says. And like with AmEx, the new card will serve as a membership card.

With the Amex card, Costco customers get 3 percent cashback on fuel purchases, 2 percent back on restaurants and eligible travel and 1 percent cashback on all other purchases. The cashback comes in the form of a check issued every February. Customers can use the check for goods at a Costco checkout line, or redeem it at the customer service desk for actual cash.

The cashback program on the American Express card was good for Costco because customers would use their checks to buy more Costco goods. Citi also has a long history of issuing credit cards with cashback programs.

“It makes sense from Costco’s perspective to have the cashback program,” says Ken Paterson with Mercator Advisory Group, a banking industry consulting firm.

WHAT ABOUT THE CARD I HAVE NOW?

Any cashback rewards earned on the Costco American Express card will be valid, Costco says. Cardholders have until August 31, 2016 to redeem the rewards that are issued in February 2016.

© Copyright 2015 The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten or redistributed.


Costco to ditch AmEx cards at U.S. stores next year

(Reuters) - Warehouse club retailer Costco Wholesale Corp ( COST.O ) will stop accepting American Express Co’s ( AXP.N ) credit cards at U.S. stores from next year, threatening nearly 8 percent of the worldwide annual spending on its cards.

AmEx said on Thursday the loss of the contract would hurt earnings for the next two years, sending its shares down as much as 7 percent and wiping out about $6 billion of market value.

JPMorgan Securities analyst Tien-tsin Huang said the loss of Costco would reduce spending on AmEx cards by about $80 billion a year, including their use at businesses other than Costco’s 468 stores in the United States and Puerto Rico.

AmEx said it expected earnings per share growth in 2015 to be flat to down modestly from 2014 as the company invests aggressively to prepare for the termination of the contract.

The agreement between AmEx and Costco is set to end after 16 years on March 31, 2016. Costco warehouses in the United States currently accept only American Express cards.

“We were unable to reach terms that would have made economic sense for our company and shareholders,” American Express CEO Kenneth Chenault said in a statement.

Competition in the co-branded card business has intensified in recent years, leading to higher renewal costs, Chenault said on a conference call.

Costco declined to comment on the move, which follows its decision to drop AmEx in Canada last year.

Capital One Financial Corp ( COF.N ) and MasterCard Inc ( MA.N ) replaced AmEx as Costco’s card partner in Canada, raising speculation that the companies could also replace AmEx in the United States.

Capital One, whose shares were up 2.6 percent in early afternoon trading, did not respond to a request for comment. MasterCard’s shares were up 2.7 percent.

American Express renewed co-branded contracts with Delta Airlines Inc ( DAL.N ), Starwood Hotels & Resorts Worldwide Inc HOT.N and Cathay Pacific Airways Ltd ( 0293.HK ) in 2014.

Costco, which sells everything from jewelry to fresh produce at its cavernous members-only stores, reported revenue of $112.64 billion for its fiscal year ended Aug. 31, 2014.

The company caters to relatively higher-income customers than Wal-Mart Stores Inc ( WMT.N ) and Target Corp ( TGT.N ).

AmEx shares were down 6.1 percent at $80.75 in afternoon trading on the New York Stock Exchange. Costco’s shares were unchanged at $147.47.

Reporting by Avik Das in Bengaluru; Editing by Savio D'Souza, Sriraj Kalluvila and Ted Kerr


Costco Wholesale Corporation’s Biggest Win in 2016

Why did costco drop american express

Costco (NASDAQ: COST) did something risky — some would say foolhardy — in June 2016, when it dropped its longtime credit card partner American Express (NYSE: AXP) in favor of Visa cards from Citigroup (NYSE: C).

It was a challenging move because all of its members who had the former American Express card would need to be issued the new Visa card and activate it. And, to compound the problem, because of the contracts involved, the actual switch was very abrupt.

On June 19, the old American Express cards worked, and the new ones did not. When Costco stores opened on June 20, the old cards were dead, and not only was Visa the company’s new rewards card provider, the chain now did not accept American Express at all.

This, as you might imagine, created some initial confusion. In some cases, it was because consumers ignored the store signage and many mailings about the change. In others it was simply American Express cardholders who had no idea why their regular cards, not Costco rewards cards, were no longer accepted by the warehouse club.

Early problems with the switch led to more than 1.5 million calls to Citigroup, according to a spokeswoman for the card issuer, but the problems were short-lived. More people were hired in July, Citigroup spokesperson Jennifer Bombardier told The Motley Fool, and call volume and wait time soon dropped dramatically.

It was a tough switch, but CFO Richard Galanti explained during the company’s Q4 earnings call that it was ultimately a triumphant one. There were problems, but very quickly, this difficult switch became a win for cardholders, the company, and shareholders.

There was a lot of effort, and as you know, there were a few operational glitches during the first few weeks after the cutover. We’re now past that, and more importantly, the new card is fantastic for our members.

Why is this a big deal for Costco?

Galanti acknowledged the early troubles in his remarks, but he quickly moved to explaining why the change was a win for all involved.

In terms of increased cash back rewards, the estimate is about a 40% to 50% improvement in the reward program…And it’s also great for us in terms of driving member value and sales over the next years and of course lowering our effective costs of accepting credit and debit cards.

The CFO laid out some of the new benefits explaining that the cash back on gas purchases rose from 3% with the former card to 4% on thew new one. He also explained that the reward offered for restaurant and travel-related purchases has climbed from 2% to 3%. The biggest change, he noted, was that the reward offered on any Costco purchases had doubled from 1% to 2%.

In addition, the number of people converting from the old card has been strong, as have been the numbers signing up for the new one. It’s worth noting that the immediate demand may be misleading. There was an eight-month period where the company was not accepting new rewards card signups, so there is some pent up demand.

The CFO said that of the approximately 7.5 million American Express accounts that were transferred over to Citi during the conversion, about 85% were considered active. “That is, the card had been used for purchases over the previous 60 days,” he added. Over 85% of the total amount of accounts have now been activated with Costco, according to Galanti.

The CFO continued:

And since June 20 and just the past many weeks, 1.1 million members have applied for the new card and over 730,000 new accounts have been activated or a little over 1 million additional Citi Visa cards in circulation. It’s still early. We launched only 14 weeks ago, but so far, we are beating our initial expectations in terms of conversion, usage and new sign-ups to the card.

Why did costco drop american express

Costco’s big switch caused some confusion, but it proved to be worth it. Image source: The Motley Fool.

It must have been tempting for Costco to not risk a good thing — or risk upsetting its customers — and stick with American Express. Instead, it accepted a better deal for itself, its cardholders, and ultimately, its shareholders.

This was a bumpy road well navigated. The warehouse club now has a more profitable program that also offers better rewards. This change may not have been easy, but it’s going to pay off for years to come.

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Costco and American Express Divorce

. Introduction It is crucial for a contemporary organization to have a marketing department that understands their crucial role in being able to market their product successfully and therefore profitably. The two major organizations discussed will be Lipton and American Express. Here, there will be a discussion of the two contrasting products; a 500ml bottle of Lipton Peach Ice tea and an American Express Platinum Credit Card. These two products will be compared and contrasted to one another in terms of product description, classification and segmentation. Product Description When a marketer sells a product, they must take into consideration the three levels of a product; the core, the actual and augmented. Kotler et al. (2007) describes the ‘core product’ as core benefits which act as problem solving services that consumers are buying when they attain a product. The ‘actual product’ is a combination of the product’s features, styling, quality, branding and packaging. And lastly, the augmented product is the additional consumer services and benefits which are included to increase competitiveness. With Lipton Peach Ice Tea, the core product is that it is a drink; a benefit to quench thirst. It also has a core benefit of social acceptance, as there may be a perception that those who drink Lipton Peach Ice Tea are ‘cool’. Also, the ice tea is convenient as it is easily bought and managed. The actual product features of the Lipton Peach Ice Tea are that it is a.

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. 1. Visit the American Express web site (www.americanexpress.com) to learn more about the different cards that American Express offers. Select three of the macro environmental forces discussed in the chapter. How do the different card options reflect the changes in those forces? • The three macro environmental forces are the following: Demographic Environment: American Express issued their first card back in 1958. They only had one card for everyone. But as time changed, population increased and so did the consumer needs. American Expressed produced different cards to meet consumer needs. American Express offers many different card options for personal and business use, as well as cards geared towards the young, and wealthy. Economic Environment: American Express has adjusted its marketing trends with the changing economy. They generally do not influence any law, it is continuously changing, therefore becoming flexible in order to adapt to the changing environment and customer demands. They have developed cards for personal use, travelling, business purposes and this gives customers a vast choice to choose for their different spending types. Technological Environment: Although there may be competition and rivalry in a market, Globalization means that there is always the threat of substitute products and new competitor. With a wider environment and constant change, the marketer’s need to compensate for changes in culture, politics, economics and technology. American Express.

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. the network of American Express and issues local currency cards carrying American Express Logo. In this kind of arrangement, the joint venture becomes responsible for the credit risks of the card member. It also takes up all the operating and marketing costs. American Express operates a GMS business, which includes signing merchants to accept Cards, U.S. Card Services As a part of the Company’s Card-issuing business, its United States banking subsidiaries, Centurion Bank and AEBFSB, issue a range of card products and services to consumers and small businesses in the United States. Its consumer travel business, which provides travel services to Cardmembers and other consumers, complements its Card business, as does its Global Payment Options business. The Card business offers a broad set of card products. The Company offers individual consumer charge Cards, such as the American Express Card, the American Express Gold Card, the Platinum Card, and the Centurion Card, as well as the ZYNC Card from American Express; revolving credit Cards, such as Blue from American Express, Blue Cash Card from American Express, Blue Sky from American Expresssm, and Blue Sky Preferred from American Express, and a variety of Cards sponsored by and co-branded with other corporations and institutions, such as the Delta SkyMiles Credit Card from American Express, True-Earnings Card for Costco members, Starwood Preferred Guest Credit Card and JetBlue Card from American Express. The Company offers.

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. American Express Qantas Corporate Card Program (AEQCC) Target Market Segmentation Validation and Buyer Criteria/Hierarchy Analysis What is the target market? People who possess an American express credit card have always been considered to be part of an exclusive and prestigious club. Whilst the company used to target the premium end of the market, they have since expanded significantly, working closely with Qantas to develop more attractive card products that promote loyalty and brand recognition for both companies. In 2003, American Express and Qantas together launched a set of co-brand corporate cards targeted towards small and medium sized businesses with an annual turnover of between $2m - $200m. It came to AMEX’s attention that corporate travel for large organisations came at ease due to their deep pockets and connections in the marketplace so they were keen on providing the same travel related benefits to the smaller developing organisations. The segmented pyramid shows how Amex’s Qantas corporate card targets the small and mid market segments by revenue. In terms of marketing and achieving sales, Amex target directors of organisations as positions at the highest possible levels are decision makers. Market Place Evaluation, Key Competitors Identification, Positioning Options Who are the key competitors? The market for the provision of payment card services in Australia is highly.

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. Competition Among the North American Warehouse Clubs: Costco Wholesale vs. Sam’s Club vs. BJ’s Wholesale Tami Bouldin-Golt March 1, 2013 Provide an overview of the company and/or industry and add any pertinent information relevant to the case (5 points) From eggs to tires to coffee, the everyday consumer can find whatever he or she needs in a warehouse club; at a much lower price from the common retailer the drawback: annual membership fee. The warehouse industry operates on the idea that by customers buying memberships to shop at their locations, the companies can afford to lower their prices beyond that of major retailers. The idea of having a membership to shop somewhere not only allows the company to lower prices but also creates a loyal customer base that tends to come back year after year. There are three major competitors in this industry, Costco Wholesale Corporation, Sam’s Club (a subsidiary of Wal-Mart), and BJs Wholesale club. Costco and Sam’s Club opened in 1983 to immediate success. By the end of 1984, Costco had nine stores and over 200,000 members and became the first company to reach over $1 billion in sales within the first six years. Sam’s Club had sales in excess of $12.3 billion within 10 years. Both companies rely on a low-cost strategy. B J’s is considerably smaller than Costco and Sam’s club but has still maintained success behind a best cost strategy. While BJs has fewer locations, their stores offer over.

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. Benefits A good employee benefits package can be just as important, if not more important than the actual compensation paid by an employer. American Express understands that in a competitive world were all of their competitors are vying for the same employees, there has to be a way to stand out from the rest and they have accomplished that by offering a stellar benefits package. American Express benefits are eligible to all new full time employees from their first day of work. Many employers put new hires through a probationary period before being eligible benefits which can leave an employee responsible for potentially large medical bills if they were to get ill while under the probationary period. On site fitness center American Express offers a fee free onsite fitness center where they hire a personal instructors to come in and lead classes in yoga, zumba, palates, and cycling, just to name a few. I have found these classes are a great way to relieve the stress of work so you can go home with a clear mind and focus more on family life. As an alternative American Express has worked out deals with local fitness clubs so that can receive a discount for joining due to the high demand and limited space in the onsite fitness center. These fitness classes are also great for networking and making contacts throughout the organization. Back up child care American Express offers an emergency backup child care program to all full time employees, this program is extremely.

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. Costco member Joan Silver of Fairfax, Va., described how she was able to return a case of yogurt to Costco within days of purchasing it because it was not the kind she had intended to buy. She said she also has returned jeans that didn't wear well. "We know who you are if you're a member of Costco," Elliott says. If Costco has a recall on any of its merchandise, someone from the store can call customers who purchased the item. "We can just look it up," he says. Refunds are made in cash or back to the customer's American Express credit card, which is the only type of credit card that Costco accepts. (It also accept cash, checks and debit cards.). "Whatever the customer wants is what we want to do," Elliott says. [See: 13 Money Tips for Married Couples.] Kirkland is made for Costco. Twenty percent of all the items in a Costco warehouse are sold under the name Kirkland. All kinds of manufacturers make these products for Costco. Kirkland items range from two loaves of bread separately packaged and then packaged together in a plastic bag to a package of three pounds of raw almonds. Food is key. "Food is your traffic driver," Elliott says. Typically, shoppers head to Costco for basic food items, then walk by the apparel area, and see a designer brand shirt for $29.99 that sells in other stores for $59.99, or they browse in electronics and find a TV that usually costs $2,400 for $1,900. From fresh and packaged foods, sundries, electronics, sporting goods, hardware and.

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. The credit card world is changing along with the 21st Century and leading the way is American Express (AmEx) by offering a first-of-its-kind innovation by partnering with four external environment television networks. The four ways AmEx is externally reaching diversity is through a T-Commerce Program with FOX Broadcasting Company, NBCUniversial & Zeebox, BrightLine, and Shop Small Provincetown (Forbes). AmEx is strengthening their clients’ shopping experience at their fingertips, with access to purchasing items on phones and computers, which also includes thirty-second commercials launched across all gaming consoles, tablets, telecom companies’ satellites and cable to reach their diverse consumer ("America Express News: Press Release.", 2012).. Targeting ranges from mothers and teens to Hispanics, members of the LBGT (lesbian, gay, bisexual, and transgender) community and many other diverse groups of people (Forebs). AmEx is reaching the people who drive their company forward by finding out who has more pull in the purchase decisions made in a particular household. They also analyze how certain age groups purchase their merchandise, how to advertise to those who need support in purchasing a product, and more importantly partnering and sponsorships with Human Rights Campaign (Forbes). Through the partnership with the four companies, AmEx helps to reach their consumers more easily, and make purchasing more accessible. Partnering with a broadcasting company opens.

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. Jake Wright HW #1 6/23/14 Answer the following two questions based on The American Express Card Case: 1. American Express was able to expand its merchant mix over time despite charging merchants a higher discount rate than Visa and MasterCard. Why were merchants willing to start accepting American Express cards? Merchants were willing to start accepting American Express cards because of the patrons that were associated with those cards. The case mentions that the annual average purchase volume for an AmEx card holder ($8,360) was substantially higher than that of Visa or Mastercard, $2470 and $1960, respectively. This meant that the AmEx card holders were more likely to spend more at locations. AmEx used the higher discount rates to study the purchase habits and inclinations of card holders. These studies led to more targeted promotions, which allowed merchants who accepted AmEx to bring in more patrons who were more likely to purchase more at their locations. 2. How does American Express create and sustain a key competitive advantage over major competitors such as Visa and MasterCard? In order to create and sustain a competitive advantage over its competitors AmEx targeted a certain customer and their “lifestyle.” Instead of targeting customers that were transaction oriented, AmEx targeted customers that were “high wallet” consumers, with spending of over $30,000. These consumers were identified as travelers, liked to be different and liked.

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Marketing Excellence - American Express

. Marketing Excellence—American Express Jeff Rock Abstract The paper discusses the expansion of American Express into new market segments. The positioning and timing of this gives the business distinct advantages over competitors. The core business is as strong as ever and continues to deliver value to consumers and profitability to the company. The brand is well placed and will likely increase in value with the addition of under an unserved market segments. Marketing Excellence—American Express Evaluate American Express in terms of its competitors. How well is it positioned? How has it changed over time? In what segments of its business does American Express face the most competition? American Express (AmEx) has expanded services over the past few years which expands lines of business and positions the company very well. The following excerpt from a Business Week article illustrates a major move to establish a new funding stream in banking. “American Express (AXP) has partnered with Wal-Mart Stores (WMT) on its newest product, a prepaid debit card, Bluebird, that’s now on sale in 4,000 outlets nationwide. AmEx has calculated the gains are worth the risk to its gilded brand. If Bluebird proves popular, it won’t just capture more swipe fees for AmEx. It will also accelerate a remarkable, and largely overlooked, shift: American Express is no longer just a charge-card company. AmEx has become a bank—offering a growing list of services that now includes savings.

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Corporate Governance in American Express

. Corporate Governance at American Express By Ahmet Emre Kuzudisli BUS 707 – Corporate Governance 8130 Boone Blvd Suite 240 Vienna, VA 22182 (571) 721-0934 [email protected] Instructor: Dr. Shawn P. Richmond Washington Baptist University, Fall 2014 ABSTRACT This project will serve as a research and report of corporate governance at American Express. The company, founded in 1850, is 124 years and is ranked #67 on Fortune’s list of Best Companies 2014 (Fortune, 2014). There are so many perks of working at American Express such as paid 28 day vacation, Hyatt legal services and educational assistance. After one year employees are able to get 6 weeks of paid vacation following the birth or adoption of a child. TABLE OF CONTENTS Introduction 4 Corporate Background 4 Products/Services 4 Vision/Mission Statement 4 Rank/Industry 4 Jobs/Pay 4 Benefits/Health 4 Board of Directors 4 Analysts 4 Creditors and Credit Rating Agencies 4 Securities and Exchange Commission Reports 4 Risks 5 Corporate Citizenship 5 Conclusion 5 References 6 Introduction This paper will serve as a report on American Express, one of the best companies for employees in 2014. The corporate governance at American Express is highly professional and impressive this is why they are ranked #67th position in all over the world in 2014. This paper will represent how this well-oiled machine.

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Costco and American Express Divorce

. transaction fees: The race to have a monopoly over Costco’s credit card transactions could possibly result in Costco receiving financially appealing offers. It might gain handsomely from lower transaction fees. • Increase in customer size: If Costco shifts to an easier to obtain, more prevalent credit card company, it could further increase its customer base. Conclusion American Express and Costco have decided to terminate their business contract whereby American Express was the sole credit card accepted at Costco. This paper describes the effect on each company’s brand image and explains why it is a losing situation for American Express and a winning one for Costco. References [1] "AmEx-Costco Divorce Shakes Up Card Industry." WSJ. Web. 23 Feb. 2015. . [2] Los Angeles Times. Los Angeles Times. Web. 23 Feb. 2015. . [3] "American Express to End Contract with Costco, Shares Fall." Zacks Investment Research. Web. 23 Feb. 2015. . [4] Williams, Sean. "First Costco and Then Wall Street Declined American Express Company." Web. 23 Feb. 2015. . [5] "How American Express's Costco Loss Makes Discover Look Better." MarketWatch. Web. 23 Feb. 2015. . [6] Volkman, Eric. "AmEx and Costco: What's Behind Their Split?" Web. 23 Feb. 2015. . [7] Web. 23 Feb. 2015. . [8] "Costco Wholesale Corporation." Yahoo! Finance. Web. 23 Feb. 2015. . [9] "Amex Shares Sink On End Of Costco Exclusivity." Forbes. Forbes Magazine. Web. 23 Feb. 2015. . [10] "Amex and.

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. American Express was made one of the best places to work for in the U.S because of their diversity initiatives with the policies towards women employees and minorities. Having a diverse workforce allowed AmEx to have a better understanding of the different markets that they operate in. With all the business principles and leadership values, AmEx has succeeded through their diverse workplace to make the company stronger by hiring talented people to ensure their development of long-term success. Having the different perspectives will help build the business and ensure the employee satisfaction. Part of their diversity efforts are having the networks that are open to all the employees by sponsoring activities such as cultural events, job fairs, volunteer programs, and employee recruitment. Leaders from across the company have set best practices in ensuring they include supplier diversity, selection and hiring, and development and environment. With 11 different networks that include Asian Employee Network, Black Employee Network, Christian Employee Network, Disabilities Awareness Network, Employees Over 40 Network, Gay, Lesbian, Bisexual and Transgender Employee Network, Hispanic Employee Network, Jewish Employee Network, Muslim Employee Network, Native American Employee Network, and Women’s Interest Network. One of their programs that has become well known is “PRIDE” which is an internal network for LGBT (lesbian, gay, bisexual, and transgender.) PRIDE launched as a socially.

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. Visit the American Express Web site (www.americanexpress.com) to learn more about the different cards that American Express offers. Discuss the target market and positioning strategies for each. * How has American Express been able to maintain a competitive advantage throughout the many years of existence? * How has American Express been able to help consumers shift their attitude toward usage of the card? Is American Express taking a proactive approach to managing its marketing environment? How? Halfway down the homepage of the American Express website, there are four credits cards offered. The ones that are offered include personal cards, small business cards, corporate cards, and prepaid cards (American Express, 2015). There is actually a short quiz you can take with only three questions. I took it in less than 10 seconds and it told me that the Blue Cash Everyday Card as well as the TrueEarnings Card from Costco would be my best fit. In my wallet, you will actually find the Blue Cash Everyday Card. There are three featured personal cards available, but when you click on “View All Cards” there are a lot more with company partners and features. The quiz asks about preferred benefits, what form you’d like the rewards, and your total annual income. Until this assignment, I did not know there was a difference between a charge card and a credit card. Whatever card a consumer chooses would depend on their spending habits, what they prefer as their rewards, and.

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. Management Consulting & Strategic Communications Can social media become a platform for social commerce? American Express Case Study: Applying social media analytics to evaluate Link, Like, Love Overview American Express® launched several successful online initiatives that monetize the unique features of social media, such as Location Services check-ins for discounts with Foursquare (Sync, Explore, Save) and discounts through Facebook® (Link, Like, Love). Here’s how the Facebook Link, Like, Love program works. You link your American Express card to your Facebook account. Then American Express delivers deals and offers based on your Facebook activity, pages you like and share, as well as the activities of your Facebook friends. See something you love? With just one click, the discount is attached to your account. When you make the related transaction with your Amex card within a specific time period, the discount is credited to your account. It’s “Groupon without the Coupon,” making it easy for users to redeem offers. And there is no cost or risk to users if they choose not to take advantage of the offer. The promotion offers customers a seamless way to earn rewards for using their Amex card. Lessons from American Express’ Link, Like, Love • Design your social media presence with the customer in mind. Create a seamless user experience that drives conversion. • Design your program to exploit features unique to social media such as social.