1. American Express & J.P. Morgan Co.
Dylan Anders, Joe Durkin, Anastasia Hadgigeorge,
Lauren Recinella and Daniel Yergan

2. American Express Mission Statement
“We work hard every day to make American Express the worlds most respected service brand.”

3. J.P. Morgan Mission Statement
“At JPMorgan Chase, we want to be the best financial services company in the world. Because of our great heritage
and excellent platform, we believe this is within our reach.”

4. Industry Analysis

5. Industry Analysis

6. Industry Analysis Industry represents 7.2% of GDP in 2015
Industry employed 6.08 million in 2015
Expected 12% increase in employment by 2018
High growth sector = substantial economic activity

7. Industry Analysis

8. Threat Of New Firms (Barriers to Entry)
Low
Many government regulations to open bank
High amount of capital required

9. Bargaining Power Buyers Suppliers Medium
Many alternatives in the industry
More competitors
Low/Medium
Define products and services offered
Costly to switch once heavily invested

10. Competition/Rivalry
Citibank
Discover
Bank of America

11. Threat of Substitutes High Investment Industry:
Commercial and investment banks
Non-bank financial companies:
Insurance firms, mutual funds, and market brokers
Technology that meets basic investment needs

13. American Express Attractiveness
22nd most valuable brand – Business Week
Top 20 most admired company – Fortune
Diverse customers and geographics
Profitability (through structure)
Serves two-sided market
Serves a diverse set of customer groups
Consumers, small business and large corporations

14. J.P. Morgan Attractiveness Profitability (through structure)
Ranked top 5 - America’s Ideal Employers
Top Military Friendly Employers
World’s Most Admired Companies
Profitability (through structure)
Multiple segments such as banking & asset management
Central Objectives
Clearly communicating and enforcing corporate standards
Enhancing board and management structures

15. Strategic Analysis

16. American Express Differentiation strategy
Focuses on spending rather than transactions
107 million cards and 6 billion transactions
Issues cards through its banking subsidiaries
Employs a closed-loop network
American Express Bank

17. How Did American Express Strategically Position Themselves
Targets customers likely to spend more
Able to bypass issuers and inquirers
This means larger revenue for the firm
Offers rewards and incentives
Place high priority on customer relationships
Delinquency rate is only 1.07%

18. J.P. Morgan Differentiation Strategy Focus more on brand identity
Emphasizes trust and loyalty
Five forces model
Merged commercial banking and investment banking
#1 in customer service since 2012 – ACSI

19. Financial Analysis

24. Work Cited
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express-gains-a-competitive-advantage-from-its-closed-loop- network/#debe5cd4be71

25. Work Cited
goldman-sachs-jpm-gs.asp
strategy-report
industry-outlook.html