Service System Applications – Case Of American Express

Service System Applications – Case Of American Express

Hello, and welcome to this presentation on service system applications.

American Express Inc. is selected for analysis because information regarding its service systems and its customers is publicly available. Notably, this presentation will cover the company background, the service systems of the company, the strengths of the service systems, weaknesses of the service systems, and industry comparisons before a conclusion is made. The aspects are presented in the following sections.

 American Express Company is a multinational financial services company that offers a variety of products and services to various markets across the globe. The company, founded in 1850, is headquartered in Manhattan, New York, United States (Swartz, 2020). The company employs more than 77,300 people to advance the provision of its products and services. Some of the company’s products include charge cards, credit cards, traveler’s cheques, and corporate banking. On the other hand, the company provides insurance travel services. The sale of these products and services enabled the company to raise $50.68 billion in the latest fiscal year of 2022.

American Express operates various service systems which are also available for sale to external parties. First, the company operates vendor payment systems that come in handy in helping the company to make payments to multiple vendors at the same time without violating due dates. Second, the company operates customer service support systems that ensure customers are offered the necessary support in their encounter with the company. Third, the company operates control employee spending systems, which offer solutions to complexities encountered in spending by employees of the company. Lastly, the company has automated payment systems that help reduce manual work from daily operations.

American Express Company reaps various benefits from the various service system applications. The benefits include increased efficiency and transparency in operations, elimination of personal reimbursement processes, streamlined accounts payable and reconciliations, improved cash flow and working capital, stronger vendor relationships, and various rewards pending the use of card services.

The various service systems American Express operates have different strengths that enhance the company’s competitiveness. First, the systems are highly efficient, which ensures the company maintains a competitive advantage in the market (Muninger et al., 2019). Second, the systems are highly secure and can be relied upon for service delivery to customers. Third, the systems are significantly scalable with a feature of flexibility which ensures that they adapt to different circumstances within the industry. Thus, the systems have ensured better customer care to customers. Fourth, the service systems are always upgraded to match the latest technology and market situations, and finally, the systems ensure ease of doing business between clients and employees of the company.

The systems also have certain limitations despite the strengths that have been discussed. First, they are readily imitated by other businesses in the market, who then utilize imitation to outbid them. Second, although often used by firms, the systems have a minimal environmental impact, which is a significant concern in the current business world. Thirdly, although universal, the service systems do not work for everyone. Finally, the costs associated with acquiring and maintaining the service systems are relatively high, significantly raising the company’s overall costs.

American Express operates in a very competitive industry characterized by many participants. However, the primary competitors include Discover, Visa, and MasterCard. Despite the high competition in the industry, American Express has managed to obtain a competitive advantage in the market. For instance, the company eliminated the use of intermediaries to access its primary market, which saved it on costs. Additionally, the company has access to many institutions with essential details of customer information, such as Transunion, Experian, and Equifax, compared to competitors. According to Gilbert (2022), the company has a better rating in the industry than its major competitors. Notably, this explains why it has become a market leader with innovative products and services.

 American Express is a high-performing company regarding service systems applications. As discussed in this presentation, the company has various service system applications that enhance its service delivery to customers. Based on the strengths of the service systems, the company can reap important benefits that drive its competitive advantage in the industry. Essentially, this helps the company to save on costs and, thus, compete better with competitors. It is recommended that the company should expand its service systems into new markets to achieve even more benefits.

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Assignment Content

The purpose of this assignment is to align proper service system applications to certain industries. You will also analyze and evaluate a company’s customer service strengths and challenges.

Select a company you are familiar with, such as your own employer or a public company, on which you know you can find customer service data.

Identify the type(s) of service system used in the company or a certain part of the company.

Create an 8 to 10-slide PowerPoint presentation, including detailed speaker notes, that outlines and highlights the system’s strengths and weaknesses. Include an analysis of industry comparisons if available.

Choose a service system from this assignment that you will implement in the Supply Chain Template assignment in Week 6.

Cite references to support your assignment.

The company I’m using for this assignment is American Express.