On October 18, 2007, American Express Co. announced a replacement for their longtime chief Kenneth Chenault as the chairman and CEO of the company. Stephen Squeri took over as the leader of the troubled card giant. The company is known for issuing cards to their customers. Besides, the company has its card network and gives loans to some people and businesses.
Challenges Faced by AmEx
AmEx has faced stiff competition from its competitors mainly the banks and other card networks like Visa Inc. At the beginning of this year, the company lost one of its most loyal customers, Chris Burch. Burch, who was named as one of the wealthiest Americans by Forbes in 2014 has now has joined started using Sapphire Reserve card from J.P. Morgan Chase & Co.
PayPal Holdings Inc. is one company that has presented stiff competition to AmEx. The company has recently overtaken AmEx in market value. The company’s market share in the US credit-card has been falling in recent years. In 2015, the AmEx’s stock fell to 25.4% from 26% in 2014.
Chenault said that under his leadership, the company faced various challenges but still survived. For instance, the company went through the 9/11 crisis. In 2008, the company also survived the financial crisis hence he should be held solely responsible for the current troubles.
The greatest challenge that Mr. Squeli faces is regaining customers who have left the company. The company is also unsure where it will get revenue from in the long-term and how it will respond to the emergence of mobile payment methods. Mr. Squeli is determined to attract millennials to drive growth in the future.
About Chris Burch
Christopher Burch is a prominent American businessman who is known as the man bending Burch Creative Capital where he serves as the CEO. Besides, he is also the co-founder of Tory Burch, a fashion brand. His investments are not restricted to any one industry.
Burch has been an investor and entrepreneur for about four decades. He has vast knowledge of consumer behavior and has experience with direct sourcing. This has helped him start over 50 companies in his career. Check one of his awesome investment here, click on businessinsider.com.
For instance, Burch and his brother founded Eagles Eye apparel and later sold it out after seeing its revenue hit $165 million. More to read on bjtonline.com.
More news on this useful link http://www.burchcreativecapital.com/press/