Amex case study

Question #1-<Tab/>Which segments exist today in the US credit card market and which new ones will open up to AMEX as a result of this court ruling? <Tab/>The US credit card market is one of the most dynamic and important financial sectors, worth $2.1 trillion. Visa has about a 50% share, MasterCard a 29% share, AMEX a 13% share, and others a 8% share; The US credit card market …showed first 75 words of 3007 total…

…showed last 75 words of 3007 total…billion. The revenue per customer will grow from $4,089 to $5,350; gross profit will increase from $223 billion to $321 billion (43.9 percent increase); and revenue will increase from $262.1 billion in 2003 to $377.16 billion in 2004 (about 44.9 percent increase). AMEX new marketing actions increase revenue about 44.9 percent. The cost of actions increase, however the net marketing contribution still increases by approximately 45 percent. The profit increases by 43.9 percent. AMEX brand value increases by 5 percent, and AMEX's prestige becomes much higher. MVA increases dramatically.