American Express Interactive (AXI) used many different strategies to deploy its Internet and related technology. By recognizing the potential of the Internet and the vast amount of people it could reach globally. American Express seized upon the opportunity, and became a market leader in the online travel industry. Moreover it allowed American Express to gain a greater market share, competitive advantage and market its product before it became available. By aligning with well reputable companies, such as Microsoft, consumers gained trust at the same time creating an image for AXI, which allowed them to pre-sell its product. Thus reducing the risk of consumers trying other services and avoiding the possibility of a new entrant taking over its potential consumers. Another way AXI used excellent strategic planning was by segmenting their consumers by strategically cater

The use of leading edge technology has both advantages and disadvantages. a) In what ways is the use of Internet-based travel technology desirable at AXI? b) What are some common potential risks for a company employing leading-edge technologies?

There are many ways that technology can open doors, and create risks for companies. Internet-based travel at AXI can be desirable because it allows them to market globally and at a very low expense. Internet is available throughout the world, so by making information readily available via the Internet. This cuts down marketing costs to a bare minimum, which once would have taken ample time and effort. This in turn allows AXI to gain a competitive advantage to its brick-and-mortar competition and broader its customer base. In addition it gives existing and potential clients access to information anytime and anyplace. Offers them convenience at the same time reducing overall costs at AXI. The Internet, allows AXI to cut down on the number of agents that it has, because all the information becomes readily available. In addition the technology allows buyers and suppliers to do transactions with one another via the Internet. Clients of AXI can do their transaction without having to make a phone call, offering convenience, and comfort. Furthermore, by integrating the two systems, it allows for more information to flow across channels, and partners, at the same time more ideas, and solutions to these ideas are created. Another way that technology is desirable at AXI, was by encouraging clients to use the Internet travel system, they could offer perks and apply them to the corporate databases that they maintained. Moreover by being the market leader, in the information era, and aligning itself with major technology firms, AXI created an image for itself. When new entrants in the technology industry arrived, AXI, by being a leader could

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