Identify several ways in which American Express Interactive (AXI) has demonstrated good strategic planning in the deployment of Internet and related technology. Please be sure to include an analysis of how it used technology to diversify its conventional business from being only a corporate travel services provider to also being an application services provider.
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 catering to business travelers. According to Porter, access-based positioning is " a function of customer geography or customer scale- or of anything that requires a different set of activities to reach customers in the best way." AXI by reaching to business travelers positioned itself to corporate clients. Focusing on business travelers was AXI objective and to keep them interested in there service, they invited them to there headquarters to provide feedback, and suggestions as to what the consumer would like in the final product. This invitation had a dual purpose, one it allowed AXI to market its product and sell its brand before it was launched as stated earlier.
