American Express Interactive Marcus Eaton Carole Walls
Introduction AXI Travel was motivated by economics, competitive dynamics, and the potential for follow on opportunities.
Economics During the early 1990, the major airlines cut commissions for 10% to 8 % and put a $25 cap on each segment
Competitive Dynamic “ We won’t be trapped in a dead technology” AXI wished to establish a leadership position in defining new standards for the industry
Partnership with Microsoft Why partnership with Microsoft? Good business strategy ?
Key Issues and Recommendations Kenneth Chenault, President and Chief Operating Officer
Key Insights Set1: Identify high priority business initiatives. Set2: Select the implementation approach that is most appropriate for each initiative and modify it based on the business and organizational context New Venture Development Venture Integration, or Internal business Development. If internal Business Development, should you pursue a process reengineering a new venture incubation approach?
Key Insights Step3: Build the capabilities required for the new e-business initiatives you are pursuing
Questions How important was AXI travel to American Express? How has the business model for AXI Travel and the follow-on AXI interactive online service offering evolved over time? Evaluated the actions taken to implement AXI Travel.
Questions How successful was the company in building, launching and then integration AXI travel with the company’s traditional business? What challenges did the AXI Travel Team face:? What challenges did the CSI team face?
Appendix A Enter new lines of business and/ or add new business models Add functionality, features or capabilities to improve current product/service offerings Enhance Expand Add new product/service offering or enter new geographic markets Exit a business or market, or drop a product/service offering
1997: AXI Travel Enhance
The Full Story Extend Enhance Expand Exit American Express Interactive Business Model
Exhibit 4: The Internal Business Development ProcessInternal Business Development