Case_In_Point_7th_Edition_Page001_183_2

N C aseei se nu m er b Aases:
E very three mi r es u tan A meri Aan w iagnse man is w
A meri Aan w men w iagnse ibe this year?
ih tbreast AanAer. H w many
O ne woman every three minutes equals 20 women an hour. Twenty women diagnosed an hour times 24
hours in a day equals 480 woman a day. 480 women a day times 365 days equals 175,200 American
women diagnosed with breast cancer each year.
I rBraz ieaAh aii r aAate re is a Aertai rnu m er b f ani rg spts: A ii rre A ,2 , 0 0A 0 ii r;
re B,
1 , 0 0A 0 ii r;
re C ,5 an 0 0 A ii rre D ,1 0 A0 . ii rre C ges u tf an busi ress i ts ani rg spts are
ist r i b e up trprt t nay i the ther aii r res.H w many spts oes eaAh aii r re get ?
You find the percentage of landing spots each airline has without C. Airline A has 65% of 3,100 spots, B
has 32% and Airline D has 3%. Next you figure out what percentage of the 500 spots C used to have.
Thus A has 65% of 500, which equals 325; B has 32% of 500, which equals 160; and C has 3%, which
equals 15. Add them up and they total 500.
A meri Aan E x ess® p r is faA ig rstff i Ampet in t ifrm a hst f new A rei tAars n
that have
an fee w i rerest t
rrespnse rates.I A meri Aan E x ess p r is Ansieri rg rp p g i ir
annua ts
$ annua 5 0 fee.B hat are the eAnmi As f rp p g ithe r $ 5 fee? 0 (This is a popular case and one
that has repeatedly turned up in interviews.)
Nine out of 10 students think this case is about competition. They focus their answer on strategy and
alternatives to dropping the fee. The first part of this question is not relevant. The real question is “ Bhat
are the eAnmi As f rp p g ithe r $ 5 fee? 0 gIn order to answer this question, you need to ask three
questions:
How many card members does Amex have?
What is the average amount that each card member spends annually?
What are Amex’s revenue streams?
Amex has 10 million card members. Amex card members average $2,000 a year in purchases. Amex
makes 2% from each purchase.