Customers are loyal to existing brands (American Express)

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It takes time and money to build a brand. When companies need to spend resources building a brand, they have fewer resources to compete in the marketplace. These costs positively affect American Express. … This statements will have a short-term positive impact on this entity, which adds to its value. "Customers are loyal to existing brands (American Express)" will have a long-term negative impact on this entity, which subtracts from the entity's value.

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