• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month
Page
  1. 1
    1
  2. 2
    2
  3. 3
    3
  4. 4
    4
  5. 5
    5
  6. 6
    6
  7. 7
    7
  8. 8
    8
  9. 9
    9
  10. 10
    10
  11. 11
    11
  12. 12
    12
  13. 13
    13
  14. 14
    14
  15. 15
    15
  16. 16
    16
  17. 17
    17
  18. 18
    18
  19. 19
    19
  20. 20
    20

Five Forces analysis of More Than insurers.

Extracts from this document...

Introduction

´╗┐Five Force Analysis BAAM 3 Task 3 Ian Carr Maria Brown Student No 099014890 ________________ Contents Page Introduction Page 3 SWOT Analysis Page 4 Porters Five Forces Model Page 5 - 8 Competitive Rivalry Page 9 -10 Development of Technology Page 11 Restrictions of this Model Page 12 Conclusion Page 13 References Page 14 Appendices Page 15 Introduction This report intends to understand through strategic management the competitive position of the business, by looking at the five force analysis model. More Than, part of the RSA Group, have been established for over ten years. In August 2010, the organisation implemented a new Motor Aggregator Product known as echoice. The key objective was to deliver a motor product, specifically targeted and priced for the aggregator market. echoice offers core coverage at competitive prices, with a range of add-on services promoted throughout the product lifecycle. This product was developed to enable RSA to improve profitability in a highly price-sensitive channel. This e-self service product was introduced to avoid increase in operation costs and to improve customer service and expediency. This product is still a relatively new proposition to the market. This was a product that the organisation had to be aware of how the competitors would react, but also customer feedback was also something that had to be considered moving to a self service product. ...read more.

Middle

Compared to five percent using a traditional broker. The customers both competitors are attracting can be found in Appendix 2 It states on investopia (2012) that ?During this period of rapid growth, companies will eventually begin to lower prices in response to competitive pressures and the decline of costs of production, which is often referred to as economies of scale. But costs decrease at a higher rate than prices, so companies entrenched in growth industries often experience growth in profits as their product or service becomes fully accepted in the marketplace.? http://www.investopedia.com/articles/basics/04/030504.asp Competitive Rivalry Lynch (2000) states that it is difficult to differentiate products or services, than competition is essentially price based and it is difficult to ensure customer loyalty. echoice was initially branded from RSA on its launch in 2009 but then late 2011 changed to More Than, this was to relate to the More Than branding a well known direct insurer and to enhance the Brand Strategy to be more appealing and competitive on the aggregator market. A key initiative within More Than is to drive Brilliant Service and to be set aside from other insurers not just as being competitive but also for the service the customer receive. It is reported on the Investopia website (2012) that ?The insurance industry is becoming highly competitive. ...read more.

Conclusion

This is shown for example on the enormous growth of the e-commerce sector. Although this tool is a useful early step in analysing the environment, it is initially static, where as the competitive environment in practice is constantly changing, forces can vary more rapidly than the model can show. Conclusion Using the five force model can help a useful early step to help a business become more effective. It is especially useful to look at competitors when customers have a change of habit and need to have something new in the market for example web/direct insurance. Competitive Rivalry is good for customers as it means there is always a battle to keep costs low. Porter?s analysis proceeds on the basis that, once such analysis has been undertaken, then the organisation can formulate a strategy to handle results: predictive rather than emergent. (Lynch, R 2000) Barriers to entry are unique characteristics that define the industry; they reduce the rate of entry to new firms, maintaining a level of profit for those already in the industry. In the Insurance industry you just have to view adverts on the TV. Other insurers offer unique advantages to take insurance out with them. Although echoice and More Than have updated their internal systems they are unaware what competitors have as their next barrier to entry. Therefore this is a continuous process the organisation needs to do looking at new initiatives of how they can continue to grow the business at the right cost and differentiate themselves from others. ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our University Degree Management Studies section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related University Degree Management Studies essays

  1. The report will look into Willmott Dixon Group and its current business performance and ...

    This is mainly because of the fierce competition for the decreasing amount of construction work available. This all leads to Willmott Dixon taking a more realistic approach regarding its performance while the recession continues. Threat of Substitutes Clients may decide to refurbish existing offices rather than build new facilities which

  2. Strategic Analysis of Burberry Ltd. In this report three models will be used: PEST ...

    During this time, Burberry opened stores throughout the United States targeting upper-middle class people (Bohdanowics and Clamp 1994: 48). By 1996, Burberry had accumulated a record six Queens's Awards for Export Achievement and ranked among Great Britain's leading clothing exporters.

  1. Porters Five Forces - Easyjet, Ryanair

    in the Middle East continue. The airline has no control of these costs. 3. Bargaining power of buyers Flight travel has increased rapidly over the last five years. Growing economies across Europe have given people higher disposable income and increased leisure time. There are many LCA's operating the same route thus giving the buyer considerable choice.

  2. Perform a SWOT analysis for IKEA.

    The next one is the opportunities. This part successfully identified that the opportunities that IKEA hold which may help to expand their market. Threats are last part which covered in this SWOT analysis. With thoroughly knowing the threats that IKEA faced on, it may not only able to minimize it, but also may help to avoid it to take place.

  1. ITC - diversification strategy

    ITC made its position in the big league with the introduction of 'Sunfeast' brand of biscuits in 2003. Products under this brand are available in over 150 markets. ITC is No. 3 after Britannia and Parle in this segment and has a market share of 11-12%.

  2. GAP analysis for Shell.

    This would not only benefit the organisation in terms of its environmental position but also in stock available for sale. SAOTAGE why up blah blah..........security......lost revenue.....etc To continue to improve performance and achieve its objective of world leadership in energy and petrochemicals Sell needs to refine and develop its areas of competitive advantage.

  1. Metabical Co. Pricing policy Case Study. In order to profitably satisfy customer needs, ...

    the drug, we analyze three different possible demand forecast models, based on a CSP survey: * Target market of 15% of the overweight individuals, who are actively trying to lose weight and are comfortable using prescription drugs in order to achieve said goal.

  2. Swot & 5 forces analysis for Zara.

    On the other hand, Zara prices its apparels based on the country and the spending power of the people. Hence the affordability for Zara products increases leading to better sales. 7. Scarcity and Opportunity: Since Zara follows a ?Just-in-Time? model of designing and manufacturing, Zara produces the latest trends and keeps replenishing its stock twice a week in its store.

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work