In this unit, you will complete the case study of the company that you chose in

Question

In this unit, you will complete the case study of the company that you chose in Unit II (Allianz Global Assistance - Travel Insurance Company) and have been researching throughout the course. Respond to the four writing prompts below. Your responses must include information from academic and scholarly research, including at least two resources from the CSU Online Library and at least two other online sources.

1. Create a case study summary of the company you have chosen, including a general overview of the company, its external environment, and a list of its current strategies and objectives.

2. If the company continues with its present strategies and objectives, where will it be in five years?

3. If you were the CEO of the company, what strategies would you recommend, and why?

4. Describe the competitive strategies used by the company’s main competitors. Which of these strategies are the most effective? How can your company combat these strategies? Support your answers..

[I have question 1 completed below, I need assistance with 2 - 4]

Case Study Summary: Allianz Global Assistance (AGA) has been evaluated to be weighted at a 3.0 in the EFAS analysis – making their score equivalent to the national average. Opportunities that AGA is successful in are making movements toward the keeping up with Technological Advancements and working to apply them in their services with employees as well as customers. AGA is also doing well in increase AAA Contracts with the different locations and working to increase contract types to meet the needs of each AAA branch. The shortcomings of AGA is exploring other market sub-niches that can tie into the current Travel Insurance Coverages available. Threats AGA have been successfully addressing are responses to the natural disasters that seem to be increased in number each year as well as maintaining their competitive edge with other companies in B2C sales. Threats that need to be addressed to remain competitive is AIG’s movement to insure 2 major Travel Suppliers that were once partnered with AGA and countering fraudulent activity.How can AGA better address the categories identified in the EFAS evaluation to obtain a 4.0+ score?

The following image is the EFAS evaluation - please use this as a guide to address the case study

>External Environment<

>Opportunities<

A) New Automatize/Robotic Technology - This can address increased volume for sales/claims that are being experienced in all departments by handling basic inquires and claims.

B) Asset Management - AGA can create a long-term profitable portfolio which has made them secure of good returns for the long run – the asset management industry rose by 7% in 2014 and 8% in 2015. ( Bhasin, 2017)

C)Investments - Pairing with other companies to diversify their market – i.e. Automotive w/ Roadside Assistance (AAA), International Health with Corporate Assistance to enter into B2B2C

D) AAA Contracts - There is opportunity to continue growing with AAA based off of each branch’s demands/needs. Travel and roadside assistance is just the surface of what AAA offers and to continue to branch within AAA , i.e., Gas, Auto Insurance, Dining, Loans/Banking, etc.

E) Partnering with Environmental Groups and other NonProfit Organizations - Increases customer awareness of company’s contribution and also ensures that they stay within the realm of legal, ethical, economic and discretionary responsibilities. (Allianz Partners, 2018)

F) AGA could extend their niche to include Boat Rental Insurance/Equipment Rental Insurance/Rental Property Insurance - Travel Insurance is only the tip of the iceberg in potential coverage and can be expanded based off of other sub-niches. (Thorson, 2018)

>Threats<

A) Expedia.com contracts with Competitor (AIG) - Expedia is one of the world’s largest travel-site operators by bookings – AGA has lost this contract for the 2018 Fiscal year – causing a huge shift in potentials customers and sold policies. (Barlyn, 2018)

B) United.com contracts with Competitor (AIG) - United Airlines is a major US airline and has grown to be the 3rd leading worldwide airline - AGA has lost this contract for the 2018 Fiscal year – causing a huge shift in potentials customers and sold policies. (United, 2018)

C) Regulations - AGA is a multinational corporation and has to keep up with the changing regulations of every country it operates in making it complicated. ( Bhasin, 2017)

D) Increase in Natural Disasters - AGA has major changes in the climate and natural disaster taking places they would have to pay more the insureds.

E) Fraudulent Activities - Insurance fraud is on an increase and account for almost 10% of the overall insurance losses – leading to trouble in the company’s balance sheet.

F)Other Competitors in B2C Sales - TravelSafe, Travel Guard, and Tralex are AGA’s top competitors. TravelSafe generates apx $608.1K more revenue than AGA; Travel Guard has 37 more employees than AGA; and Travelex generates $4.4M more in revenue than AGA. (Owler)

>Strategies<

There are five strategies that Allianz follows namely: 1. Product: Launch new products to optimize and diversify our portfolio 2. Price: Leverage data to appropriately price risk 3. Channel: Drive sales through new channels and increase our investment in B2C 4. Service: Efficiently provide the highest quality of service 5. Associate Engagement: Provide a collaborative and trusting workplace that instills pride, loyalty and satisfaction among our associates. (Allianz Partners, 2017)

>Objectives<

Objectives: The Allianz Global Assistance (AGA)’s business strategy is based on the renewal agenda. The vision of the company is to leverage their insurance and assistance expertise in order to grow our existing lines of business and expand into similar markets while creating value for our associates, customers, shareholders and community.

Explanation / Answer

2. AGA's strategies such as launching new products to expand and diversify their portfolio, Pricing of their products according to the market scenario, Identify new channels and drive new sales throught them by increasing their investment in B2C, Highest quality of service and improvement of work culture and credibility in the market. These are few strategies that focuses on continuous growth as it spells a long-term investment. With expansion in products and channels will give AGA the leverage to target various consumer groups and B2C being the major contributor in the insurance sales, it is defineitely a better idea. But, what would be interesting is how AGA uses technology in their strategic initiatives. The use of technology is the need of the hour and the use of technology efficiently and effectively is the success mantra for most of the companies. If AGA deploys the best of technology in their services and products that they launch, they would definitrly be in a stronger place in the next 5 years.

It is very important that AGA moves along with the market conditions rather than getting stuck with their traditional strategies. There have been lot of organisations who have refused to adopt chnge and have failed miserabky. Therefore, it would be interesting to see if AGA implements their strategies keeping in mind the trends in the market and innovate accordingly rather than following their traditional strategies.

3. If I was the CEO of AGA, I would definitely follow the below steps:

a. Focus on best practices that competitor is following and develop strategies on those lines. By doing this, the first thing that I can do is secure my success ratio in the market. Also, with better implementation of these best practices, I will have a batter competitive edge in the market.

b. Build a proper and lovable culture in the organisation which derives values and commitment toward the success of the organisation.

c. Lower the risks by investing more in reduction of fraudulent activities. Have a better and secure system deployed so that there is lesser risk and keeps our balance sheet safe from being grumbled.

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