The situation analysis of AIA Group is mainly based on the changes that are taking place in the external and the internal environment of the company. The company has been able to expand its operations in 18 countries and has also gained huge number of customers based on the services that are provided to them. The situation faced by AIA Group is mainly related to the internal strengths and weaknesses and the external opportunities and threats that are provided by the environment. Moreover, the industry-related factors are also considered to be an important part of the overall situational analysis and the strategies that can be implemented by the firms.
Insurance is considered to be the legal agreement that is formed among two different parties who are the insurer and the insured and this is also known as the insurance policy or insurance coverage. The insurance and finance sector mainly comprises of the establishments that are engaged in the financial transactions including liquidation, creation or the change in the ownership of the financial assets. The insurance services that are offered by a company like AIA are mainly based on the financial coverage that is provided to customers for losses that they can bear in a certain situation. Insurance companies mainly offer the risk management services that are based on the contracts of insurances.
i) Business Level Strategies
The business level strategies that have been implemented by AIA Group were based on increasing its share in the market and thereby forming a competitive advantage related to differentiation of the services. The formation of a corporate culture that is customer-centric in nature is considered to be a major factor that has led to formation of the effective business strategies. The mergers and acquisitions have also played an important role in ensuring that AIA Group has gained growth and success in the industry and has also developed a huge customer base.
ii) Corporate Level Strategies
AIA Group has developed its corporate strategies based on the five pillars for the ESG programme that include health and wellness, sustainable investment, green operations, effective governance and people and culture. The aspects of ESG are mainly focussed on various areas which can deliver highest values for the stakeholders. The ESG performance of AIA Group has thereby led to the corporate strategies implemented by the company and the sustainable performance levels of the organization. The ESG programme of AIA has been developed based on the feedback provided by the stakeholders and their needs.
Competitive Analysis and Advantage in the industry
The major competitors of AIA Group in insurance and financial industry include Sedgwick, Zurich Insurance and Talanx Insurance. The other similar companies that aim at providing similar types of services and products to the customers include United Healthcare and Transamerica. The services like insurance, investment products and the retirement benefit-based products are also provided by the competitors of AIA Group in the industry. The competitive advantage that has been gained by AIA Group in insurance sector is mainly based on the huge variety and diversity of the services that are provided to customers by the subsidiaries of the organization.
AIA Group is a leader in the insurance segment and it is a highly powerful transnational organization based on the overall corporate control that has been gained related to financial stability. The worldwide recognition that has been gained by AIA Group is mainly based on the presence developed by the organization in 18 countries. The affordable policies provided by AIA Group also attract customers and this has led to increase in the revenues and improvement of the financial position.
The huge levels of investments that are made by AIA Group in the research and development facilities of the company have reduced the financial resources of the company. The diversity levels in workforce of AIA Group and the high rates of employee turnover have also increased cultural conflicts that are faced by the company. The company has also made low investments in the services that are customer-oriented in nature and this has increased its weakness in the insurance industry.
The opportunities that can be used by AIA Group are related to online operations and the ways by which online services can be accepted by the customers. Social media can also play an important role in ensuring that the company can enhance its position in the industry and the services and products can be managed effectively. The future trends in insurance industry can be used by AIA Group for the purpose of improving the revenues that are gained in the sector.
The increase in competition levels and the technologies have proved to be a major threat being faced by AIA Group and this has also lowered profits being gained by the company. Fluctuations that occur in the interest rates are also considered to be major aspects that have a huge influence on the strategies of AIA Group.
Political factors – AIA has its operations in various countries and the government policies and capacities are different based on which the company can aim at developing the strategies. The political unrest in different companies can affect the operations and revenues of the company.
Economic factors – The slowdown that has occurred globally has a negative impact on the revenues of AIA. Reduction in sales of the smartphones are also important factors that have an impact on revenues of AIA. Economic aspects can affect the operations and decisions made by AIA and the countries that offer high rates of interest can attract the firm for making investments.
Social factors – The expectations of users related to innovative services and products related to the surge in the applications on the mobile platforms have influenced strategies of AIA. Social factors that are mainly based on the cultural aspects and norms can influence the types of products that can be offered by AIA.
Technological factors – Social media marketing is considered to be a major aspect that is based on the technological advancements that have taken place in the insurance industry. The technological advancements in the different countries have increased the importance of social media for marketing and promotional activities of AIA.
Environmental factors – AIA has faced major criticisms along with the other companies. The growth in concern related to global changes in climate and increase in levels of pollution are considered to be major environmental aspects that influence the strategies of the company.
Legal factors – Intellectual property laws and the laws based on consumer protection can affect the overall operations and strategies being used by AIA Group. The laws related to anti-discrimination and human resources influence the strategies of AIA.
i) Demographic Characteristics of Market
The various demographic characteristics that are a part of the target customers of AIA include the age, income levels, gender, geographic location and education levels. The customers belonging to high income groups and belonging to various ages are a part of the target market of AIA. The customers who are a part of the different ages and require future insurance services are mainly targeted by AIA Group in the sector.
ii) Demographic Characteristics of Market
The various demographic characteristics that are a part of the target customers of AIA include the age, income levels, gender, geographic location and education levels. The target customers of AIA Group have various levels of incomes and the value of insurance being purchased by them are also based on the income.
iii) Psychological Characteristics of the Market
The factors that depict the psychological characteristics of the target customers include personality, lifestyle, social class, interests, behaviours and habits. The customers who are targeted by AIA Group are mainly related to the psychological aspects of the fear that they have related to future. The future activities of customers and their needs are mainly fulfilled by the services and products that are offered by the company.
iv) Behaviours of the Target Market
The behavioural aspects that are related to the segmentation of target customers are based on the types of the products that are consumed by them and the strategies that can be used by AIA Group to attract the customers. The changes that are constantly taking place in the financial industry are also able to influence the behaviours depicted by customers of AIA Group.
v) Strategies Appealing to Market
The customer satisfaction strategies that are implemented by AIA Group have increased the appeal of the company in the insurance sector.
Marketing Mix of AIA
i) Product Strategy (Product Mix)
The various products that are offered by AIA Group to the customers include Medical Protection, Life Insurances that can cover the medical expenses and provide protection from the critical illness aspects.
ii) Pricing Strategy
The pricing strategies that are used by AIA Group can be mainly related to the needs of customers and the types of incidents that need to be covered as well. The affordability of prices is considered to be an important factor that can influence the revenues being gained by AIA.
iii) Promotional/ Advertising Plan
The advertising and promotional strategies being used AIA Group are based on increasing presence of the company on social media platforms. The company also places its advertisements on various mediums that include radio, TV, outdoors and print.
i) 4Ps’ comparisons with competitors
The marketing mix of AIA Group can be compared to the competitors for understanding its position in insurance sector.
ii) Product – The competitors of AIA Group like Zurich Insurance and United Healthcare offer similar products and services to the customers.
iii) Price – The prices of services that are offered by AIA Group are also based on the effectiveness levels and the cover that can be provided to the customers as well.
iv) Place – The supply chain and distribution process of the competitors are also better in comparison to AIA Group.
v) Promotion – Promotional strategies being implemented by AIA Group are mainly related to the reach that is developed by competitors towards the customers.
vi) Strengths’ comparisons with competitors
Research and development are done by competitors.
vii) Weaknesses’ comparison with competitors
Lawsuits are not always faced by other companies.
viii) Organization’s Competitive Advantage
The competitive advantage of AIA is based on the diverse portfolio of services and products offered to customers.
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