Insurance Companies: Allstate

1573 Words4 Pages

Introduction

Allstate must consider a loss control strategy because of the unforeseen impact that can affect their bottom line. Understanding the most common and costly claim payouts such as wind, burglary, fire, water, and physical damage can direct Allstate toward a more streamline approach in addressing some controllable claims, which will reduce payouts and increase profits (Allstate.com, 2011).

This assignment will further provide alternatives that can be used as a strategy so that Allstate can achieve additional growth that compliments their strategic vision of reinventing protection and retirement for consumers. In addition, provide clarity as to why differentiation is the best generic strategy, customer intimacy is the best value discipline, and market development is the best grand strategy. Keep in mind, the selected strategies are more in alignment with Allstate and best because it presents additional opportunities that Allstate can explore to drive growth and their ratings.

Generic Strategy

To begin, Allstate is a profit driven organization. Subsequently being categorized as an exclusive low cost leader under the generic strategy is not accurate. However, differentiation is a better strategy for Allstate. Reason being, differentiation is more so tailored to attract specific customers who desires an exclusive product or feel as if their product is superior. Allstate has a unique marketing strategy that make customers feel as if their services are so different and unique, which builds customer loyalty; plus, customers feel safe. This distinction is achievable with a strong workforce that represents the value of the company and communicates it effectively with their clients (QuickMBA.com). Even more important, this...

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.... In addition to the personal presentations that are conducted through Allstate’s social responsibility efforts, virtual demonstrations can be created to provide a more impactful experience. Stimulations activities can provide for a more advance learning experience. Allstate can partner with museums and specialized exhibits worldwide to create attractions that engages learning about car, fire, and home safety, etc. In fact, Allstate can start a safety mobile that travels to different schools, universities, day care centers, and universities. Even more innovative, is creating stimulations for college students who is studying quality control, science, engineering, etc. these students can become knowledge in their area of study on topics that affects the insurance industry. Simply, this concepts mimics the virtual organizations that University of Phoenix offers.

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