Marketing analysis for the Allianz Group

securities attentioning analysis for the Allianz meetingAllianz Group is a bigger compevery which providing indemnity and financial go. likewise that, Allianz SE which is belongings community of outside(a) group located in Munich. Allianz was found in Berlin. Ger umpteen in 1980 (Allianz, 2010)Allianz Group, with 152,000 employees in the worldwide, which has over 75million clients in round 70 countries. In the indemnification securities constancy, Allianz is the mart leader in the Ger umteen and has tough global presence(Allianz, 2010).Allianz was a historical smart set which has more than than 100 years. hitherto Germany defeat in the World warf be I still Allianz was s pocket-sizedly perild outside Germany to European grocerys (Allianz, 2010)At the national socialist Nazi Germany in the era after 1993, Allianz fit in with the guidelines. After World War II, Allianz was start to rebuild post in 1945. Allianz was start to lodge international by spreading its activities to some country in Europe and Americas in year 1950s throughout 60s, 70s and 80s. In year 1990s, Allianz began to threaten into the Asiatic grocery store. (Allianz, 2010).Allianz Group too expanded its asset manold agement parentage. Today, Allianz Group is atomic number 53 of the worlds tip financial service providers (Allianz, 2010).The mission of AllianzThe mission of Allianz is to achieve sustain competent growth of our competitive strength and values. In order to achieve this mission, they utilize a series of measures which characterize as 3+one program. They concur an overall 3+1 programProtecting and enhancing the capital base.considerably strengthening the operating profitability.Reducing complexity.+One Increase sustainable competitiveness and value.The organization structure of AllianzBoard of attentionSupervisory Board world(prenominal) Executive CommitteeInternational consultatory Board and Joint Advisory CouncilEmployeesThe organization culture of AllianzAllianz Group culture combines German characteristic and international flair. In Munich, a lot of language for piss be victimisation by the deal when they talking to each other such(prenominal) as French, German, English, Italian, Chinese and etc. However Allianz values local cultures and markets situation does not dictate a one size all fit declaration for the individual location. That why Allianz has defined a schema framework to directive rejectards. So that Allianz Group in the worldwide green goddess adopt the cultural and descent fancyp elevator requirement to specific regions (Allianz, 2010)The macro environment analysis gent analysis is concerned with the environmental influences on a business. PEST is stand for Political, Economic, Social, and Technological factors of the external macro environment. Political factors often look at the organisation policies. The sparing factors relate to diversifys in the wider economy. Social factors is relating to th e cultural aspects. The technological factors relate to the application of radical inventions and ideas. It is an historic tool to understanding risks associated with market growth or decline, and as such the position, potential and direction for a business or organization (Thompson, 2002). spare-time activity argon the different factors bear on the Allianz redress in UK.PoliticalSome of these factors had a good jolt to the travel, car and home restitution in the UK. The organisation travelers awareness shake up has brought awareness to the human race about the dangers of traveling uninsured highlighting the valuable costs of medical treatments ab alley. The travel industry has supported and benefited from this as it summation their sales prospects.The minimum car indemnification implemented by the political science is third party cover. This has a very good partake on the car indemnification industry as this guarantees a sale on every car in the UK and beca wasting disease 76% of adult in the UK lead a full driving license, all of them are potential customers (Birtles, 2002).sound prevalent data revealed that near(prenominal) critical illness cover calls are made by mint under 40. (Speedy, 2004) This has been good virgins for age dedicated home and health care insurance companies as small cover cl drifts direction little(prenominal) liabilities. However, according to the Bank of England, the rising valuate is slowing down the consumer spending. This has badly affected the whole of the insurance industry as hatful had less money to spend on high exchange exchange premiums or packages.EconomicIn todays world facing inflation, people are more work-orientated, so earning more again translating to larger disposable incomes allowing people to last comfortably take advantage of more expensive schemes in insurance such as taking fully-comprehensive cover rather than third-party (Speedy, 2004). some other economical fact is that we are surely at the boom horizontal surface of economic cycle and so people are better off. This means that as stated above people are able to live more comfortably and on a general level are better able to afford things like food, shelter, clothing and health care. This translates to less illnesses which mean that insurance companies have less payout to make as less people fail ill (Speedy, 2004).Another important factor to strike about the general prevalent in a boom level of the economic cycle is that people are more likely to pay for convergences in the service industry. So things that they may have refrained from due to a lack of money like health insurance volition be more welcome during a period of boom so addition revenue for insurers (Birtles, 2002).SocialNowadays, Allianz facing a lot of social problems such as increase of young driver. They choose to insure on parents cars on with saving the money to corrupt their own cars. Young drivers aged amid 17 and 25 to a fa ult have a higher take on of being in an accident so they are more pricy for an insurer to cover so insurers charge more. For this reason the increase in young drivers translates into larges revenues for insurance companies due to the larger premiums. (Birtles, 2002)Besides that, todays society is the increase in the racing culture with large emphasis placed on driving faster and better looking cars. Modified cars are a cheaper alternative to buying a sports car also increasing insurance costs (Speedy, 2004) .In comparison with 30 years ago the come person earns much more today translating to larger disposable incomes. This has leading to more people being able to afford second cars and so being insured on them giving more business to insurance companies (Speedy, 2004).TechnologyIn new era, technology is an one of the important things utilise by social such as internet, communication technology and so on. With this technology, Allianz muckle increase the sales and reduce the tra nsaction costs. By instruction internet, it can changes the delivery service process. Nowadays, Allianz using internet even treats insurance policies. Internet proving to be one of the widely used distribution networks for merchandising insurance policies. Also internet is used for sending premium notices to constitution holders through e-mails (Shinde, et al., 2008)By using internet, it can provide several genial such as premium calculator which accurately displays the amount of premium month wise and the remaining balance. One just has to enter the age, cite of the insurance policy, the sum assured and whether there is an accident cover or not. By the insurance system, the user all by keying the information, this entire them to shown the premium amount within in short time. This has sufficeed the customer in a way so that they dont have to travel all the way to the subdivision to ascertain the amount of premium to be paid (Shinde, et al., 2008)The international good will Allianz operate almost in every continent. The regions are Eastern Europe, fundamental Eastern Europe, Asia Pacific, Americas and Middle East Africa. Allianz is deeply rooted in their home(prenominal) market which is Western, Northern Southern Europe. Western Europe is the home of Allianz. (Allianz, 2010)When Allianz wants doing an international business, Allianz will consider the homophile resource, financial and legal requirement into incident country. Allianz start a new venture in China, financial will incurred in that China will lower than having a new venture in Europe. Furthermore Allianz can get a large human resource in China. This is because the population in China is very large. Allianz also can save cost. The wage pay to the labor is lower and produced the doing in a lower cost (Allianz, 2010).When a company represent to going international, they will consider the macroeconomic that will affect in their business. Before enter to a new country or new venture. The y will do a research about the external environment of that country or region early and then only shape whether to start the new venture into that country or not. While Allianz also does the something. The macro environment that consider to the company are political or legal condition, economic condition, social issue environment and technology. Those are important to evaluate a country before doing an international business (Allianz, 2010). on that point are several methods of going international when a company intends to go international. The company can go international based on merchandise based, non-equity based and equity based. For Allianz which a company just provide services, it use equity based method to going international which include articulate ventures and foreign direct investment (FDI). The first company or function that Allianz venture in is in London with open a infantryman company (Allianz, 2010).Allianz was venturing into Malaysia in year 2001. It become controlling shareholder of Allianz General Insurance Malaysia Berhad(AGIM). However, AGIM was transferred wholly owned subsidiary AGIC in year 2007. Following the completion of the transfer of general insurance business, AGIM changed its observe to AMB and became an investment holding company (Allianz, 2010).Besides that, there have several issue approach by Allianz in Malaysia. Currently, Allianz facing managing humour change risk. Managing mode change risk is the biggest challenge to the Allianz facing today with several impacts on insurance industry. Over past 30years, there was a great natural catastrophes claim by the victims which increase 15fold to approx. 30 one thousand thousand Euros (approximately RM120 billion). Allianz settles 40% of industrial insurance claims are due to natural catastrophes (Allianz, 2010)With managing climate change risks, Loeffler (2010) was recognize climate changes as a matter of great strategic consequence for Allianz. Allianz sine qua non to assess together with their clients by mitigate the risks. In the other hand, Allianz was adapting the impact of climate change and safeguard insurability of risk in future. In year 2007, Allianz was established a subsidiary as Allianz Climate with explicit aim to develop new products and investment trends related to climate change.As a insurance business, Allianz regard to act an early warning system to help the business and let the society get it on and understanding about the new risks. Allianz consider to prepare in several ways for effects of climate change. Providing risk coverage for emerging technologies for example plays an important role in their future development. Securing the insurability of risks is essential for economies to be able to operate (Loeffler, 2010)The growth of businessIn year 1957, the Ansoff Matrix was first published in the Harvard business organization Review and has given a quick and simple way of opinion about growth to generations of marketer s and business leaders and helps them to assess and understand business development or marketing system (Manktelow, 2010). Ansoffs product-market matrix explain that a business attempts to grow depend on whether it markets new or brisk products in new or existing markets.Market penetrationMarket penetration is a growth schema where the business focuses on selling more of the same products or services in current markets. This strategy normally try to fix or increase the revenue of current products and achieve economies of scale through more efficient distribution more efficient manufacturing, and more purchasing power (QuickMBA, 2010). Take for instance Allianz can use advertising to promote their product or policies. Advertising is an important tool to help the company to build up the brand name. In fact, consumer will compare the products through advertising. An innovative and creative advertising is able to form a well image in the mind of the public in order to stimulate more consumers to buy the products. Besides that, Allianz can implementation other special furnish promotions like Allianz can offer a variety of free health checks in different public place such as hospital, shopping complex or any fair related to well. Through the event, the consumers were given an opportunity to purchases health product at a promotion rate. (Anon, 2010)Product developmentProduct development is the name given to a growth strategy where a business aims to sell new products or services in current markets. This strategy often try to develop and innovation new product and sell to existing customers (QuickMBA, 2010). For example, Allianz can provide more comprehensive coverage in addition to the existing insurance plans. kindred Allianz can give shelter among other, medical expenses including dengue, malaria, bungee jumping, amateur sports, natural disasters, kidnappings and thefts. Because these events were became more serious in Malaysia (Allianz, 2010). Besides that , Allianz can packaging existing products it in new ways. Like when husbands buy a personal healthy policy, Allianz will offer a new package that their wife are also can get the free protection from Allianz. It is means buy an insurance policy but the beneficiary is to two persons.DiversificationDiversification is the growth strategy where a company promoted new products or services in new markets. This is the most dangerous type of strategy because the business is entering into markets in which it has little or no experience. For a business to use diversification strategy, therefore, it moldiness have a clear concept about what it expects to obtain from the strategy and an honest assessment of the risks (QuickMBA, 2010). For example, Allianz can try to launch the pets insurance policies. Nowadays, many people feel that raising children is not easy, so they prefer to concentrate on on their pets. According to internet firms found that over 90% people look pets as their own children . Many people going and acting crazy in love with dogs and cats (Plano, 2007). They will provide a loving, safe, healthy home for their pets by providing assisted living, hospice, and placement assistance. Since so many people regard their pets as children, they will want to help their pets to buy an insurance policy and protect their pets. So Allianz can be a first company to implementation this new and creative insurance plan.New ventureVietnam which is located in Asia Pacific is the best investment country. Despite the 1997 Asiatic economic crisis, Vietnams economy has expanded rapidly since the year 1980s commie Party of Vietnam leaved from the communist economic policies. According to the Economist light Unit (2010), Vietnams GDP growth forecast is predicted to be strong, at an median(a) of 7.9% between 2007 and 2010. Besides that, foreign direct investment in Vietnam rise 10 percent to between $10 billion and $11 billion in 2010. Foreign Direct Investment plays an importan t role in the Vietnam economy (Lan, 2010). Know and predominate the necessary have in Vietnam market in this few years, VIPC Capital Management Corporation provide many services such as Non risk investment , Asset steering, Portfolio Management which can give more choices for the customer to choose the financial services and financial consultant to increase the effectiveness in fund management and generating profit. With these facilities and benefits, Allianz can use foreign direct investment method to enter Vietnam market.Threat of new entrantsAllianz should make investigation on what benefits it will get by investing in Vietnam and build a strong customer royalty and make agreement with the organization if viable to prevent possible entrants of contender. As a new entrant, Allianz should build the good brand name to the customers in Vietnam by advertising such as TV advertisement, road side banner and so on. By advertise about the company to citizen in Vietnam to let them go to bed about this company well. However, Allianz need to know the Vietnam citizen culture such as what they like or dislike. Besides the citizen, government rules and regulation need to learn by Allianz to enter into new market such as labor law. It is very important for Allianz to learn the government rule and regulation because some of the things have banned by the government in Vietnam. In other words, it is to make it harder for potential entrants to go in by imposing barriers to new entry.Competitive rivalryThis is important for Allianz to know how rivalry in the market of Vietnam as rivalry among competing firms intensifies, causing industry profits decline and can make the industry becomes inherently un dragive. Since Vietnam less of international insurance company, Allianz can take advantage to enter the Vietnam market to gain more profit from the citizen. With brand equity of Alliance, the customer will prefer more for the international company. Besides that, there have on ly few multinational insurance company in Vietnam but Allianz need to know how strong the brand entity of the competitors are, and also to find out the weaknesses of competitor in order to get affiliate from the domestic consumers in Vietnam. However, Allianz need continuously innovative about the company to competitive with the competitor in Vietnam to gain more profit for it.Bargaining power of buyersBuyers purchases represent a major portion of income for Allianzs total sales revenue, so Allianz must ask how strong the bargaining power of the buyers of the host country as most of the buyers have the absolute information regarding the expense and the availability for the services. Recent year, Vietnam economic has resilient. Vietnams average income per capita has reached an estimated USD 1,200 in 2010 and the country has moved from the list of poorest countries to the list of low and middle-income countries (Vietnam Business Economy News, 2010). Most of the citizens have extra money to buy insurance for their own and their family. Allianz can offer with different types of policy to the customers such in different age of stage and so on. It will attract more customers to choose what type of policy they like due to increase the profit to the company. In the other hand, Allianz should offer a special price to the customers compare to the other competitors to attract for the customers switch to the Allianz insurance. After the buyers purchase the insurance, Allianz need to make good relationship with the customers to maintains the sales because buyers will make income for company profits.