| Liao Cheng Branch is a branch of the People’s Insurance Company of China which mainly engaged in Liao Cheng City and it’s mainly business fields are property insurance, motor vehicle insurance, liability insurance. In recent years, Liao Cheng Branch has done business very well with a high-speed and pulled it’s premium income up to350M RMB. However Liao Cheng Branch is facing many challenges due to gradually intensified competition in the market. At present, Liao Cheng Branch is analyzing, demonstrating and designing a suitable competitive strategy, therefore it is in a crucial period of strategic transition.The outside chances for Liao Cheng Branch are as follows:national support for reform and development of the insurance industry, Liao Cheng City’s high economic growth, exuberant demands, the increase of insurance consciousness, the abundant and mature technology in insurance, a weaker threat of substitutes, win-win cooperation in main competitors; on the other hand Liao Cheng Branch is facing many threats such as a stronger bargaining power from the suppliers and the buyers, the entering of potential competitors and the existing price war.The internal advantages of Liao Cheng Branch mainly include stronger product development ability, solid direct selling ability, leading mode of both underwriting and claims, centralized management from the Province Branch, leadership excellence, and system perfection. While the internal inferiorities of Liao Cheng Branch are mainly as follows:the unsuitable organizational structure, backward management of the personal agents, facultative channel maintenance ability, backward human resources management, worse IT ability and customer service capability etc.By comparing analysis this paper concludes that differentiation strategy is an inevitable choice of competition strategy for Liao Cheng Branch. Liao Cheng Branch should implement differentiation strategy in the following aspects:to develop different products that fits customer’s needs; to implement different marketing management; to provide different underwriting and claims services. At the same time Liao Cheng Branch should do the following works to make sure the efficient implement: to improve operation foundation by establishing differentiation strategy concept, innovating the organization structure and building the execution system; to strengthen human recourses management by staff training, perfecting the assessment and incentive system and improving staff structure; to enhance customer service level by constructing customer service standard, implementing customer resource management and complaints management; to enhance the support to differentiation strategy from IT by IT outsourcing and internal control centralization; to make strict control system of strategy implementation.This paper not only contributes to the construction of core competitiveness of Liao Cheng Branch so that it could gain competitive advantages in fierce competition but also give some suggestions to other branches of the People’s Insurance Company of China. |
