USAA, Geico, The General, Progressive, AARP, and AAA, all provide one particular service that seems to be popular with consumers, namely: auto insurance coverage

They each not only battle for such coverage, but for many other services, as well: roadside service, lockout, OnStar capabilities, towing, etc.

What is noted is that each of these companies caters to a specific niche: USAA to military active duty and retired military members, their adult children and spouses; The General to those who are high-risk drivers, or who have high-performance vehicles; AARP to seniors; Geico to men and women between the ages of 24 and 64; Progressive to consumers between 31 and 45, just getting married, starting a family.

So, in reviewing the tenets of Chapter 5 - the Five Generic Competitive Strategies, it's logical to believe that targeted customers can easily fit into one of these niches to personalize their car insurance coverage and the like. A boom for insurance companies, regardless, if whether they have the right strategy.

Question 1:
Identify and fully describe the five generic competitive strategies that build competitive advantage, and deliver superior value to customers

Question 2:
Choose any one of the companies identified above to then characterize its competitive strategy. Should it be classified as a low-cost provider, differentiation strategy, best cost strategy, etc., and fully explain your assessment

Question 3:
For the company you chose, which cost/value drivers are (were) important in creating superior customer value? Explain.

Question 4:
What action plan would you consider for your chosen company to achieve a sustainable competitive advantage over rival companies

Answer rating: 100% (QA)

Question 1 The Five Generic Competitive Strategies Cost Leadership Strategy Involves becoming the lowestcost producer in the industry Aims to achieve economies of scale cost efficiencies and cost adva... View the full answer