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.
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 provides the opportunity to up-charge a premium price for the insurance products (Chapter 7, 184).
Allstate’s shared vision is to help their customers realize their hopes and dreams through their products and services, plus reinvent protection (Allstate.com, 2011). In this case, customer Intimacy is more in alignment with their value discipline. Especially since “consumer focus” is their top operating priorities (Allstate.com, 2011). Allstate strives to provide protection products to help their customers for the future. In their services, honesty, integrity, engagement, and superior performance are some of their well-known values. In addition, placing their customers at the center of all of their work is their top business principle. Even more important, Allstate takes an enterprise approach to their processes by working as a single team towards a common goal, rather than an individual interest.
The products and services from Allstate tends to provides customization to fit the needs of their clients (Chapter 7, p. 185). In the event a client has an issue, Allstate works as a team to provide their clients accessibility with one phone call. This can range from a car rental until their damage car is...