Strategy Formulation Paper Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies

Strategy Formulation Paper Case Solution

Strategy formulation paper

Introduction

The Commonwealth bank of Australia is a multinational company of Australia working over a vast range of segments including the financial service, insurance services (including the life and general insurance), advisory services, mutual funds and other relative financial services. The company is also known as Commonwealth bank or CBA. However, the specific insurance segment of this bank is known as Comm Insure life insurance.

Moreover, this particular segment has its own importance for the company since, this particular segment has also a variety products and brands which makes it different from a lot of insurance providers in the region. Furthermore, at a broader level the company has a large range of brands which are operating in many regions such as Asia, United Kingdom, Australia, Fiji and New Zealand.

These brands include Colonial First State Investment, Bankwest, ASB bank, Commonwealth securities limited. However, the company is the largest company which is listed on the securities commission of Australia. The company was founded in 1911 by the Australian government, and today the company is one of the big four and keeps this ranking with it among the Australian banks. The company first issued its share to general public in 1991 and it was fully privatized in 1996. (CommBank, 2016)

The strategies which the insurance segment is following will be discussed in the next section as well as a choice among the current and proposed strategy will also be made in the next section. However, some conceptual frameworks like Porter’s five forces, PESTLE analysis, SWOT analysis and VRINE will also be applied in the paper later on.

Insurance Industry of Australia

Australian insurance industry can be primarily divided into three main segments

Life Insurance
General Insurance
Health Insurance

There may be further categories among under the above criterions but the main categories are mentioned above. Furthermore, there are many insurers which are focusing towards one or two segments and providing a huge variety in their category.

In addition, these insurers have also diversified into more segments relatively or uncreatively to strengthen and broaden their product line as well as their services. However, majority of these insurers have diversified towards financial services and facing competition with banks and other conglomerates.

The basic purpose or target market of these insurance can be classified as they are looking for those individuals who either have any disability or those people who are seeking for property, wealth and health protection.

Target Market and value proposition of CommInsure

As far as the target market of the company is concerned, the target market of the company is middle and upper middle class. The company is focusing to target the middle and upper middles segment of the market, which is why the company is following the Best Cost Strategy.

Porter’s Five Forces for Insurance Industry of Australia

In this section, the insurance industry of Australia will be analyzed through the most competitive strategic tool useful to analyze any industry known as the Porter’s five Forces. This framework will allow us to understand the dynamics of the industry and to understand the nature of businesses which are being operated in the industry. The five forces which we will use include (Mindtools, 2016)

Threat of New Entrant
Rivalry among the Industry members
Bargaining Power of Supplier
Bargaining power of Buyer
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