Allianz (B): Integrating an Insurer and a Bank SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Strategy & Execution
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Allianz (B): Integrating an Insurer and a Bank
This case is accompanied by a Video Short that can be shown in class or included in a digital coursepack. Instructors should consider the timing of making the video available to students, as it may reveal key case details.Supplements the (A) case. A rewritten version of an earlier case.
Authors :: Joseph L. Bower, Anders Sjoman, Sonja Ellingson Hout, Marc L. Bertoneche
Swot Analysis of "Allianz (B): Integrating an Insurer and a Bank" written by Joseph L. Bower, Anders Sjoman, Sonja Ellingson Hout, Marc L. Bertoneche includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Details.supplements Allianz facing as an external strategic factors. Some of the topics covered in Allianz (B): Integrating an Insurer and a Bank case study are - Strategic Management Strategies, Strategic planning, Strategy execution and Strategy & Execution.
Some of the macro environment factors that can be used to understand the Allianz (B): Integrating an Insurer and a Bank casestudy better are - – there is increasing trade war between United States & China, increasing energy prices, wage bills are increasing, central banks are concerned over increasing inflation, customer relationship management is fast transforming because of increasing concerns over data privacy, talent flight as more people leaving formal jobs, competitive advantages are harder to sustain because of technology dispersion,
digital marketing is dominated by two big players Facebook and Google, increasing commodity prices, etc
Introduction to SWOT Analysis of Allianz (B): Integrating an Insurer and a Bank
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Allianz (B): Integrating an Insurer and a Bank case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Details.supplements Allianz, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Details.supplements Allianz operates in.
According to Harvard Business Review, 75% of the managers use SWOT analysis for various purposes such as – evaluating current scenario, strategic planning, new venture feasibility, personal growth goals, new market entry, Go To market strategies, portfolio management and strategic trade-off assessment, organizational restructuring, etc.
SWOT Objectives / Importance of SWOT Analysis and SWOT Matrix
SWOT analysis of Allianz (B): Integrating an Insurer and a Bank can be done for the following purposes –
1. Strategic planning using facts provided in Allianz (B): Integrating an Insurer and a Bank case study
2. Improving business portfolio management of Details.supplements Allianz
3. Assessing feasibility of the new initiative in Strategy & Execution field.
4. Making a Strategy & Execution topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Details.supplements Allianz
Strengths Allianz (B): Integrating an Insurer and a Bank | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Details.supplements Allianz in Allianz (B): Integrating an Insurer and a Bank Harvard Business Review case study are -
Organizational Resilience of Details.supplements Allianz
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Details.supplements Allianz does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Low bargaining power of suppliers
– Suppliers of Details.supplements Allianz in the sector have low bargaining power. Allianz (B): Integrating an Insurer and a Bank has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Details.supplements Allianz to manage not only supply disruptions but also source products at highly competitive prices.
Superior customer experience
– The customer experience strategy of Details.supplements Allianz in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Ability to lead change in Strategy & Execution field
– Details.supplements Allianz is one of the leading players in its industry. Over the years it has not only transformed the business landscape in its segment but also across the whole industry. The ability to lead change has enabled Details.supplements Allianz in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Highly skilled collaborators
– Details.supplements Allianz has highly efficient outsourcing and offshoring strategy. It has resulted in greater operational flexibility and bringing down the costs in highly price sensitive segment. Secondly the value chain collaborators of the firm in Allianz (B): Integrating an Insurer and a Bank HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Training and development
– Details.supplements Allianz has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Allianz (B): Integrating an Insurer and a Bank Harvard Business Review case study by analyzing – employees retention, in-house promotion, loyalty, new venture initiation, lack of conflict, and high level of both employees and customer engagement.
Digital Transformation in Strategy & Execution segment
- digital transformation varies from industry to industry. For Details.supplements Allianz digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Details.supplements Allianz has successfully integrated the four key components of digital transformation – digital integration in processes, digital integration in marketing and customer relationship management, digital integration into the value chain, and using technology to explore new products and market opportunities.
Sustainable margins compare to other players in Strategy & Execution industry
– Allianz (B): Integrating an Insurer and a Bank firm has clearly differentiated products in the market place. This has enabled Details.supplements Allianz to fetch slight price premium compare to the competitors in the Strategy & Execution industry. The sustainable margins have also helped Details.supplements Allianz to invest into research and development (R&D) and innovation.
Learning organization
- Details.supplements Allianz is a learning organization. It has inculcated three key characters of learning organization in its processes and operations – exploration, creativity, and expansiveness. The work place at Details.supplements Allianz is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Allianz (B): Integrating an Insurer and a Bank Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Strong track record of project management
– Details.supplements Allianz is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Diverse revenue streams
– Details.supplements Allianz is present in almost all the verticals within the industry. This has provided firm in Allianz (B): Integrating an Insurer and a Bank case study a diverse revenue stream that has helped it to survive disruptions such as global pandemic in Covid-19, financial disruption of 2008, and supply chain disruption of 2021.
Ability to recruit top talent
– Details.supplements Allianz is one of the leading recruiters in the industry. Managers in the Allianz (B): Integrating an Insurer and a Bank are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Weaknesses Allianz (B): Integrating an Insurer and a Bank | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Allianz (B): Integrating an Insurer and a Bank are -
Slow decision making process
– As mentioned earlier in the report, Details.supplements Allianz has a very deliberative decision making approach. This approach has resulted in prudent decisions, but it has also resulted in missing opportunities in the industry over the last five years. Details.supplements Allianz even though has strong showing on digital transformation primary two stages, it has struggled to capitalize the power of digital transformation in marketing efforts and new venture efforts.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Allianz (B): Integrating an Insurer and a Bank, is just above the industry average. Details.supplements Allianz needs to redesign the compensation structure and incentives to increase the revenue per employees. Some of the steps that it can take are – hiring more specialists on project basis, etc.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Allianz (B): Integrating an Insurer and a Bank, it seems that the employees of Details.supplements Allianz don’t have comprehensive understanding of the firm’s strategy. This is reflected in number of promotional campaigns over the last few years that had mixed messaging and competing priorities. Some of the strategic activities and services promoted in the promotional campaigns were not consistent with the organization’s strategy.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Allianz (B): Integrating an Insurer and a Bank HBR case study still accounts for major business revenue. This dependence on star products in has resulted into insufficient focus on developing new products, even though Details.supplements Allianz has relatively successful track record of launching new products.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Allianz (B): Integrating an Insurer and a Bank, in the dynamic environment Details.supplements Allianz has struggled to respond to the nimble upstart competition. Details.supplements Allianz has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Need for greater diversity
– Details.supplements Allianz has taken concrete steps on diversity, equity, and inclusion. But the efforts so far has resulted in limited success. It needs to expand the recruitment and selection process to hire more people from the minorities and underprivileged background.
Lack of clear differentiation of Details.supplements Allianz products
– To increase the profitability and margins on the products, Details.supplements Allianz needs to provide more differentiated products than what it is currently offering in the marketplace.
Slow to strategic competitive environment developments
– As Allianz (B): Integrating an Insurer and a Bank HBR case study mentions - Details.supplements Allianz takes time to assess the upcoming competitions. This has led to missing out on atleast 2-3 big opportunities in the industry in last five years.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Details.supplements Allianz is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Allianz (B): Integrating an Insurer and a Bank can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
High cash cycle compare to competitors
Details.supplements Allianz has a high cash cycle compare to other players in the industry. It needs to shorten the cash cycle by 12% to be more competitive in the marketplace, reduce inventory costs, and be more profitable.
No frontier risks strategy
– After analyzing the HBR case study Allianz (B): Integrating an Insurer and a Bank, it seems that company is thinking about the frontier risks that can impact Strategy & Execution strategy. But it has very little resources allocation to manage the risks emerging from events such as natural disasters, climate change, melting of permafrost, tacking the rise of artificial intelligence, opportunities and threats emerging from commercialization of space etc.
Opportunities Allianz (B): Integrating an Insurer and a Bank | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities highlighted in the Harvard Business Review case study Allianz (B): Integrating an Insurer and a Bank are -
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Details.supplements Allianz can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Loyalty marketing
– Details.supplements Allianz has focused on building a highly responsive customer relationship management platform. This platform is built on in-house data and driven by analytics and artificial intelligence. The customer analytics can help the organization to fine tune its loyalty marketing efforts, increase the wallet share of the organization, reduce wastage on mainstream advertising spending, build better pricing strategies using personalization, etc.
Changes in consumer behavior post Covid-19
– Consumer behavior has changed in the Strategy & Execution industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Details.supplements Allianz can take advantage of these changes in consumer behavior to build a far more efficient business model. For example consumer regular ordering of products can reduce both last mile delivery costs and market penetration costs. Details.supplements Allianz can further use this consumer data to build better customer loyalty, provide better products and service collection, and improve the value proposition in inflationary times.
Learning at scale
– Online learning technologies has now opened space for Details.supplements Allianz to conduct training and development for its employees across the world. This will result in not only reducing the cost of training but also help employees in different part of the world to integrate with the headquarter work culture, ethos, and standards.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Details.supplements Allianz can build a diversified supply chain model across various countries in - South East Asia, India, and other parts of the world. This reconfiguration of global supply chain can help, as suggested in case study, Allianz (B): Integrating an Insurer and a Bank, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Details.supplements Allianz can use these opportunities to build new business models that can help the communities that Details.supplements Allianz operates in. Secondly it can use opportunities from government spending in Strategy & Execution sector.
Reconfiguring business model
– The expansion of digital payment system, the bringing down of international transactions costs using Bitcoin and other blockchain based currencies, etc can help Details.supplements Allianz to reconfigure its entire business model. For example it can used blockchain based technologies to reduce piracy of its products in the big markets such as China. Secondly it can use the popularity of e-commerce in various developing markets to build a Direct to Customer business model rather than the current Channel Heavy distribution network.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Details.supplements Allianz in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Strategy & Execution segment, and it will provide faster access to the consumers.
Identify volunteer opportunities
– Covid-19 has impacted working population in two ways – it has led to people soul searching about their professional choices, resulting in mass resignation. Secondly it has encouraged people to do things that they are passionate about. This has opened opportunities for businesses to build volunteer oriented socially driven projects. Details.supplements Allianz can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Using analytics as competitive advantage
– Details.supplements Allianz has spent a significant amount of money and effort to integrate analytics and machine learning into its operations in the sector. This continuous investment in analytics has enabled, as illustrated in the Harvard case study Allianz (B): Integrating an Insurer and a Bank - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Details.supplements Allianz to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Better consumer reach
– The expansion of the 5G network will help Details.supplements Allianz to increase its market reach. Details.supplements Allianz will be able to reach out to new customers. Secondly 5G will also provide technology framework to build new tools and products that can help more immersive consumer experience and faster consumer journey.
Developing new processes and practices
– Details.supplements Allianz can develop new processes and procedures in Strategy & Execution industry using technology such as automation using artificial intelligence, real time transportation and products tracking, 3D modeling for concept development and new products pilot testing etc.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Strategy & Execution industry, but it has also influenced the consumer preferences. Details.supplements Allianz can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Threats Allianz (B): Integrating an Insurer and a Bank External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Allianz (B): Integrating an Insurer and a Bank are -
Instability in the European markets
– European Union markets are facing three big challenges post Covid – expanded balance sheets, Brexit related business disruption, and aggressive Russia looking to distract the existing security mechanism. Details.supplements Allianz will face different problems in different parts of Europe. For example it will face inflationary pressures in UK, France, and Germany, balance sheet expansion and demand challenges in Southern European countries, and geopolitical instability in the Eastern Europe.
Backlash against dominant players
– US Congress and other legislative arms of the government are getting tough on big business especially technology companies. The digital arm of Details.supplements Allianz business can come under increasing regulations regarding data privacy, data security, etc.
Capital market disruption
– During the Covid-19, Dow Jones has touched record high. The valuations of a number of companies are way beyond their existing business model potential. This can lead to capital market correction which can put a number of suppliers, collaborators, value chain partners in great financial difficulty. It will directly impact the business of Details.supplements Allianz.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Details.supplements Allianz can face downward pressure on margins from increasing competition from international players. The international players have stable revenue in their home market and can use those resources to penetrate prominent markets illustrated in HBR case study Allianz (B): Integrating an Insurer and a Bank .
Technology acceleration in Forth Industrial Revolution
– Details.supplements Allianz has witnessed rapid integration of technology during Covid-19 in the Strategy & Execution industry. As one of the leading players in the industry, Details.supplements Allianz needs to keep up with the evolution of technology in the Strategy & Execution sector. According to Mckinsey study top managers believe that the adoption of technology in operations, communications is 20-25 times faster than what they planned in the beginning of 2019.
High dependence on third party suppliers
– Details.supplements Allianz high dependence on third party suppliers can disrupt its processes and delivery mechanism. For example -the current troubles of car makers because of chip shortage is because the chip companies started producing chips for electronic companies rather than car manufacturers.
Shortening product life cycle
– it is one of the major threat that Details.supplements Allianz is facing in Strategy & Execution sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
High level of anxiety and lack of motivation
– the Great Resignation in United States is the sign of broader dissatisfaction among the workforce in United States. Details.supplements Allianz needs to understand the core reasons impacting the Strategy & Execution industry. This will help it in building a better workplace.
Aging population
– As the populations of most advanced economies are aging, it will lead to high social security costs, higher savings among population, and lower demand for goods and services in the economy. The household savings in US, France, UK, Germany, and Japan are growing faster than predicted because of uncertainty caused by pandemic.
Consumer confidence and its impact on Details.supplements Allianz demand
– There is a high probability of declining consumer confidence, given – high inflammation rate, rise of gig economy, lower job stability, increasing cost of living, higher interest rates, and aging demography. All the factors contribute to people saving higher rate of their income, resulting in lower consumer demand in the industry and other sectors.
New competition
– After the dotcom bust of 2001, financial crisis of 2008-09, the business formation in US economy had declined. But in 2020 alone, there are more than 1.5 million new business applications in United States. This can lead to greater competition for Details.supplements Allianz in the Strategy & Execution sector and impact the bottomline of the organization.
Regulatory challenges
– Details.supplements Allianz needs to prepare for regulatory challenges as consumer protection groups and other pressure groups are vigorously advocating for more regulations on big business - to reduce inequality, to create a level playing field, to product data privacy and consumer privacy, to reduce the influence of big money on democratic institutions, etc. This can lead to significant changes in the Strategy & Execution industry regulations.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Allianz (B): Integrating an Insurer and a Bank, Details.supplements Allianz may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Strategy & Execution .
Weighted SWOT Analysis of Allianz (B): Integrating an Insurer and a Bank Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers in the HBR case study Allianz (B): Integrating an Insurer and a Bank needs to zero down on the relative importance of each factor mentioned in the Strengths, Weakness, Opportunities, and Threats quadrants.
We can provide the relative importance to each factor by assigning relative weights. Weighted SWOT analysis process is a three stage process –
First stage for doing weighted SWOT analysis of the case study Allianz (B): Integrating an Insurer and a Bank is to rank the strengths and weaknesses of the organization. This will help you to assess the most important strengths and weaknesses of the firm and which one of the strengths and weaknesses mentioned in the initial lists are marginal and can be left out.
Second stage for conducting weighted SWOT analysis of the Harvard case study Allianz (B): Integrating an Insurer and a Bank is to give probabilities to the external strategic factors thus better understanding the opportunities and threats arising out of macro environment changes and developments.
Third stage of constructing weighted SWOT analysis of Allianz (B): Integrating an Insurer and a Bank is to provide strategic recommendations includes – joining likelihood of external strategic factors such as opportunities and threats to the internal strategic factors – strengths and weaknesses. You should start with external factors as they will provide the direction of the overall industry. Secondly by joining probabilities with internal strategic factors can help the company not only strategic fit but also the most probably strategic trade-off that Details.supplements Allianz needs to make to build a sustainable competitive advantage.
