Case: CUP Corporation, 11-3
Internal Environmental Analysis:
- CUP Corporation, one of the largest insurance firms in Europe. - They have experienced 25 per cent growth each year, for the past 10 years. - Their growth has been due to a series of acquisitions, that have broadened the types of insurance they can sell, as well as fuelling internal growth. - They currently sell insurance in the health, life, casualty, property, and automotive areas. - They are known by two brand names: CUP and Southern.
Mr. Kirk, CEO
Derrick Westmuller, Project Manager for the Customer Care Centre (CCC) within CUP
External Environmental/Industry Analysis:
1.The Intensity of Rivalry Among Existing Competitors- There are several factors that have impacted the insurance industry in Europe. Most significantly is the fact that the industry has been deregulated in Europe, which has greatly increased the number of competitors. Competition is high for CUP Corporation.
2. Bargaining power of customers – With increased competition, and low costs to enter this industry, there would be many opportunities for customers to shop around to find the best product and pricing on insurance products. High bargaining power for customers exists in this industry.
3. Bargaining power of suppliers- omit
4. Threat from substitutes – Customer service is not healthy at CUP, in fact, it has been analyzed and is one of the biggest contributing factors to their stagnant growth. Customers have some loyalty to the company, but when they have dissatisfaction with the customer service they receive, it has been found that they readily cancel their policies. The threat from substitutes could be concluded to be high but it is also due to the fact that CUP cannot keep its’ customers happy.
5. Threat of new entrants – Due to the deregulation of the insurance industry in Europe their is a high threat for new entrants in the...
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