TABLE OF CONTENT2
A. BAO MINH COMPANY PROFILE3
B. MACRO-ENVIRONMENT ANALYSIS4
C. MICROENVIRONMENT ANALYSIS8
D. SWOT ANALYSIS11
E. STRATEGIES FOR BAO MINH16
Vietnam's insurance industry is still very new compared to the world. It is of no easy task for local companies to keep pace with international insurance businesses. In the context of economic integration, competition is increasingly intense – it opens up opportunities as well as challenges for Vietnam's insurance companies.
Bao Minh Joint Stock Corporation is one of the leading non-life insurance companies in Viet nam. After nearly 20 years of operation, Bao Minh has well established its position in the Vietnam insurance market. However, with the rising competition from other insurance companies, as well as changing environment conditions, Bao Minh has met with great challenges. In this assignment, macro and micro environment will first be analyzed to see opportunities and threats for Bao Minh. After that, the internal environment will be examined to discover the company’s own strengths and weaknesses. Last but not least, strategies for the company will be the output, based on the SWOT framework.
With strategies proposed, we hope that Bao Minh will further take advantage of its strengths and opportunities to thrive in the insurance market.
A. BAO MINH COMPANY PROFILE
Bao Minh Insurance Corporation, which was formerly known as Ho Chi Minh City branch of the General Insurance Company of Vietnam, was incorporated in November 28th, 1994. From 1994 to 2004, it was a 100% state-owned enterprise under the Ministry of Finance.
Bao Minh Corporation officially went into operation in early 1995, trading in the field of non-life insurance. Initial capital of the company was 40 billion VND with only 84 staff members and revenue reached 158.1 billion VND.
From October 2004 until now, it remains as a joint-stock insurance enterprise with 1,850 staffs and over 4,000 professional agents. Its network encompasses 18 Functional Divisions under the Head Office, 01 Training Center and 59 branches throughout the country.
Bao Minh’s vision is to become a leading joint-stock stock insurance corporation of Vietnam with multi-sectorial operations in the field of financial services with good brand name, high prestige and large market share for insurance business. Safety, happiness and success of both clients and society serve as the aim of their operations. Their motto of operations is “Bao Minh – whole-hearted service”.
Bao Minh’s scope of activities includes non-life insurance, reinsurance and financial investment. Bao Minh also provides consultancy and provision of about 20 groups of insurance commercial products for aviation, maritime, property, liability, casualty and automobile with a nation-wide operation network.
In terms of long-term investment, at present, Bao Minh is in joint venture with Union Insurance Company (UIC) which was set up in 1997 with the total investment of US$5,550,000. Capital is contributed by Bao Minh to a number of joint-stock companies such as Post Insurance Company, Saigon-Kim Lien Hotel, Saigon – Ha Long Hotel, Ninh Chu Hotel, KhanhHoa Passenger Car Company, National Appraisal Company, Ho Chi Minh City Security Company, TayNinh Travel Company with the total fund of VND22,560 billion. Bao Minh also participates in investment of bonds, government bonds, long-term bills.
Bao Minh is the first insurer of Vietnam who has successfully built the quality management system according to ISO 9001:2000 standard. Bao Minh has also made investment to the development...