Strategic Analysis -- AXA

Topics: Strategic management, Insurance, Financial services Pages: 21 (3782 words) Published: March 26, 2014
School of management
University of Bradford
Model code: MAN0208M

A Strategic Analysis of AXA
Industries: Insurance/Financial Services

Word Count: 2314 (not including Tables or Executive Summary)

Executive Summary

This report has to do with the investigation into AXA insurance company including internal analysis, external strategic analysis and strategy formulation. It is designed to analyse the whole organisation and make recommendations related to the problems. AXA is a French global investment, retirement and insurance group. The AXA Group involves five operating business segments: Life & Savings, Property & Casualty, International Insurance (including reinsurance), Asset Management and Other Financial Services. This report is focused on AXA insurance.

The main investigation approach is to use the text book as a secondary resource to analyze the specific theory about PESTLE analysis and Porters Five Forces analysis. At the same time, some useful sources as secondary information are researched from the Internet and some professional theory about external and internal analysis and strategy formulation come from library books.

Through the investigation, there are four main parts related, but each part has detailed contents around different topics. The first part will introduce the company summary. PESTLE analysis, industry life cycle, Porters Five Forces analysis and key competitors will be introduced in the second part. After that, the report will show internal analysis including value chain and SWOT analysis. Finally, the part will focus on strategy formulation and making recommendations respectively.

After a full strategic analysis of both the external and internal factors affecting the business, it is clear that there are key drivers in the markets. These drivers are customers' need, differentiated products and quick response to new technology. Consumers are becoming more price sensitive and eager to locate the best deals on the market. These are the areas that the business needs to focus on and develop in the future.

Based on the findings of this report, it is clear that AXA has a dominant position in the market. However there are a few points could be improved, and profits could be potentially increased if the business implemented a number of recommendations. The recommendations are to continue the expansion into international markets, improve and develop its products, develop more complete marketing systems and take new technology into consideration. Carrying out these recommendations would result in having a larger consumer base and an increase in profits.

Key words:
External and Internal Analysis, Strategy Formulation, Recommendations

Contents

Executive Summary
2
1
Company Summary
4
1.1
Company Background
4
1.2
Current Market Position
4
1.3
Current Financials
4
2
External Strategic Analysis
4
2.1
PESTLE Analysis
5
2.1.1
PESTLE Analysis - Conclusion
5
2.2
Industry Growth/Life Cycle
6
2.3
Porters Five Forces Analysis
7
2.3.1
Porters Five Forces Analysis - Conclusion
8
2.4
Key Competitors
9
2.4.1
Pricing Decision
9
3
Internal Analysis
9
3.1
Value Chain Analysis
9
3.1.1
Value Chain Analysis - Conclusion
10
3.2
SWOT Analysis
10
4
Trends
11
5
Strategy Formulation
11
5.1
The BCG growth-share matrix
12
5.2
Corporate strategies
12
6
Conclusions
13
7
Recommendations
13
8
References
14
9
Appendices
16

List of Tables and Figures

Fig.1
Current Financials
4
Fig.2
PESTLE Analysis of AXA
5
Fig.3
The Industry Life Cycle Model
6
Fig.4
Porter's 5 Forces Model
7
Fig.5
Pricing Decision
9
Fig.6
Value Chain Analysis
9
Fig.7
SWOT Analysis
11
Fig.8
The BCG growth-share matrix
11
Fig.9
Statistics about average insurance spend
16
Fig.10
Key Competitors
17
Fig.11
Pricing...

References: AXA. (2013). Annual Report – AXA. Available at:
http://www.axa.com/lib/en/library/anr/group/14183.aspx [Accessed 04/12/2013]
Banks around the world. (2013) Top Insurance Companies. Available at:
http://www.relbanks.com/top-insurance-companies/world [Accessed 07/12/2013]
Beyerlein, M. M., Freedman, S, McGee, C, & Moran, L. (2003) Beyond Teams. San Francisco: Pfeiffer. Ch. 1. p.p.11
Dobbs, M
Duffy, T (2013) Insurance product life cycle management. Available at:
http://faculty.mu.edu.sa/public/uploads/1361811803.1234product%20life%20cycle37.pdf [Accessed 07/12/2013]
Keynote. (2013). Industry News. Available at:
https://www.keynote.co.uk/media-centre/in-the-news/display/consumer-attitudes-towards-direct-insurance-remain-stable%E2%80%A6/?articleId=329 [Accessed 06/12/2013]
Liu, H. (2013). Value chain model and analysis of new energy vehicle. Contemporary Logistics, (10), 110-115. Retrieved from http://search.proquest.com/docview/1449792331?accountid=17193 [Accessed 07/12/2013]
Lynch, R (2006) Corporate Strategy, 4th ed
McPhee, W., & Wheeler, D. (2006). Making the case for the added-value chain. Strategy & Leadership, 34(4), 39-46. doi:http://dx.doi.org/10.1108/10878570610676873
[Accessed 07/12/2013]
MySupermarket. (2013).Insurance. Available at:
https://www.moneysupermarket.com/life-insurance/results/1883133 [Accessed 07/12/2013]
OECD (2012), "Average insurance spending per capita", Insurance and Pensions: Key Tables from OECD, No. 3.
UKESSAYS (2013). Market analysis of the AXA Insurance company. Available at:
http://www.ukessays.com/essays/marketing/market-analysis-of-the-axa-insurance-company-marketing-essay.php [Accessed 06/12/2013]
Yüksel, I. (2012). Developing a multi-criteria decision making model for PESTEL analysis. International Journal of Business and Management, 7(24), 52-66. Retrieved from http://search.proquest.com/docview/1327873432?accountid=17193 [Accessed 06/12/2013]
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