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  • Essay / Insurance Companies: Allstate - 1573

    IntroductionAllstate needs to consider a loss control strategy due to the unforeseen impact that can affect its financial results. Understanding the most common and costly claims, such as wind, burglary, fire, water and physical damage, can direct Allstate toward a more streamlined approach to handling certain controllable claims, which will reduce claims and will increase profits (Allstate.com, 2011). This mission will further provide alternatives that can be used as a strategy so that Allstate can achieve additional growth that complements its strategic vision of reinventing protection and retirement for consumers. Additionally, clearly explain why differentiation is the best generic strategy, customer intimacy is the best value discipline, and market development is the best overall strategy. Keep in mind that the selected strategies are more in line with Allstate's and better because they present additional opportunities that Allstate can explore to drive growth and their ratings. Generic Strategy To begin with, Allstate is a profit-driven organization. Subsequently, being classified as an exclusive low cost leader within the framework of the generic strategy is not accurate. However, differentiation is a better strategy for Allstate. The reason is that differentiation is more tailored to attract specific customers who want an exclusive product or who feel like their product is superior. Allstate has a unique marketing strategy that makes customers feel like their services are so different and unique, which builds customer loyalty; in addition, customers feel safe. This distinction is achievable with a strong workforce that represents the company's value and communicates it effectively with its customers (QuickMBA.com). Most importantly, this... middle of paper ....... In addition to personal presentations made as part of Allstate's corporate social responsibility efforts, virtual demonstrations can be created to provide a more impactful experience. Stimulus activities can provide a more advanced learning experience. Allstate can partner with museums and specialty exhibits around the world to create attractions that involve learning about car, fire, and home safety and more. In fact, Allstate can launch a security mobile that goes to different schools, colleges, daycares and universities. Even more innovative, it is about creating stimulation for students studying quality control, science, engineering, etc. These students can gain knowledge in their field of study on topics that affect the insurance industry. Simply, this concept imitates the virtual organizations proposed by the University of Phoenix..