Strategic Analysis of Insurance Markets: Glasgow Caledonian

This report provides a strategic analysis of insurance markets, focusing on the non-life insurance sector. It uses financial and macroeconomic variables to assess market conditions and employs Porter's five forces to evaluate competitive rivalry, buyer and supplier power, and the threat of new entrants and substitutes. A PESTLE analysis is conducted to understand the political, economic, social, technological, legal, and environmental factors affecting the market. The report discusses growth and profit potential, emphasizing the importance of strategic planning and employee motivation for achieving competitive advantage. The analysis aims to provide insights for Aviva Insurance and other organizations to make informed decisions and enhance their performance in the insurance market. Desklib provides access to this report along with a wide array of study resources.

Coursework 1: Strategic Analysis of Insurance
Markets THIS COURSEWORK CONSISTS OF
40% OF OVERALL EXAMINABLE
COMPONENT

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
Insurance sector variables............................................................................................................3
Porter’s five forces.......................................................................................................................3
Analysis of Analytical tool..........................................................................................................4
Summary from analysis...............................................................................................................5
Growth and profit potential for non- life insurance market.........................................................6
CONCLUSION................................................................................................................................6
REFRENCES...................................................................................................................................7

INTRODUCTION
Strategic analysis refers to make plans or strategies which is beneficial for growth and
development of organisation. It is important to identify factors that may affect performance of
company and better plans should be made so that goals can be achieved (Qin, Liu and Tian,
2020). Aviva insurance is a public limited company which was founded in the year 2000. The
report examines, financial and macroeconomic analysis of insurance sector, analytical tool which
help in measuring competitive environment. For earning revenue and growth in insurance sector
and some recommendations which can be applied by company for development of organisation.
MAIN BODY
Insurance sector variables
For insurance sector specific variables which can be used are, financial and
macroeconomics. It is important to analyse market situation so that better plans can be made and
it also helps in gaining competitive advantage. For achieving targets, it is essential to make plans
or strategies better than competitors to earn profit and build good image in minds of customers.
Managers should evaluate performance of employees and make improvements if required so that
plans can be implemented properly and there will be no confusion in future (Gasparian and et.al.,
2018). For growth of organisation, managers have to take decisions which is beneficial for
development of firm.
Porter’s five forces
Porter’s five forces refers to five elements which help in identifying factors which are present in
the market and helps in gaining competitive advantage. According to Porter, there are five forces
which manager should determine so that they can make better plans or strategies than
competitors. It is important to determine these elements so that it will be easy in gaining
competitive advantage and better decisions can be taken (Bruijl, 2018).
Competitive rivalry- According to Porter, competitive rivalry means to identify competition in
the market. It is the responsibility of managers to determine plans or strategies which is used by
competitors so that they can make better plans. This helps in accomplishing goals and objectives
and more revenue can be generated.
Buying power of customers – Next factor is buying power of customers. Before making any
product managers should conduct market survey and identify choice of customers and according

to that plans should be made. This helps in attracting people and more revenue can be generated.
For increasing sales and profit of company it is important to determine buying power of
customers and decide price accordingly (Irfan and et.al., 2019).
Buying power of suppliers- Another factor of Porter is to identify buying power of suppliers.
Sometimes, it happens that there are few suppliers who provide raw material and managers
should maintain good relationship with them so that they supply material on time. When raw
material is supplied properly then production will be done on time. so, for success of company it
is essential to make plans or strategies after analysing suppliers in market.
Threat of new entrants – There is threat for company i.e., new entrants which is coming in the
market. It increases competition in market and it becomes difficult for existing firms. Thye have
to make new plans or strategies so that revenue can be generated and needs of customers can be
satisfied.
Threat of close substitutes goods- Last element which managers should identify is to identify
substitute goods which is available in market. There should be no close substitute goods
available in market because if close substitute is available then competition increases. Managers
of Aviva insurance should determine competition in market and after that they should enter into
market (Öneren, Arar and Yurdakul, 2017).
Analysis of Analytical tool
It is important to apply analytical tool in an organisation so that better plans can be made
and it helps in gaining competitive advantage in market. Analytical tool should be applied by
managers of Aviva insurance so that they can generate more profit and perform better than
others. For analysing non- life insurance market Pestle analysis can be done. This helps in
determining overall position of market and better plans can be made for accomplishing goals and
objectives of firm. There are many competitors in the market and factors which may affect
performance of Aviva company. So, it is the responsibility of managers to make plans or
strategies which is better than others and employees should work efficiently. Pestle analysis
refers to political, economic, social, technological, legal and environmental (Barik and Kumar,
2018). These are some factors which may affect performance of firm and it should be identified
by manager of Aviva company.
Political factor- These factors include, government rules and regulations like, tax policy, trade
restrictions, tariff barriers, and other restrictions on doing business. It is important to identify

these factors so that better plans can be made for growth and development of company. For
accomplishing targets it is essential to make plans so that these factors may not affect
performance of Aviva insurance company. Political factor changes because government policies
and procedures are changing. So, managers should make plans accordingly.
Economic factor – Economic factor includes, interest rate, inflation rate, and other elements to
make good plans or strategies which is beneficial for future growth and development of
organisation. Managers of Aviva insurance company are responsible for identifying economic
factor to protect performance of organisation and to generate more profit.
Social factor – Another element which may affect working of organisation. It includes, different
culture, language and background of people. People are recruited from different places and it is
difficult for managers to make rules and regulations. For analysing market situation it is
important to determine culture. Managers of Aviva insurance company should identify culture in
market and according to that plans should be made.
Technological factor- Technological factor affect working of company because daily there is
change in technology and it is difficult for managers to purchase new machines. For achieving
goals and objectives of company, managers have to implement new machines so that better plans
can be made (Nandonde, 2019). Managers of Aviva insurance company should identify needs of
customers and on the basis of that products should be made.
Legal factor- Legal factor refers to apply rules and regulations so that employees can work
properly and it is beneficial in growth of organization. For accomplishing targets it is important
to apply some laws so that work can be done in systematic way and better decisions can be
taken.
Environmental factor- These factors refer to climate, weather and other elements that affect
working of Aviva insurance company. This helps in identifying market situation and choice of
customers. When managers identify external factors the it becomes easy to make plans and
provide good quality products to customers.
Summary from analysis
For every organization it is important to apply analytical tool so that so that targets of Aviva
insurance company can be achieved. Analytical tool helps in determining market situation and
better plans can be made for growth and development of company. Pestle analysis is being used

because it is the best tool which helps in identifying competitors plans and strategies. This is also
beneficial in achieving goals and better decisions can be taken by managers. Pestle analysis
includes, political, economic, social, technological, legal and environmental factor which affect
performance of company. There are many competitors present in the market and having
experience to attract customers and earn revenue (Kansal and Singhal, 2018). It is the
responsibility of managers to identify plans or strategies applied by competitors and on the basis
of that they should make plans to gain competitive advantage in market. For accomplishing goals
and objectives of Aviva insurance company, pestle analysis is the best tool which helps in
analyzing market situation.
Growth and profit potential for non- life insurance market
There are many organizations which are involved in insurance business and it is difficult to face
challenges. For earning profit managers have to work hard and determine different factors so that
they can gain competitive advantage in market and perform better than competitors. It is
important to focus on making plans or strategies and motivated employees to work efficiently.
For growth of Aviva insurance company managers have to identify points that affect working of
an organization (Tsygichko, 2021). To generate more profit, managers of company should
evaluate performance of employees and make changes as per the requirement. When
performance is evaluated then iit helps in making better plans and good decisions can be taken
by managers. Improvements can be done by managers in plans or strategies so that they can
perform better than others and more revenue can be generated.
CONCLUSION
From the above discussion it can be concluded that, strategic alanysis plays a crucial role in
achieving goals and objectives. Porter's five forces i.e., competitive rivalry, threat of new
entrants, threat of close substitute, buying power of customers and suppliers has been discussed.
Further, analytical tool i.e., Pestle analysis is done to identify market situation has been
described. Further, analysis is being done of analytical tool and it helps in accomplishing goals
and objectives of company.

REFRENCES
Books and Journals
Barik, B. and Kumar, S., 2018. Macro Environment of Indian Life Insurance Business: A
PESTLE Analysis. Bimaquest. 18(3).
Bruijl, G. H. T., 2018. The relevance of Porter's five forces in today's innovative and changing
business environment. Available at SSRN 3192207.
Gasparian, M. S., and et.al., 2018. Strategic analysis of risks when implementing investment
projects. Espacios. 39(27). p.16.
Irfan, M., and et.al., 2019. Competitive assessment of Indian wind power industry: A five forces
model. Journal of Renewable and Sustainable Energy. 11(6). p.063301.
Kansal, J. and Singhal, S., 2018. Development of a competency model for enhancing the
organisational effectiveness in a knowledge-based organisation. International Journal
of Indian Culture and Business Management. 16(3). pp.287-301.
Nandonde, F. A., 2019. A PESTLE analysis of international retailing in the East African
Community. Global Business and Organizational Excellence. 38(4). pp.54-61.
Öneren, M., Arar, T. and Yurdakul, G., 2017. Developing competitive strategies based on SWOT
analysis in Porter’s five forces model by DANP. İşletme Araştırmaları Dergisi. 9(2).
pp.511-528.
Qin, X., Liu, Z. and Tian, L., 2020. The strategic analysis of logistics service sharing in an e-
commerce platform. Omega. 92. p.102153.
Tsygichko, V. N., 2021. April. Forecasting and Assessing the Risk of Negative Consequences of
Strategic Decisions in Organisation Systems. In Computer Science On-line
Conference (pp. 9-22). Springer, Cham.