Monday, August 26, 2019

Review of Strategies Undertaken by AIG Essay Example | Topics and Well Written Essays - 1000 words

Review of Strategies Undertaken by AIG - Essay Example American International group which is a financial services company constitutes of different business units. These are AIG Bank, AIG Direct, SunAmerica financial group, Chartis insurance, United Guaranty Corporation and International Lease Finance Corporation. The main revenue of the company is from the Chartis insurance which is major name in the global insurance sector. SunAmerica financial group is the other which generates maximum revenue for the AIG group. From this statistics, it can be said that the company is mainly focusing on the life insurance, general insurance, wealth management, asset management programs. It can also be said statistics that the major percentage of revenue comes from the casualty and specialty line of business. In any type of industry, the companies should design and offer the product or services according to the customer needs. Financial services industry is a volatile industry. During the economic downturn, the companies generally don’t profit mu ch from the financial services. The reputation of the companies plays a big role in that situation. If the financial services companies provide the products according to the needs of the customers and build customer loyalty then they will have a competitive edge than their competitors. For having a good percentage of market shares as well as retaining the customers in the time of financial downturn a loyal customer base is necessary for the financial services company (The Economist, 2008, p.5-7).... During the economic downturn the companies generally don’t profit much from the financial services. The reputation of the companies plays a big role in that situation. If the financial services companies provide the products according to the needs of the customers and build customer loyalty then they will have a competitive edge than their competitors. For having a good percentage of market shares as well as retaining the customers in time of financial downturn a loyal customer base is necessary for the financial services company (The Economist, 2008, p.5-7). The services those are providing by the company should be customized. American General Life and Accident Insurance Company (AGLA), the middle market life insurance and accidental insurance division of SunAmerican financial group provides personal customer service to the small business owners and middle market segment by an effective field force consisting of the full time employees. Chartis is gaining revenue from the per sonal lines; casualty and speciality sector of insurance which means the company is also focused on the personalized services to the customers (American International Group, 2011, p.8). So it can be said that the company is applying the right strategy i.e. they are providing customized and customer oriented services to their customers which in turn make a loyal base of customers for the company. It would be helpful for the company to retain the market share in time of financial downturn. Segmentation strategy is one of the important strategies that should be addressed by the company management properly. American International Group is a large group constitute of many companies. Every company is providing different type of services and their target market is

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