Allstate insurance corporation case analysis 37

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ALLSTATE INSURANCE CORPORATION CASE ANALYSIS 37 agencies and sales professionals become an important driver of overcoming the effects of world economic crisis on the company’s revenues. Due to this strength, company currently operates nationwide, in every state. If the company decides to implement innovative changes, existing distribution channels will give it an opportunity to rapidly implement them and collect the customers’ feedback from a wide sample of customers and sales professionals. Maintaining a network with 10,000 agencies is also an important advantage from the perspective of marketing research. While comparing results of sales in different agencies and different groups of products and services, it is easy for marketers to evaluate the current situation in the market and to forecast further changes. Developed distribution channels with such many agencies might be an effective mechanism of testing some new products or services, testing new price policies, specific local marketing campaigns or some other changes which are currently considered by leadership for strategic implementation across the entire country. So, developed distribution channels provide the corporation with stable profits and an ability to rapidly implement new technologies, products and test new innovations in a controlled setting. Willingness to effect organizational change. It is important to understand that the leadership of Allstate Insurance Corporation use key performance indicators to identify organizational performance trends. As a result, the leadership is able to either exploit positive trends or develop corrective courses of action to remedy negative performance trends. In either situation, the leadership has to be the champion of the changes required in order to continuously improve. An example of the wiliness to change is evidenced by the recent focus on the internet as a route to market. The difficulties inherent to insuring valuable items via the internet without verifying the value of the item is a problem that Allstate Insurance Company has struggled with.
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ALLSTATE INSURANCE CORPORATION CASE ANALYSIS 38 Consequently, the problems with the internet sales channel have caused the organization to respond slowly to the trend of using the internet as a primary route to market in the insurance industry. Slow implementation of modern technologies and insufficient development of the internet route to market is a topical problem of the Allstate Insurance Corporation. However, the available evidence provides a ground to claim that managers of the company recognize this problem and are ready to accelerate the rates of adopting new technologies and exploiting the interest as a medium to reach the market. To facilitate the implementation of the change to a more internet based business model, Allstate has hired Matt Curry, who was previously a vice president at PayPal to be its Director of Platform Engineering (Bloom, 2015). This recruitment of
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