Among the five forces of competition; existing competitive rivalry between suppliers, threat of new market entrants, bargaining power of buyers, power of suppliers and threat of substitute products, the most significant for UnitedHealth Group are threats for substitute products and rivalry among competing firms. Given the fact that there are numerous healthcare insurance firms in the world; there are also a number of substitutes for the corporation products and services. In recent years, the banking industry has become involved in insurance activities. They provide some medical plans, which act as substitutes to the UnitedHealth Group products. Banc assurance, otherwise known as the bank insurance model, is a very common phenomenon in this global world. Banc assurance is an arrangement in which a bank and an insurance company form a partnership so that the insurance company can sell its products to the bank’s client base. This type of partnership can be profitable for both, the bank and the insurance company. Banks can earn additional revenue by selling the insurance products and insurance companies are
Thus, each bank needs to differentiate their product offers to customer, strengthen their portfolio, and improve services, etc depending on its strategies.
There are various categories of banking; these include retail banking, directly dealing with small businesses and persons. Commercial and Corporate banking which offers services to medium and large businesses (Koch & MacDonald 2010). Private banking, deals with individuals, offering them one on one service. The last category is investment banking. These help clients to raise capital and often invest in financial markets. Most global banking institutions provide all these services combined. With all these institutions in existence within the same localities and offering similar services, there is a need to regulate the industry so as to protect the consumer and provide fair working environment for all banks (Du & Girma, 2011).
c) The influx of liquidity both original Answer: The Glass-Steagall Act of 1933 that defined the roles for commercial banks, investments banks and insurance firms was over ridden by the Gramm-Leach-Bliley Act (1999) which repealed the provisions that restricted affiliations in financial institutions. Hence one solution is to overcome the incentive problem and the conflict of interests that arise when financial institutions simultaneously undertake financial activities of varied nature.
- Outside the U.S. (e.g. Japan), non-financial services companies are permitted within the holding company. In this scenario, each company still looks independent, and has its own customers, etc. In the other style, a bank would simply create its own brokerage division or insurance division and attempt to sell those products to its own existing customers, with incentives for combining all things with one company.
Distribution Strategies A distribution strategy is in relation to how a company will distribute the product or services they are offering to
More and more people before deciding to purchase goods used to check offers via smartphones or tablets. The world 's total number of sales of such devices exceeded the number of desktops. Technological development and high availability of new solutions contributed to the increase in customer expectations to its relations
The Harvard Business School case study Mobile Banking for the Unbanked explores two very different examples of mobile financial service models:
The Future of Banking: The Mobile Banking Revolution Brett Lord Florida Institute of Technology Strategic Management BUS5480 Professor Uchenna Nwabueze March 24, 2013 Abstract Mobile banking changed the landscape of personal banking. As the Internet became more ubiquitous and smartphone and tablet use is increasing, the desire for consumers to conduct their banking on the go grew
PEOPLE: Banking products cannot be separated from the person (banker) who markets them. The product and the seller together constitute the
Some companies have decided to outsource something as small as their mobile bank industry. For some smaller banks in the United Kingdom it seems to be a lot easier to have another company be in charge of their mobile banking so that they focus on core competencies within the organization (Yurcan). In addition to that, with other larger companies who have the resources and money to engage in house control of their own mobile banking IT software, it leaves the smaller businesses with their hands tied. There is no doubt that since 2010 there has been a need for mobile banking, as it is the most efficient and convenient way to bank for customers (Yurcan). Thus, in order
Challenges for Mobile banking services Mobile banking is also popularly known as SMS banking or M-banking. It is the latest development in the banking sector that enables us to conduct banking transactions by using the mobile phone. Mobile phones are no longer a communication device, but can be used for several other
Formal and informal institutions’ lending policies and access to credit by small-scale enterprises in Kenya: An empirical assessment By Rosemary Atieno University of Nairobi AERC Research Paper 111 African Economic Research Consortium, Nairobi November 2001 © 2001, African Economic Research Consortium. Published by: The African Economic Research Consortium P.O. Box 62882 Nairobi, Kenya Printed by: The Regal Press
Changing Technologies The change and advancement in technology are a significant factor in the banking business. Technology has led to tremendous improvements in this industry. Since the commencement of this millennium, people have shown great love for their mobile phones (Ozaki 1992). It necessitated the invention of mobile applications (APPs). From the introduction of the mobile banking, APP people rarely go to the banks. All their transactions get done simply by the stroke of a finger. Businesses face a challenge of adapting to changes in the technology sector. Mobile banking either through actual investing or any other means is on the rise.
4. Research distribution Distribution of the products or services is a vital thing of the sales of the organization. What is the customer want about distribution; how they want get their product or services by research all these things will help to get customers.