LifeInsurance Corporation of India
LifeInsurance Corporation of India (LIC) management found it important tostrengthen their insurance policy following increased competition inthe insurance sector. It was due to increased number of competitors,including Prudential Life and HDFC Standard Life who had got into themarket with new innovative products. The company was losingcompetitive advantage in the market due to lack of innovativeproducts in the insurance industry. The operation of the company wasrunning out time with the dynamism in the insurance company. Theintroduction of new products emergence in the market and changesoccurring in the global market had to cause the company to change itsoperation and products.
Competitionhas emerged into the market following the establishment of innovativeproducts by the two insurance companies in a monopoly market. Thecompany had lacked innovation and gave `plain` policies to theconsumers. The business environment in the insurance has changed andthe need for innovativeness and lack of incentives in the companywould lead to the company losing competitive advantage in the market.According to [ CITATION Fes11 l 1033 ],creativity and innovation is an important strategy that can beapplied in the insurance industry to increase the competitiveadvantage in the market.
LICfaced competition in the market through their competitors introducingtwo strategies on pricing and product innovation design. Suchproducts in the market would be a threat to LIC. The LIC Companyresponded through the launching of a competitive program called`AnmolJeevan`. In addition, the strategy of reaching out the membersof the society in the rural areas had a positive impact on thedevelopment of the company. In fact, it contributed to the growth itexperienced during those years.
Festus, M. E. (2011). Achieving Competitive Advantage in Insurance Industry: The Impact of Marketing Innovation and Creativity . Journal of Emerging Trends in Economics and Management Sciences (JETEMS) , 18-21.