Question

Strategy formulation is an important aspect of strategic management .Imagine you have just been appointed as chief Executive Officer for Zambia State Insurance Corporation, and the Board of Directors expect you to formulate a winning strategy for the company that will enable it gain a strong market position given the intensity of completion in the insurance industry. Discuss the key components that you would consider in the development of strategy and clearly show how these apply to ZSIC.

Answer 1

Indeed, strategy formulation is an important aspect of strategic management which becomes further crucial for a company which operates in a competitive sector like insurance sector. Without having a proper robust strategy, no company can win the customers and ensure its success. So as a chief Executive Officer for Zambia State Insurance Corporation, and the Board of Directors, I would employ following strategy to woo the customers and ensure the success of ZSIC in a cut throat competitive Zambian insurance industry.

· Understanding the needs of customers and offering customized insurance policies to them: This is very crucial to understand the needs of customers. I will also offer customized insurance policies to them as per their demographics, lifestyles and behaviours, buyer personas, and associated risks with them. For this purpose data analysis, artificial intelligence and deep learning can be used to analyse data of our customers.

· Offering the top notch customer service: It will be ensured by our end that each and every query of customers are entertained and answered by our staffs in a very polite, easy to understand and respectful manner. This facility will be made available for 24/7. Our staff will also give special offers to customers and will always be in their touch through phone, emails, and social media.

· Building customer loyalty: We will be offering some freebies and special discounts to our randomly selected customers to engage with them and arouse their interest in our company and services and consequently to increase customer loyalty. This is necessary as this will help to spread the positive word-of-mouth marketing which will help to gain more customers and building customer loyalty.

· Data Mining: This is very crucial in today’s era of tough competition. We need to have the right set of data of our existing and potential customers so that we can offer them a customized offer which they cannot resist. So my strategy will also include this component to work upon so that we can monetize this.

· Data privacy of customers: We will not compromise on this front. Not only we will be using the data of our customers in a very ethical manner but also ensure that no third party can get access to our data and misuses them. This is very crucial to build an environment of trust between the customers and ZSIC.

· Training of our staff as per the requisite of the new strategy: I will ask the HR department to impart proper training in our staff so that they can know our strategy in a very delicate manner. It is necessary to convince the customers because without proper knowledge nothing can be explained to anyone.

So these factors will be the key components of my strategy.

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P.S. -

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