FORMULATION OF STRATEGY FOR COMPETITIVENESS IMPROVEMENT OF GENERAL INSURANCE COMPANY IN INDONESIA

Abstract

The decline in underwriting income and economic instability during the COVID-19 pandemic prompted companies to decide on the right strategy to survive and continue growing and having a competitive advantage in the general insurance industry. This study aims to identify the external and internal environment; formulate alternative strategies as well; determine priority strategies and managerial implications in increasing competitiveness at PT XYZ. The analytical techniques used in this research are foresight analysis, Porter's Five Forces analysis, PEST analysis, internal analysis, VRIO analysis, EFE and IFE analysis, IE Matrix (Internal External), and Quantitative Strategic Planning Matrix (QSPM). The company's position is in cell V, namely hold and maintain conditions, with the recommended strategy is market penetration and product development. Alternative strategies can develop (1) increasing promotion; (2) expanding product distribution channels; (3) developing existing products; (4) adding features on the mobile application in retail business units. The corporate business unit can (1) improve HR training, (2) recruit employees, and (3) develop new products according to consumer needs. The priority strategy for PT XYZ is increasing promotion in retail business and developing new products in corporate business units.

Keywords

• competitiveness
• covid-19
• foresight
• general insurance
• porter five forces
• strategy