Competition Analysis For Ping An Life Insurance Company Of China,LTD.

Life insurance industry has the special characteristics as the following: scaleeconomics influence is strong, the cost for consumer converting is expressive, thecustomer loyalty is higher and it has strength relationship with the number ofpopulation. All of those make the early-mover advantages are more clear in lifeinsurance industry. The Chinese insurance market has broad space to grow,meanwhile it has weak barrier to enter. After China enter WTO, many foreigninsurance companies come into China. There are over 30 life insurance companies inchina now including over 20 foreign companies. The competition becomes more andmore violent. At the beginning, the foreign company did not show any special.While after several years, the power began to show, now the market share owned byforeign competitors in Guangdong province are more than Chinese company. Theforeign companies have core competencies which make they develop sustained.They are having solid capital and advanced management experience after existingfor over hundred years. While, Ping An life Insurance Company have theearly-mover advantages such as more market share and brand famous advantages.So it has chances as will as challenges for Ping An life insurance.Ping An life insurance company has some competitions. It has the followingadvantages: bigger market share, high brand image, management basis and nativepolitical advantage. While all of the above advantages are short if there are nosupporting of core competencies. Because the market share of Ping An is so small ifcontrast to Chinese Insurance Market. If Ping An can not keep the developing speed,it will lose the scale advantage.The core competencies are the basis for a company gets advantage anddevelops sustained. Even though nearly every corporation can make money in aearly market which is developing fast and have large potential profit, it still can bedefeated if it do not make a distinct strategy and cultivate core capacity in fiercecompetition. The successful company always has an accurate market orientation anddevelops core abilities emphasis as well as it try to enlarge its market share. In thatcase, it can enjoy the market profit more and longer.The competencies scores for life insurance are: 1.market share; 2.operationefficiency; 3.capital sufficient; 4.profit; 5.potencial develop ability. According theabove scores, we get the key abilities for life insurance industry, they are: actuaryscience, invest science, consensus & indemnity science, Sales channel, customerservices, brand images, management, innovations. Actuary science decides theproduct design and price; consensus & indemnity science is the import factor forcost; investment is the major source for profit. Sales channel and brand image aremore significant for this invisible product sales. Customer and innovation abilitydecide the company further development. If life insurance company can have severalkey abilities in above and mix them together, it will has the core competencies foritself. Ping An Life Insurance Company has no obvious advantage in all above keyabilities. Now, the core competencies of Ping An is just forming.Ping An life insurance companies are lacked advantages in all above key fieldsjust because: Ping An do not have a systematic and long development strategy plan.In contract, foreign company always an accurate strategy orientation and emphasison developing steadily. They do not run the short time activities, which maydecrease the long capacities. Supporting by science management, they can developcore competencies firmly.The task of top priority for Ping An is to enhance the sales agents channel...