1introduction of HDFC Life Insurance Building A Service Brand Case Solution
1introduction of HDFC Life Insurance Building A Service Brand Case Solution
1introduction of HDFC Life Insurance Building A Service Brand Case Solution
2. PROBLEM IDENTIFICATION
2.1. Harvard business school case studies
All case studies published by the Harvard business review comprise of a central problem that is
faced by the protagonist. This problem mostly holds implications for managerial and strategic
directions of the company. For readers and students of HBR case studies, it is critical to identify
the problem that the HDFC LIFE INSURANCE BUILDING A SERVICE BRAND faces. This
problem is usually hinted towards in the introduction of the case and develops along the way.
2.2. Solving HBS case studies
As a result, for solving the HDFC LIFE INSURANCE BUILDING A SERVICE BRAND case, it is
essential to read the case study thoroughly. The identification of the problem correctly is vital for
undergoing the analysis rightly, and for developing relevant solutions for the HDFC LIFE
INSURANCE BUILDING A SERVICE BRAND Case Study. It is also essential to identify all the
appropriate parties that are being impacted by the problem as well as the decision. The correct
problem identification will ensure that all the solutions developed during the case analysis of the
HDFC LIFE INSURANCE BUILDING A SERVICE BRAND Case Study are applicable and
pragmatic.
3.1.1. Political
Political factors and elements can have a direct and indirect impact on the business. This is seen
through the HDFC LIFE INSURANCE BUILDING A SERVICE BRAND Case Study.
Policymakers for the HDFC LIFE INSURANCE BUILDING A SERVICE BRAND Case are in
all likelihood to intervene in the business surroundings.
Commercial restrictions and political stability are additionally integral factors that will determine
the success or failure of HDFC LIFE INSURANCE BUILDING A SERVICE BRAND.
3.1.1.2. Taxation
Tax policy will influence the cost of doing business for HDFC LIFE INSURANCE BUILDING A
SERVICE BRAND.
An increase in organization taxation (on business profits) has a similar impact as an expansion in
expenses.
Organizations can pass a portion of this increase on to shoppers in more expensive rates, yet it will
likewise influence the bottom line of the business.
The government helps organizations in two primary ways: monetary help and regulatory.
HDFC LIFE INSURANCE BUILDING A SERVICE BRAND can use government assistance and
grants for purposes of growing the business, advancement, exporting, and innovative work.
HDFC LIFE INSURANCE BUILDING A SERVICE BRAND can also be impacted by when
Governments modify regulations and laws.
Lack of political stability in a country impacts business tasks. Political stability is particularly
essential for the organizations which work globally, such as HDFC LIFE INSURANCE BUILDING A
SERVICE BRAND.
A forceful takeover could oust a legislature. The takeover could prompt mobs, plundering and
general issue in nature. These disturb business tasks for HDFC LIFE INSURANCE BUILDING A
SERVICE BRAND.
Purchasing political risk insurance is a way for HDFC LIFE INSURANCE BUILDING A
SERVICE BRAND to oversee political hazard. Organizations that have worldwide activities utilise such
as insurance to lessen their risk presentation.
The soundness of a political framework can influence the attractiveness of a specific nearby
market for HDFC LIFE INSURANCE BUILDING A SERVICE BRAND.
3.1.2. Economic
The economic factors are one of the most important of PESTEL factors and can influence HDFC
LIFE INSURANCE BUILDING A SERVICE BRAND in several ways.
3.1.2.1. GDP
Economic components have the most evident effect on the profitability and overall appeal of
HDFC LIFE INSURANCE BUILDING A SERVICE BRAND.
Even though GDP per capita is a useful economic factor, GDP per capita gives just a fractional
perspective on the economic factors that may influence HDFC LIFE INSURANCE BUILDING A
SERVICE BRAND.
Higher GDP leads to higher disposable income and hence higher sales for HDFC LIFE
INSURANCE BUILDING A SERVICE BRAND.
3.1.2.2. Inflation
Higher inflation will disintegrate the purchasing power of the consumer and the shopper
Higher inflation will also harm the costs of raw materials and other inputs that are utilised by
HDFC LIFE INSURANCE BUILDING A SERVICE BRAND.
Fluctuations in interest rates may translate into higher or lower costs for the purchase or sale of
items and administrations provided by HDFC LIFE INSURANCE BUILDING A SERVICE BRAND.
Higher interest rates hurt the disposable cash of consumers.
HDFC LIFE INSURANCE BUILDING A SERVICE BRAND can work towards building
economies of scale
Maintaining business costs and controlling the final price of the product can also help HDFC LIFE
INSURANCE BUILDING A SERVICE BRAND fight economic instability
HDFC LIFE INSURANCE BUILDING A SERVICE BRAND can also work towards building a
sustainably managed workforce
Social patterns affect work trends and patterns and are directly related to the behaviours of
consumers.
Social patterns also have a direct influence on buyer tastes and inclinations, and the specific kind,
structure, and volume of interest for an item or service.
The checking of social patterns will enable HDFC LIFE INSURANCE BUILDING A SERVICE
BRAND to reposition its items or administrations to meet the changing desires and needs of consumers.
Social trends of higher education have allowed firms like HDFC LIFE INSURANCE BUILDING
A SERVICE BRAND to have access to a pool of higher skilled talent – but at the same time, also face a
more criticising consumer base.
Higher education has also made consumers more aware of different product offerings by
companies like HDFC LIFE INSURANCE BUILDING A SERVICE BRAND.
consumers are also more educated and knowledgeable of different substitutes of a product, as well
as become more readily available at different touch points.
Companies like HDFC LIFE INSURANCE BUILDING A SERVICE BRAND are expected to
become more consumer-centric than product-centric.
Similarly, Market segmentation and consumer grouping are dynamically moving towards
measures of psychographics and lifestyles to understand the consumer more.
3.1.4. Technological
The technological factors can influence HDFC LIFE INSURANCE BUILDING A SERVICE
BRAND in several ways:
3.1.4.1. Innovation
The quick pace of technological change at HDFC LIFE INSURANCE BUILDING A SERVICE
BRAND may be driven through innovation.
Business leadership at HDFC LIFE INSURANCE BUILDING A SERVICE BRAND tries to push
the limits of present limitations.
The expansion of the Internet and online business has discarded many intermediaries. HDFC LIFE
INSURANCE BUILDING A SERVICE BRAND can communicate and retail directly to the consumers
now, or through modern intermediaries such as eBay as well, for example.
HDFC LIFE INSURANCE BUILDING A SERVICE BRAND may also use current social
networks to retail and use e-commerce to boost sales.
HDFC LIFE INSURANCE BUILDING A SERVICE BRAND can make use of social media to
interact and reach with consumers
Social media can also be used to reach the target market audience more effectively
Social media is cost-effective and strategically more influential for HDFC LIFE INSURANCE
BUILDING A SERVICE BRAND
For HDFC LIFE INSURANCE BUILDING A SERVICE BRAND, technological innovation can
be utilised to build on competitive advantage through several different ways.
HDFC LIFE INSURANCE BUILDING A SERVICE BRAND can incorporate less expensive
production, improved access to clients, improved marketing, improvement in product quality, and
increased levels of business intelligence than the competition.
3.1.4.5. Managing technology and the future for HDFC LIFE INSURANCE
BUILDING A SERVICE BRAND
To flourish in a business world that is quick paced and receptive to innovative change, HDFC
LIFE INSURANCE BUILDING A SERVICE BRAND must stay cautious.
It must be always be updated on any technological developments in the business and industry.
HDFC LIFE INSURANCE BUILDING A SERVICE BRAND should weary of how the company
are probably going to influence its future attractiveness and profitability.
3.1.5. Environmental
For HDFC LIFE INSURANCE BUILDING A SERVICE BRAND, the environmental aspects of the
PESTEL analysis may include:
Leadership in the HDFC LIFE INSURANCE BUILDING A SERVICE BRAND must measure
the connection between natural activities and budgetary execution.
HDFC LIFE INSURANCE BUILDING A SERVICE BRAND also strategically decides and
assesses if the organization have been estimating the monetary effect of natural and social activities.
HDFC LIFE INSURANCE BUILDING A SERVICE BRAND may use environmental issues to
adjust financial, natural and social performance.
Concerns towards the environment will enhance the business image for HDFC LIFE
INSURANCE BUILDING A SERVICE BRAND.
Environmental sustainability within business goals and strategy will also reflect corporate
responsibility on the part of HDFC LIFE INSURANCE BUILDING A SERVICE BRAND.
Consumers will be more inclined towards the use of environmentally sustainable products.
Environmental sustainability in operations works towards improving the bottom line and overall
profitability for the business of HDFC LIFE INSURANCE BUILDING A SERVICE BRAND.
Improvement of cost management and operations will be observed in the business as well.
3.1.6. Legal
Legal components can influence HDFC LIFE INSURANCE BUILDING A SERVICE BRAND
directly, and can likewise influence the instruments through which an organization buys its stock
or connects with the client. The HDFC LIFE INSURANCE BUILDING A SERVICE BRAND
should be mindful, for example, of the following legal aspects:
Labour law refers to the guidelines in regulations that set up minimum and benchmark conditions.
These include identifying with the work of people.
Labour laws include aspects of minimum working age, least time-based compensation, etc.
HDFC LIFE INSURANCE BUILDING A SERVICE BRAND must be mindful of these laws in
routine business tasks such as hiring, for example.
Under the discrimination law, HDFC LIFE INSURANCE BUILDING A SERVICE BRAND
must ensure to avoid episodes of unequal or uncalled for treatment based on an individual's age, inability,
sex, national source, race, religion, and sexual orientation.
HDFC LIFE INSURANCE BUILDING A SERVICE BRAND should train its human resource
management team in ensuring that there is no:
Unequal hiring
Discrimination in recruitment
Internal discrimination in talent management
Bias in training opportunities
Unfair compensation systems
Prejudiced promotions and succession management
Under this, HDFC LIFE INSURANCE BUILDING A SERVICE BRAND is required to give a
protected work environment to their workers.
Working environment security and wellbeing laws build up guidelines intended to dispense with
individual wounds and injuries from happening in the work environment.
all operations of HDFC LIFE INSURANCE BUILDING A SERVICE BRAND should be
designed to physically and emotionally safeguard and protect the employees and the labour force
employed
New entrants to an industry bring new potential and a choice to increase the market share and
overall share of the pie that puts pressure on price, costs, and the investment price essential to compete.
For HDFC LIFE INSURANCE BUILDING A SERVICE BRAND, particularly while new
entrants are diversifying from different markets into the chief industry, they will be able to leverage
existing talents and cash flows to shake up the opposition.
The threat of entry in the industry, consequently, puts a cap at the earning capacity and profit
capability for HDFC LIFE INSURANCE BUILDING A SERVICE BRAND.
While the threat of new entreaty is high, HDFC LIFE INSURANCE BUILDING A SERVICE
BRAND should maintain their prices or increase funding and investment to discourage new competition.
The risk of entry in an industry depends upon on the peak of entry barriers and limitations that are
a blessing for players such as HDFC LIFE INSURANCE BUILDING A SERVICE BRAND and on the
response that new entrants can count on from existing players.
If entry barriers are low and novices count on little retaliation from the entrenched competition,
the chance of entry is high, and profitability for HDFC LIFE INSURANCE BUILDING A SERVICE
BRAND will be moderated.
It is the danger of entry, not whether the entry of new players takes place that holds down
profitability.
3.2.1.4. Some barriers to entry for new entrants in favour of HDFC LIFE
INSURANCE BUILDING A SERVICE BRAND :
Capital requirements: a strong barrier to entry as new entrants will require strong financial and
resource cushioning for operations to take off and be sustained.
Economies of scale: a strong barrier to entry as existing players in the industry operate with high
economies of scale, which new entrants will take time to achieve.
Product differentiation: the strong barrier of entry if products within the industry have high levels
of differentiation on which they operate and approach customers.
Access to distribution: a standard barrier to entry since new entrants will have equal access to the
retailers and distributing agents within the industry.
Customer loyalty to established brands: a strong barrier to entry since customer loyalties and
perceptions are emotionally built and strongly enforced as long as the brand continues to deliver on its
core promise and quality.
There are always different alternatives or substitutes for various products that lead an industry.
These substitutes may be direct or indirect– the direct substitutes are the same category products.
produced by different players; indirect substitutes are the ones from different product categories that can
replace the product for HDFC LIFE INSURANCE BUILDING A SERVICE BRAND.
Switching costs for direct substitutes is not very high for consumers.
The per-unit-volume prices may be higher or lower.
This makes the threat of substitute high.
Alternatives to the product or substitutes may not be able to provide the same benefits
May often lead to additional costs incurred.
Switching costs towards alternatives becomes higher, and consumers may not switch to
substitutes.
This, in turn, will make the threat of substitutes low.
The buyer for HDFC LIFE INSURANCE BUILDING A SERVICE BRAND is not necessarily
the group that consumes the product – but rather refers to the group of customers that purchases the
product from HDFC LIFE INSURANCE BUILDING A SERVICE BRAND to either distribute further,
retail it, or even consume it.
Hypermarkets and supermarkets, as well as independent retailers and distribution agents to end
consumers, are the core buyers for HDFC LIFE INSURANCE BUILDING A SERVICE BRAND that
make up the market’s volume.
Supermarkets and hypermarkets, along with many food chains that are concentrated, which
increases the buyer power.
Products are stocked with buyers and retailers by HDFC LIFE INSURANCE BUILDING A
SERVICE BRAND based on consumer demand.
HDFC LIFE INSURANCE BUILDING A SERVICE BRAND will not experience switching costs
for switching buyers.
Multiple product offerings by buyers also increase buyer power.
Products offered by retailers are differentiated based on several characteristics – not only reliant
upon product characteristics but also consumer segment characteristics. Because of this, retailers are
expected to offer a wide range of the same product category. This works towards negating and weakening
the overall buyer power.
Buyer power is assessed to be moderate to high.
HDFC LIFE INSURANCE BUILDING A SERVICE BRAND can focus on differentiating its
product and increasing its demand with the end consumers through different marketing tactics, this will
increase the demand of the product with different buyers, and will work towards moderating buyer power.
HDFC LIFE INSURANCE BUILDING A SERVICE BRAND should employ economies of scale
to manage costs of production. If it offers products at moderate prices to buyers, it will again be able to
attract a large number of buyers for its product, and in this way, will be able to break off the high
bargaining power.
Supplier power refers to the power that is held by the suppliers in terms of pricing of the raw
materials and inputs used for the business.
For HDFC LIFE INSURANCE BUILDING A SERVICE BRAND, there are numerous
independent suppliers within the industry, and all comprise of a few pretty small operations that lead to
weakened overall supplier power.
Independent sellers and suppliers, however, can locate different opportunities and invest in
alternative markets – which can be a challenge for HDFC LIFE INSURANCE BUILDING A SERVICE
BRAND.
Suppliers can integrate forward into the decision making and business dynamics themselves as
well.
Also, to the buyers, the quality of the supplies and the raw materials is of utmost importance.
However, in an industry with a high number of suppliers, HDFC LIFE INSURANCE BUILDING
A SERVICE BRAND can switch to different suppliers at any time without experiencing any costs of the
business.
Overall bargaining power of suppliers is assessed to be moderate.
Get contracts with multiple suppliers and get resources and raw materials from them accordingly.
Invest in manufacturer controlled production facility to maintain consistency in quality.
Producers have begun to make use of brand management techniques and contemporary
merchandising by launching bold brands, label designs and marketing campaigns to become more
identifiable to the public.
3.2.5.3. Diversification
Purchasers and buyers have a wide range of products to choose from, with relatively low
switching costs. These factors tend to intensify rivalry.
Though players in the industry may off niche or premium products, they also continue to operate
in the mass markets at large, which again leads to high competition.
The high fixed cost and the high bargaining power of the buyers, which can lead to the lowering
of the prices from manufacturers add to the highly competitive nature of the industry.
The overall rivalry is assessed to be high.
Focus on research and development to identify market niche as well as to be able to add
differentiating factors t its products. This will increase its shield against influence from competitive forces
and their actions.
Build a strong and loyal consumer base by focusing on quality and marketing strategies.
Focus on capturing new markets – in the same region as well as new regions to avoid saturation of
resources in one market only.
The high number of direct and indirect alternatives available also make HDFC LIFE
INSURANCE BUILDING A SERVICE BRAND vulnerable to the high threat of substitutes.
Low to negligible switching costs experienced on the part of the consumers and buyers.
3.3.1.3. Profitability
The industry in which HDFC LIFE INSURANCE BUILDING A SERVICE BRAND operates is
highly fragmented.
It has numerous local and international players.
It is not very likely for players in the industry to integrate forward into on-trade or retail
businesses.
This results in the players experiencing high bargaining power of the buyers from the market.
3.3.5.2. Differentiation
Figure 1 Pentagonal analysis for HDFC LIFE INSURANCE BUILDING A SERVICE BRAND
Products offered during this stage re doubtful as success and life of the product is unproven and
not known.
HDFC LIFE INSURANCE BUILDING A SERVICE BRAND will use a focused strategy during
this phase to emphasise the uniqueness of the product.
The product or the brand will have a small market of consumers – known largely as early adopters
Marketing strategies adopted by the company will focus on generating awareness of the product
and therefore, will largely use a functional appeal.
HDFC LIFE INSURANCE BUILDING A SERVICE BRAND will require high capital during
this stage.
HDFC LIFE INSURANCE BUILDING A SERVICE BRAND will need investment and funds for
launching strategic marketing campaigns.
Funds will also be required for fuelling physical growth of the company in the form of investment
in equipment and property to facilitate growth.
Products in this stage have high growth and high market share.
There is also increasing competition and rivalry in the market – new entrants will enter and
compete looking at the success of products during this stage.
Firm size is generally larger and is more dominant over players if successful- compared to growth
stage.
Innovations continue but are stable and not radical.
HDFC LIFE INSURANCE BUILDING A SERVICE BRAND may also experience mergers and
acquisitions during this phase.
Diversifications are also most common during this phase as a means of survival.
Specialization
Brand identification
Push versus pull strategies
Channel determination
Product quality
Technological position
Vertical joining
cost position
Service
Price strategy
Financial or working influence
Parent organization relationship
Government relationship
Despite the various aspects available for comparison of competing players, it is often important
to differentiate strategic groupings of players of aspects of how they compete with each other,
and on aspects of where they compete as well
The strategic group analysis is also important for HDFC LIFE INSURANCE BUILDING A
SERVICE BRAND because it will assist in analysing the current market position of players, as well as
help in assessing future strategic moves and directions of the competition in the market.
Assists in evaluating and identifying different underlying factors that will influence the company’s
profitability.
Makes use of standard comparison aspects between different players in an industry to group them
as per strategic directions as well as strategic dimensions.
Different strategic dimensions along the matrix of strategic groupings are often characterized by
barriers to entry and exit along the strategic groups’ dimensions, as well as by mobility barriers.
These barriers make it difficult for companies to move along, and in between different strategic
dimensions – often forcing it to stay in place with the same competition.
After HDFC LIFE INSURANCE BUILDING A SERVICE BRAND has identified the possible
uncertainties of the macro environment, HDFC LIFE INSURANCE BUILDING A SERVICE BRAND
should decide on any two only. These can be:
Changes in technological advancements and developments. These changes can be in the
form that the industry has progressed to install more modern and contemporary technological
developments.
Changes in consumer demands and needs.
These two uncertainties of the future are those that will have the largest impact and influence on
the business.
HDFC LIFE INSURANCE BUILDING A SERVICE BRAND will now be able to place these two
uncertainties along a matrix.
Depending on the intensity and direction of the uncertainties and vulnerabilities, the business will
be able to chalk out four possible scenarios as probable plans of action for the future. For HDFC LIFE
INSURANCE BUILDING A SERVICE BRAND, these can be:
Install new technology, or update current technology to be on par with new technology.
Do market research.
Engage in innovative marketing to influence consumers.
Change vertical and backward integrated systems to ensure in-house or out-house
production of technology to stay ahead of the competition.
The following section presents a brief analysis of the VRIN strategic tool as it is applied to HDFC
LIFE INSURANCE BUILDING A SERVICE BRAND and its impact on the strategic direction.
4.1.2. Rare
4.1.3. Inimitable
4.1.3.3. Innovation
The innovation at HDFC LIFE INSURANCE BUILDING A SERVICE BRAND is an inimitable
resource that allows the company to stay ahead of the competition as well as maintain high
leadership in the industry by having the first mover advantage in its product portfolio
continuously.
4.1.4. Non-substitutable
4.2.1.1. Valuable
Having a strong worldwide presence is significantly valuable for an organization attempting to
expand its size, deals, and piece of the overall industry. It is a competitive and sustainable
method to acquire incomes from new and existing buyers.
4.2.1.2. Rare
HDFC LIFE INSURANCE BUILDING A SERVICE BRAND is one of the greatest company all
inclusive. Even though there are other worldwide and international chains of competing
companies, HDFC LIFE INSURANCE BUILDING A SERVICE BRAND has made a distinct name
for its quality and offers.
4.2.1.3. Non-substitutable
For the time being, no competition of HDFC LIFE INSURANCE BUILDING A SERVICE BRAND
could match such an enormous international presence in terms of quality and consistency. It
would require critical investment and assets to achieve this.
4.2.2.1. Valuable
HDFC LIFE INSURANCE BUILDING A SERVICE BRAND offers numerous exceptional and
fulfilling products that different contenders don't offer all the time. HDFC LIFE INSURANCE
BUILDING A SERVICE BRAND additionally incorporates information and detailed ingredients for
its products to interest an assortment of clients.
4.2.2.2. Rare
Other competition also offers different products that are offered by HDFC LIFE INSURANCE
BUILDING A SERVICE BRAND, which means that it is not a rare resource for the company. This
is because other players also have access to similar products and portfolios.
4.2.2.3. Inimitable
Considering other businesses and players are now using this capacity as a means of expansion
and penetration, it can, therefore, be imitated.
4.2.3.1. Valuable
The HDFC LIFE INSURANCE BUILDING A SERVICE BRAND brand name enables clients to
enjoy and feel a bond of association with the brand. This allows consumers to feel emotionally
attached with the brand, and experience it as an extension of themselves as well. As such, this
becomes a valuable asset for the company.
4.2.3.2. Rare
HDFC LIFE INSURANCE BUILDING A SERVICE BRAND is a contemporary brand name that
has a premium touch to it and is upscale, modern and lively. Most other companies and
competing brands don't have the quality and packaging to urge clients to engage in a way they
do with HDFC LIFE INSURANCE BUILDING A SERVICE BRAND .
4.2.3.3. Non-substitutable
It would be generally simple for other companies to revamp their packaging and duplicate the
plan of action of HDFC LIFE INSURANCE BUILDING A SERVICE BRAND. In this way, the
upscale and comfortable promise of the offering by HDFC LIFE INSURANCE BUILDING A
SERVICE BRAND could be imitated.
The core competencies and strengths of HDFC LIFE INSURANCE BUILDING A SERVICE
BRAND are organizational sources and capacities that enable the business to flourish regardless of
substantial challenge and strategic difficulties in local and international markets.
As the VRIO/VRIN analysis have shown and highlighted, the important core abilities depend on
intellectual properties and related propriety data or related technological structures.
Different resources and abilities appeared in the VRIN/VRIO analysis and review that are non-
core, and non-central skills but that help the business and its value chain.
HDFC LIFE INSURANCE BUILDING A SERVICE BRAND ’s core abilities are strong yet
restricted.
In the resource based view, this constraint presents key difficulties, as the organization wards off
competing players from local and international markets.
The core capabilities in the VRIN/VRIO analysis assume critical jobs in HDFC LIFE
INSURANCE BUILDING A SERVICE BRAND ’s value chain. Considering the resource based view
and Michael E. Doorman's value chain conceptualization, HDFC LIFE INSURANCE BUILDING A
SERVICE BRAND ’s value chain gives reasonable and tasteful products to target buyers.
The accompanying outline shows the value chain for HDFC LIFE INSURANCE BUILDING A
SERVICE BRAND and its situation in the bigger value arrangement of the industry:
Figure 3 Value chain for HDFC LIFE INSURANCE BUILDING A SERVICE BRAND
The organization has an internal transportation system of vehicles for making deliveries to other
companies that are in business with stocking and serving HDFC LIFE INSURANCE BUILDING A
SERVICE BRAND products – in the local markets.
In this value chain and value framework, HDFC LIFE INSURANCE BUILDING A SERVICE
BRAND ’s competitive advantage and abilities are distinguished through the VRIO/VRIN assessment are
huge in how the organization's procedures offer some incentive and advantage to the consumers.
4.3.4.1.2. Operations
HDFC LIFE INSURANCE BUILDING A SERVICE BRAND operates internationally directly or
indirectly. The company has owned offshore shops, as well as stocks its products with other
shops across different countries.
4.3.4.1.5. Service
HDFC LIFE INSURANCE BUILDING A SERVICE BRAND invests in customer service to develop
customer loyalty and build strong relations with its clients. The company invests in gaining and
incorporating customer feedback and in solving customer queries effectively.
4.3.4.2.1. Infrastructure
This includes different departments like management, finance, legal, etc. which are required to
keep the company’s business running.
4.3.4.2.4. Procurement
This involves purchasing the raw material for the final product. The company has appointed
agents that work for the company in different countries and regions to purchase consistently high
quality raw material so that the company can produce the finest product qualities for delivering to
the consumers.
4.3.4.3.1. Customer-centrism
Renewed and enhanced way of engaging with consumers.
Installation of sophisticated consumer data management systems.
Made use of artificial intelligence to enhance the value chain.
Increasing profits by decreasing expenses, while charging industry-average prices and costs from
consumers
Increasing share of the overall industry by charging lower costs, while at the same time making a
sensible profit on every trade since HDFC LIFE INSURANCE BUILDING A SERVICE BRAND has
controlled and reduced expenses.
The cost-based strategy and system are that – it includes HDFC LIFE INSURANCE BUILDING A
SERVICE BRAND being the pioneer regarding cost in the industry and market where it operates.
Just being among the most minimal cost producers isn't adequate, as the company leaves itself
wide open to aggressive attacks by other producers and players in the industry. These players
may undermine HDFC LIFE INSURANCE BUILDING A SERVICE BRAND ’s costs and in this
way hinder the company’s endeavours towards the expansion of its share of the overall market
pie.
Access to the capital expected to put resources into innovation that will cut expenses down.
Very proficient coordination’s.
A minimal effort base (work, materials, offices), and a method for economically cutting expenses
beneath those of different competing players.
5.1.3.2.1. Overall Cost Effectiveness through Cost Leadership and Cost Differentiation
Cost differentiation and leadership strategy for HDFC LIFE INSURANCE BUILDING A
SERVICE BRAND will be based on the nitty-gritty.
Cost initiative endeavours towards slicing expenses to a base to give clients lower costs and in this
manner will help the company of HDFC LIFE INSURANCE BUILDING A SERVICE BRAND to
reserve funds.
Cost leadership strategy requirements regularly identify with high specialized abilities and access
to capital
The company should also resource into innovation and guarantee economies of scale.
5.2.1. The need for SWOT because of expanded operations of HDFC LIFE
INSURANCE BUILDING A SERVICE BRAND
HDFC LIFE INSURANCE BUILDING A SERVICE BRAND is one of the world's most
premium, well known and most famous brands.
The organization has a developing populace of steadfast clients, which adds to the soundness of
the business.
In the SWOT analysis model, the global distribution network through directly owned subsidiaries,
or contracts with third-party agents further strengths HDFC LIFE INSURANCE BUILDING A SERVICE
BRAND by supporting activities.
For instance, the organization has a worldwide system of providers that are deliberately chosen
dependent on criteria relating to quality, for example, of raw materials as has been discussed in the value
chain - primary and supporting activities.
5.2.2.3. Strong investment in research and development, and high focus on innovation
The focus on innovation not only keeps the company apart but also facilitates its industry
leadership.
The internal core strengths and competent variables recognized in this section of the SWOT
analysis of HDFC LIFE INSURANCE BUILDING A SERVICE BRAND demonstrates that the business
has qualities that advance strength through expansion and a worldwide production network.
HDFC LIFE INSURANCE BUILDING A SERVICE BRAND has a premium brand image
attached, and thus all its products in the portfolio are priced highly
This expands overall revenues yet decrease the affordability of its items.
This internal key factor is a shortcoming since it confines the organization's share of the overall
industry, particularly in territories with generally lower disposable earnings
5.2.3.2. Standard and benchmarked regulations and business procedures for all
portfolio items
5.2.3.2.1. Generalization
Likewise, this SWOT analysis highlights that generalized standards for all portfolio products may
be a weakness because it restrains the adaptability of these products and items in the business.
5.2.3.2.2. Imitability
What's more, numerous HDFC LIFE INSURANCE BUILDING A SERVICE BRAND items are
imitable.
Several items in the portfolio have been imitated by completion, and are also being provided by
them at different price points.
Though the quality is unique to HDFC LIFE INSURANCE BUILDING A SERVICE BRAND,
the competing players have also developed close enough, and acceptable products.
This business condition engages competition, as has been highlighted already.
The internal factors in this section of the SWOT analysis of HDFC LIFE INSURANCE
BUILDING A SERVICE BRAND demonstrate that the business must create qualities to diminish the
unfavourable impacts of impersonation and the impact of high value focuses on the organization's share of
the overall industry in the international and local business.
5.2.4. Opportunities for HDFC LIFE INSURANCE BUILDING A SERVICE
BRAND(External Strategic Factors)
This section of the SWOT analysis and strategic model focuses on external components that
opportunities for business development and advancement. For this situation, the key
opportunities accessible to HDFC LIFE INSURANCE BUILDING A SERVICE BRAND are:
With an increased focus and awareness of health and wellness lifestyles by consumers, it is
important that HDFC LIFE INSURANCE BUILDING A SERVICE BRAND recognizes this as a viable
business opportunity.
Increased numbers of consumers are shifting to the green lifestyle of consuming environmentally
friendly and organic products.
HDFC LIFE INSURANCE BUILDING A SERVICE BRAND should focus on the expansion of
the product portfolio: inclusion of green products and environmentally sustainable services are suggested.
HDFC LIFE INSURANCE BUILDING A SERVICE BRAND can expand its income streams
through expansion and developing presence in emerging markets – such as Brazil, China and India.
This opportunity draws consideration far from the U.S. region, where the majority of the
organization's incomes are created.
Diversification is right now a minor strategy as can be observed from HDFC LIFE INSURANCE
BUILDING A SERVICE BRAND ’s competitive strategy and its overall directive strategy as well.
The business environments likewise display the chance to enhance the organization's
competencies and strengths
This will also increase its share of the overall industry through the association’s s with different
firms. For example, a partnership with real retailers improves dispersion.
The company can also formulate new B2B relations and contracts with other companies and
corporate entities.
The external key factors in this section of the SWOT analysis demonstrate that HDFC LIFE
INSURANCE BUILDING A SERVICE BRAND can improve its industry position by building up its
activities to make use of the opportunities in the international business markets.
HDFC LIFE INSURANCE BUILDING A SERVICE BRAND competes with a wide assortment
of firms in the local as well as the international market.
For instance, the organization competes against significant premium companies as well as against
cheaper companies that offer cheap priced items and products.
This external but important factor in the SWOT assessment undermines HDFC LIFE
INSURANCE BUILDING A SERVICE BRAND because such competing players can lessen the
organization's share of the overall industry by competing based on low prices and overall low costs of
production.
Additionally, this SWOT assessment also analyses increased competition as a noteworthy threat
against the business.
In light of the organization's shortcomings, the risk of imitation includes firms that attempt to
duplicate the taste, look and feel of HDFC LIFE INSURANCE BUILDING A SERVICE BRAND items.
Saturated market place and industry can also lower sales of the organization and shrink its share of
the overall pie
Increased competition can also lead to the increased cost of doing business for the organization if
they bring innovative processes, and implement novice systems to control costs
The industry environment and profitability are liable to invite independent developments, and
small-scale players.
These players may not have high levels of integration and may be retailers and marketers for items
produced during backward integration.
Strategic marketing techniques and promotional communications are expected to neutralize the
impacts of these patterns.
This section of the SWOT analysis of HDFC LIFE INSURANCE BUILDING A SERVICE
BRANDrecognizes external key factors that force difficulties to international expansion and growth of the
company as well as highlight market infiltration.
How will HDFC LIFE INSURANCE BUILDING A SERVICE BRAND make the most of its
strengths and core competencies?
How will HDFC LIFE INSURANCE BUILDING A SERVICE BRAND Circumvent its
weaknesses and shortcomings?
How will HDFC LIFE INSURANCE BUILDING A SERVICE BRAND capitalize on the various
opportunities present in the business environment?
How will HDFC LIFE INSURANCE BUILDING A SERVICE BRAND ward off, and manage
the threats that are present in the external business environment?
The analysis of the SWOT and the subsequent assessment and development of the TOWS
matrix will allow the HDFC LIFE INSURANCE BUILDING A SERVICE BRAND to be able to
identify the following answers:
Strengths and Opportunities (SO) – How would HDFC LIFE INSURANCE BUILDING A
SERVICE BRAND be able to utilize on its strengths to exploit the opportunities?
Strengths and Threats (ST) – How would HDFC LIFE INSURANCE BUILDING A SERVICE
BRAND be able to exploit its strengths and core competencies to keep away from genuine and potential
threats?
Weaknesses and Opportunities (WO) – How would HDFC LIFE INSURANCE BUILDING A
SERVICE BRAND be able to capitalize on its opportunities to overcome the weaknesses that HDFC
LIFE INSURANCE BUILDING A SERVICE BRAND is encountering?
Weaknesses and Threats (WT) – How would HDFC LIFE INSURANCE BUILDING A
SERVICE BRAND be able to limit its weaknesses and evade threats?
Strengths Weakness
TWOS Matrix
Leading premium company that Major dependence on the
operates internationally as the country of origin market
Leading presence across Despite being in operat
countries decades, has standard procedu
Reasonable control over regulations for all portfolio item
production and distribution due to Imitability possible
backward and forward integration competition
New South Asian and Asia Expanding into Asia Pacific Increasing more stores
Pacific regions available for region and stabilizing emerging the country of origin, and in
expansion – emerging markets markets by opening new stores and parts of the world – esp
Acquisition of medium-sized developing new products emerging markets such as
similar companies and shops in China and Brazil
developing countries
The TOWS Matrix is a moderately basic strategic tool used by HDFC LIFE INSURANCE
BUILDING A SERVICE BRAND for producing key alternatives and identifying key strategic
alternatives that may be pursued by HDFC LIFE INSURANCE BUILDING A SERVICE BRAND.
By utilizing it, HDFC LIFE INSURANCE BUILDING A SERVICE BRAND can take a look
towards understanding that it can best exploit the opportunities present, while at the same time also limit
the effect of shortcomings and ensure itself against threats.
The following section highlights the various strategies that may be used through the Ansoff
matrix. These strategies have been highlighted and identified through vigorous research
methodologies, as well as through expert analyst data and opinion.
One of the most popular means of developing a market is to use marketing strategically.
By making use of advertising and marketing communications, the company will be able to
disseminate information about its product, and the various benefits of consumption to its target market
easily.
Also, the use of social media for marketing will, at the same time allow the company to
communicate directly with the consumers, and answer their queries.
The company can make use of widespread marketing campaigns using traditional means as well as
means of social media to increase awareness of their product amongst the target market.
This task of educating the markets will give the company a first-mover advantage, as well as
develop important functional appeals for the product.
5.4.2. Market penetration strategies
The company can expand into other markets through its previous experience, as well as through
partnerships and contracts with other agents and parties.
The company can also develop subsidiaries, as well as offer its products through franchising as
well as licensing.
The geographical expansion is suggested into emerging economies because of the favourable
income levels of the consumers, as well as the growing infrastructure.
The company can penetrate existing markets by offering more shops or making its product more
widely available.
This may be done through increasing the accessibility of the product at places where the target
consumers are expected to purchase from, as well as improving the interaction of the product with
consumers at different touchpoints.
Another means of improving market penetration is through online retailing. HDFC LIFE
INSURANCE BUILDING A SERVICE BRAND can stock its products on online retailing sites locally
and internationally.
This would help the company improve sales, accessibility, as well as reach higher levels of target
consumers. All of this, in turn, would increase market penetration.
Besides, it would also help the company maintain and control costs for HDFC LIFE
INSURANCE BUILDING A SERVICE BRAND, and thereby help it achieve cost leadership in the
industry
To be able to develop new products, the company should have a focused interest and budget
sending allocated to new product research and development.
This research would take a basis in the consumer market and the overall market trends, to identify
the gap in consumer demands, and market availability of different products.
The new product would then generally be aimed towards fulfilling this gap.
The company should have dedicate incubation labs for the development of new products.
This means that this development should be a focused and separate entity that should focus on the
company’s innovation.
The company should also hire the right talent for business development and innovation to be able
to achieve targets and goals accordingly.
The company should also have a focused and strategic budget for marketing and communications
allocated for new product development.
This is because the company will need to increase the appeal, as well as develop functional and
emotional appeals and characteristics of the new product.
Communicate with the consumers to enhance sales as well as increase likeability and rate of
consumption and trial.
One way of increasing product penetration is that the company directly manages and controls sales
operation through owned retail.
This will give the campy leverage over communication, as well as product stocking and
placement.
The company can further expand its portfolio as a means of product penetration.
The expansion of the portfolio will allow the company to reach a different and diverse target
group, thereby increasing the overall share of the pie for the company
This will also increase HDFC LIFE INSURANCE BUILDING A SERVICE BRAND ’s products’
accessibility to different consumers.
When HDFC LIFE INSURANCE BUILDING A SERVICE BRAND is deciding upon a certain
strategic direction for the future, it will face challenges.
Choosing the right strategy at the right time can be a daunting task for managers.
It is therefore important that managers look at the strategy from aspects of its value and viability.
The principal thing the managers of HDFC LIFE INSURANCE BUILDING A SERVICE
BRAND will have to do is settle on a foundation by which to evaluate the different strategic alternatives.
They will also need to choose a viable methodology is to assess the different strategies
independently.
Strategies can be evaluated and assessed using criteria of suitability, acceptability and feasibility
(SAF).
The following section weighs different strategies and possible future directives for HDFC LIFE
INSURANCE BUILDING A SERVICE BRAND based on the SAF criteria.
5.5.2.1. Suitability
5.5.2.1.1. New market development
This strategy is suitable because it will allow HDFC LIFE INSURANCE BUILDING A
SERVICE BRAND to develop new markets by tapping into new consumer groups.
At the same time, it will allow the company to penetrate higher into existing markets.
Both these possibilities can be realized because HDFC LIFE INSURANCE BUILDING A
SERVICE BRAND invests in consumer research and has a strong financial standing.
5.5.2.2. Acceptability
The strategy is acceptable because it is in line with the company’s goals and mission.
Also, it is also in line with the internal marketing and culture of the organization.
As such, the strategy does not pose any risk – financially and otherwise and is also palatable for
stakeholder reactions.
Lastly, the strategy promises to give high returns. Overall, the strategy appears to be highly
acceptable.
5.5.2.3. Feasibility
5.5.3.1. Suitability
5.5.3.1.2. Innovation
Moreover, the company also innovates regularly, which can be an added benefit for the suitability
of the strategy.
5.5.3.2. Acceptability
5.5.3.2.1. Risk of financial investment
Therefore, the risk of new product development and consumer reaction would be there.
Also, the acceptability is also low because of stakeholder reaction – who might not all agree with
the expansion of the portfolio horizontally – i.e. The broadening of the portfolio away from the core
offerings.
Lastly, if the strategy works, it promises high returns, which make sit low to moderately
acceptable.
5.5.3.3. Feasibility
5.5.4.1. Suitability
This strategy is suitable because the company has high and focused budgeting for marketing and
communications.
This would also allow HDFC LIFE INSURANCE BUILDING A SERVICE BRAND to withdraw
from failing markets or markets that have a weak share, and gain access to rising markets.
The company will be able to exploit its research and development for strategic marketing
HDFC LIFE INSURANCE BUILDING A SERVICE BRAND will also make use of existing
systems and products to reach new consumer groups through marketing.
5.5.4.2. Acceptability
The strategy is acceptable because it poses a low risk in terms of investment in strategic
marketing.
Also, it promises high returns on investment in marketing through the promise of increased
awareness, increased penetration, increased brand recall and brand recognition – all of which will
translate into higher sales.
Lastly, stakeholders will also not frown upon this strategy, which makes it more acceptable to
implement.
5.5.4.3. Feasibility
The strategy is highly feasible because the company has a strong financial standing.
This means that the company can afford to increases budget for marketing purposes.
However, for the stagey to be successful, it is important that the company aces sure that all
promotional campaigns developed are in sync with consumer needs, demands and behaviour.
This is again possible for the company because of its investment in research and development.
6. FINAL RECOMMENDATIONS
Based on the overall internal and external analysis done for HDFC LIFE INSURANCE BUILDING
A SERVICE BRAND, this section will offer recommendations which will help the company take
on strategic directions that will enhance its core competencies and capabilities, as well as reduce
its chances for risks and threats? The following recommendations are thus made for HDFC LIFE
INSURANCE BUILDING A SERVICE BRAND: