There is a need for the intermediaries to maintain efficient operations that could delivery value offering to the clients in order to compete with the direct sales team of the providers. Solutions has to maintain a substantial portfolio with its provider network and maintain its partnership in order to ensure provider cooperation. Solutions is constantly reviewing and enhancing its processes and systems in order to maintain its target operational cost. EFE Matrix Table 4.5. EFE Matrix of Solutions Importance Responsiveness Weighted Opportunities Source Weight (0% Rating Score to 100%) (1 to 4) Increase GDP growth drives more Macro O1 businesses which are the primary 10% 1 0.10 Economic purchasors of insurance. Large presence of SMEs (Around Macro 32,000 in NCR / 73,500 Philippines) Economic, O2 15% 1 0.15 that could be captured even without Market Analysis global affiliations Increased activity of Global Players 5 Forces, (EB consultants and brokers) means O3 10% 2 0.20 Market increase in demand for broker services Analysis locally. Increase in perceived value of Market O4 employee benefits as HR acquiring Analysis, 15% 4 0.60 Value Chain and retention tool Fast growing BPO segment and Market O5 improving status of the manufacturing 5% 2 0.10 Analysis industry Responsiveness Importance Weighted Rating Threats Weight (0% Score to 100%) (1 to 4) Market leaders undercutting 5 Forces, T1 commissions would drive commission 15% 4 0.60 Market rates down Analysis 5 Forces, Increased Consolidation of T2 20% 1 0.20 Market Multinational Clients Analysis Increased activity of Provider direct Value Chain, T3 sales force competes with 10% 3 0.30 5 Forces intermediaries. Total 100% 2.25 Solutions is moderately responsive (with a rating of 2.25) to the opportunities and threats posed by the market environment. Perhaps, its strongest weapons are its consultants who are experts in their fields as well as its continuing activities to standardize operations for easier
There is a need for the intermediaries to maintain efficient operations that could delivery value offering to the clients in order to compete with the direct sales team of the providers. Solutions has to maintain a substantial portfolio with its provider network and maintain its partnership in order to ensure provider cooperation. Solutions is constantly reviewing and enhancing its processes and systems in order to maintain its target operational cost. EFE Matrix Table 4.5. EFE Matrix of Solutions Opportunities Source Importance Weight (0% to 100%) Responsiveness Rating Weighted Score (1 to 4) O1 Increase GDP growth drives more businesses which are the primary purchasors of insurance. Macro Economic 10% 1 0.10 O2 Large presence of SMEs (Around 32,000 in NCR / 73,500 Philippines) that could be captured even without global affiliations Macro Economic, Market Analysis 15% 1 0.15 O3 Increased activity of Global Players (EB consultants and brokers) means increase in demand for broker services locally. 5 Forces, Market Analysis 10% 2 0.20 O4 Increase in perceived value of employee benefits as HR acquiring and retention tool Market Analysis, Value Chain 15% 4 0.60 O5 Fast growing BPO segment and improving status of the manufacturing industry Market Analysis 5% 2 0.10 Threats Importance Weight (0% to 100%) Responsiveness Rating Weighted Score (1 to 4) T1 Market leaders undercutting commissions would drive commission rates down 5 Forces, Market Analysis 15% 4 0.60 T2 Increased Consolidation of Multinational Clients 5 Forces, Market Analysis 20% 1 0.20 T3 Increased activity of Provider direct sales force competes with intermediaries. Value Chain, 5 Forces 10% 3 0.30 Total 100% 2.25 Solutions is moderately responsive (with a rating of 2.25) to the opportunities and threats posed by the market environment. Perhaps, its strongest weapons are its consultants who are experts in their fields as well as its continuing activities to standardize operations for easier
strama_annayu_draftv2_20130821.docx