Increasing Competition in the British Insurance Sector of the Market

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The increase of competition in most industries worldwide has led organizations to the development of policies that will help them to face their rivals. However, market conditions are not stable; firms that are interested in keeping their competitiveness need to continuously update their strategies; the level of industry competition is differentiated across countries in accordance with specific criteria: the position of the country in the international community, its infrastructure and its prospects for further growth are likely to influence the potential investors. Britain is a high-industrialized country; because of its rapid financial and industrial development the country has become one of the major commercial centers. Current paper focuses on a specific part of the British market: the Insurance sector; the various aspects of the specific industry are examined and evaluated; emphasis is given on the strategic position of major competitors and the potential prospects for further growth. It is concluded that the insurance sector is among the key industries of the British market; the strong competition in the specific industry has led many firms to change their existing policies but also their plans for the future; the analysis of the industry using the Porter’s Five Forces Model reveals that there are chances for further growth of the specific industry but it is required that certain terms are applied. On the other hand, the development of innovative strategies would help the firms operating in this sector to improve their performance but the level of success of this initiative cannot be guaranteed. Firms operating in the British insurance sector could increase their competitiveness by improving their policies but also by promoti... ... middle of paper ... ...ter’s Five Forces Model is indicated since it highlights all crucial factors that affect the competitiveness of firms in modern market. Works Cited AVIVA, UK, 2010, available at http://www.aviva.co.uk/ AXA UK, 2010, available at http://www.axa.co.uk/ Churchill, UK, 2010, available at http://www.churchill.com/ Directory M., 2010, available at http://articles.directorym.com/Business_Insurance_Top_5_Firms_London_KY-r800243-London_KY.html FSA, 2010, available at http://www.fsa.gov.uk/pages/Library/Communication/Speeches/2010/0318_kh.shtml Mari, A. (2008) UK Insurance sector to increase IT investment, Computing, available at http://www.computing.co.uk/computing/news/2219658/uk-insurance-sector-increase Reuters, 23 February 2010, UK Prudential buys Singapore insurance firm, Reuters, available at http://www.reuters.com/article/idUSTRE60516H20100106
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