netrashetty
Netra Shetty
United Services Automobile Association (USAA) is a Fortune 500[3] financial services company offering banking, investing, and insurance to people and families that serve, or served, in the United States military. In 2010, there were 8.0 million members.[1]
USAA was founded in 1922 by a group of U.S. Army officers to self-insure each other when they were unable to secure auto insurance due to the perception that they were a high-risk group.[4] USAA has since expanded to serve all members of the Armed Forces and all who served honorably in the US Armed Forces, as well as their families with property & casualty insurance, banking, life insurance, investment and financial planning products and services.
The company was one of the pioneers of direct marketing and most of its business is conducted over the Internet or telephone using employees instead of agents. Until the 1960s the bulk of its business was conducted via mail. In the late 1960s USAA began a transition from mail to phone based sales and service. A toll-free number was launched in 1978, and Internet sales and service was launched in 1999 via its website.
Recent Trends and Developments
The professional segment of the U.S. photo-finishing market increased nearly 9 percent to $5.3 billion in 1998 after a slight decline in 1997. The portrait and candid segment of the market, with 43 percent of the total, grew for 3 consecutive years, and the number of portrait sittings rose 2 percent in 1998. School-age portrait sittings account for one-fourth of total sittings. Preschool sittings, accounting for 12 percent of the total, declined for the second consecutive year. Other professional services include commercial custom lab work.
Photographic workers should expect to endure another year of employment cutbacks as companies make difficult restructuring decisions to consolidate manufacturing operations and continue to form strategic alliances with companies outside the industry. Total industry employment is expected to drop about 6 percent to 51,000 employees in the year 2000, with production workers accounting for about 60 percent of the total. The U.S. economy has enjoyed a period of overall healthy growth over the last several years. Discretionary spending and purchases of leisure goods and services have come to include many high-end photographic products, consumer electronics items, and recreational travel. This consumer spending pattern is expected to remain favorable, although indicators suggest that a slowdown in the economy may occur in 2000.
Over the next 5 years, the shift away from traditional photography will continue as manufacturers embrace digital technologies and produce innovative products that reflect this blending. Photo-finishers will offer both conventional film and digital finishing services to remain competitive. More film-to-digital conversions and a slowing in sales of film-based micrographic products in favor of digital hybrid imaging systems are expected. The transition from analog to digital photocopiers is projected to take place well before 2004 because of lower prices and the increased functionality of digital products. Color products will become more affordable, with higher speeds and greater resolution stimulating business sales.
er focus on the idea about how strong is the position of the buyers as well as the possibility of working together in ordering large volumes of products (12Manage 2009). It is important to consider that there are different factors that must be considered in analyzing the bargaining power of the buyer. First is that the population of the buyers in the industry, the bigger the number of the buyers or customers, the lesser the influence or power of the buyer, because of the fact that the group will be able to focus or target more number of buyers. On the other hand, it is important to focus on differentiation and standardization of the products, in the case of the group, there are different direct and indirect competitors in the hospitality industry, and thus it enables the buyers to have the ability to substitute. However, the edge of the group focuses on the high demand for quality and services.
3) Competitive Rivalry – the rivalry among the existing players in the hotel industry in the world is strong. This is because of the growing number of players at the same time, low differentiation of the products and services that are being offered. However, the main advantage of the group focuses on the loyalty of the customers, at the same time, the image that was held by its brand for a long time.
4) Threat of Substitution – focus on the how easy a given product or service can be substitute, especially when it was made cheaper (12Manage 2009). In the case of the company, the threat of substitution is somewhat high, because of the presence of some cross-product substation such as cheap motels and houses for rent.
5) Threat of New Entry – pertains on how easy or difficult it is for a new entrant to start competing. In the case of the group, it will be hard for the new entrant to enter the industry because it is expensive to enter the hotel industry, due to high initial capitals, at the same time; experience is needed, together with the presence of some economies of scale. The group can also create some cost advantage, because it was already in the business for the long time, thus it some control over its pricing. Above all, the group has an advantage in terms of image, loyalty of the customers and access to different vital technologies and skills.
USAA was founded in 1922 by a group of U.S. Army officers to self-insure each other when they were unable to secure auto insurance due to the perception that they were a high-risk group.[4] USAA has since expanded to serve all members of the Armed Forces and all who served honorably in the US Armed Forces, as well as their families with property & casualty insurance, banking, life insurance, investment and financial planning products and services.
The company was one of the pioneers of direct marketing and most of its business is conducted over the Internet or telephone using employees instead of agents. Until the 1960s the bulk of its business was conducted via mail. In the late 1960s USAA began a transition from mail to phone based sales and service. A toll-free number was launched in 1978, and Internet sales and service was launched in 1999 via its website.
Recent Trends and Developments
The professional segment of the U.S. photo-finishing market increased nearly 9 percent to $5.3 billion in 1998 after a slight decline in 1997. The portrait and candid segment of the market, with 43 percent of the total, grew for 3 consecutive years, and the number of portrait sittings rose 2 percent in 1998. School-age portrait sittings account for one-fourth of total sittings. Preschool sittings, accounting for 12 percent of the total, declined for the second consecutive year. Other professional services include commercial custom lab work.
Photographic workers should expect to endure another year of employment cutbacks as companies make difficult restructuring decisions to consolidate manufacturing operations and continue to form strategic alliances with companies outside the industry. Total industry employment is expected to drop about 6 percent to 51,000 employees in the year 2000, with production workers accounting for about 60 percent of the total. The U.S. economy has enjoyed a period of overall healthy growth over the last several years. Discretionary spending and purchases of leisure goods and services have come to include many high-end photographic products, consumer electronics items, and recreational travel. This consumer spending pattern is expected to remain favorable, although indicators suggest that a slowdown in the economy may occur in 2000.
Over the next 5 years, the shift away from traditional photography will continue as manufacturers embrace digital technologies and produce innovative products that reflect this blending. Photo-finishers will offer both conventional film and digital finishing services to remain competitive. More film-to-digital conversions and a slowing in sales of film-based micrographic products in favor of digital hybrid imaging systems are expected. The transition from analog to digital photocopiers is projected to take place well before 2004 because of lower prices and the increased functionality of digital products. Color products will become more affordable, with higher speeds and greater resolution stimulating business sales.
er focus on the idea about how strong is the position of the buyers as well as the possibility of working together in ordering large volumes of products (12Manage 2009). It is important to consider that there are different factors that must be considered in analyzing the bargaining power of the buyer. First is that the population of the buyers in the industry, the bigger the number of the buyers or customers, the lesser the influence or power of the buyer, because of the fact that the group will be able to focus or target more number of buyers. On the other hand, it is important to focus on differentiation and standardization of the products, in the case of the group, there are different direct and indirect competitors in the hospitality industry, and thus it enables the buyers to have the ability to substitute. However, the edge of the group focuses on the high demand for quality and services.
3) Competitive Rivalry – the rivalry among the existing players in the hotel industry in the world is strong. This is because of the growing number of players at the same time, low differentiation of the products and services that are being offered. However, the main advantage of the group focuses on the loyalty of the customers, at the same time, the image that was held by its brand for a long time.
4) Threat of Substitution – focus on the how easy a given product or service can be substitute, especially when it was made cheaper (12Manage 2009). In the case of the company, the threat of substitution is somewhat high, because of the presence of some cross-product substation such as cheap motels and houses for rent.
5) Threat of New Entry – pertains on how easy or difficult it is for a new entrant to start competing. In the case of the group, it will be hard for the new entrant to enter the industry because it is expensive to enter the hotel industry, due to high initial capitals, at the same time; experience is needed, together with the presence of some economies of scale. The group can also create some cost advantage, because it was already in the business for the long time, thus it some control over its pricing. Above all, the group has an advantage in terms of image, loyalty of the customers and access to different vital technologies and skills.
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