State Farm Swot Analysis

1430 Words 6 Pages
Strengths State Farm is one of the top ten global insurance companies based on revenue. It is one of the largest companies, including the largest in Property & Casualty mutual companies in the world. State Farm insures more autos and homes than any other company in the US, with over 20% market share.
Since the size and rankings of the company is so great it puts State Farm ahead of its peers, such as Vanguard & Northern Trust, in the financial industry. State Farms brand recognition can be accredited to its high market presence, strong agent sales force, satisfied customers with strong loyalty, and options of diversified products.
State Farm’s competitive advantage is hard to beat, the company offers claim handling, bundling of insurance
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One of reasons accredited with as to why State Farm has continue to come out above its competitors, such as All State, it’s due to its Mutual status. On paper, Allstate seems to be the company most closely modeled like State Farm. The one difference, State Farm is mutually owned, meaning it’s owned by its policy holders. Meaning, whatever State Farm does to please its customers, it also pleases its owners. Allstate, for example, is a stock company owned by public shareholders. This is one the biggest difference between coming out on top and not. A State Farm’s spokeswomen releases this statement, “Because we are a mutual company, we don 't have to have to sacrifice the long-term interest of our customers to accommodate the short-term interests of our stockholders. (Cahill, n.d.)” This allows State Farm’s selling points to remain as they always have been, keeping a high reputation for outstanding …show more content…
State Farm also worked to revamp its advertising and marketing, which is working. TV and Radio ads have strongly targeted the youthful markets, including a well-known jingle “Like a good neighbor, State Farm is there.” State Farm’s trendy marketing has attracted a lot of attention, by using catchy marketing, and well known spokespeople, State Farm continues to be ahead of the trend. State Farm also joined all the social media outlets, and created a YouTube channel to feature all their ads. State Farm has discovered that by reaching out to their young adults, they have also rebranded themselves for their more established clients too. It is from this continued change and growth that State Farm rates A++ on A.M. Best’s list, which is the “highest rating possible due to superior financial condition and operation

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