Introduction
Strategic assessment is needed to evaluate the quality of a firm’s strategy. There are many different approaches to evaluating a firm’s strategy. The purpose of this paper is to perform a strategic assessment of American Automobile Association (AAA) and the Auto Club Group, one of AAA clubs, growth in the banking sector. The process includes introducing the firm and its industry, the firm’s interesting action and/or change, comparison to a firm within the same industry and the industry itself, and the final assessment of the company’s strategy.
AAA & ACG Overview & New Venture
American Automobile Association (AAA) is pronounced “triple A” and it is known as the largest motor club and travel organization. The company was first founded for “the purpose of lobbying for driver and passenger rights, fair laws and safer vehicles” and now has “broadened its horizons to include all types of travel-related services, as well as offer a variety of insurance and …show more content…
State Farm has 10.09% of the market share, which is the highest share an insurer holds (Bronson, 2016). Comparing AAA/ACG to State Farm will reveal if the insurers are doing the same thing or not. Based on the information available on State Farm’s and AAA’s websites, State Farm is offering the same banking and financial products as AAA/ACG, including checking, savings, debit and credit card, CDs, and loans (www.statefarm.com; www.aaa.com). Though both have the of the same products, State Farm offers additional services that AAA does not, such as mutual funds, annuities, and estate planning. Also, State Farm’s credit care is co-branded with Visa, while AAA is co-branded with MasterCard. Although there are some differences between AAA and State Farm, both have the same strategy of entering and growing their offered products in the banking and/or financial sector.
Conclusion: Strategic
Strategic assessment is needed to evaluate the quality of a firm’s strategy. There are many different approaches to evaluating a firm’s strategy. The purpose of this paper is to perform a strategic assessment of American Automobile Association (AAA) and the Auto Club Group, one of AAA clubs, growth in the banking sector. The process includes introducing the firm and its industry, the firm’s interesting action and/or change, comparison to a firm within the same industry and the industry itself, and the final assessment of the company’s strategy.
AAA & ACG Overview & New Venture
American Automobile Association (AAA) is pronounced “triple A” and it is known as the largest motor club and travel organization. The company was first founded for “the purpose of lobbying for driver and passenger rights, fair laws and safer vehicles” and now has “broadened its horizons to include all types of travel-related services, as well as offer a variety of insurance and …show more content…
State Farm has 10.09% of the market share, which is the highest share an insurer holds (Bronson, 2016). Comparing AAA/ACG to State Farm will reveal if the insurers are doing the same thing or not. Based on the information available on State Farm’s and AAA’s websites, State Farm is offering the same banking and financial products as AAA/ACG, including checking, savings, debit and credit card, CDs, and loans (www.statefarm.com; www.aaa.com). Though both have the of the same products, State Farm offers additional services that AAA does not, such as mutual funds, annuities, and estate planning. Also, State Farm’s credit care is co-branded with Visa, while AAA is co-branded with MasterCard. Although there are some differences between AAA and State Farm, both have the same strategy of entering and growing their offered products in the banking and/or financial sector.
Conclusion: Strategic