Deutsche Allgemeinversicherung
Deutsche Allgemeinversicherung
Company
Deutsche Allgemeinversicherung (DAV) is one of the world's largest insurance companies. In 1996, 51% of DAV's business was in Germany (in which 60% was in retail insurance). Managers of other firms say DAV's strengths lie in both 'sound, traditional insurance management' (most likely the core insurance product offering) and 'outstanding customer services' (most likely the human contract element in the insurance product). The insurance company has cutting-edge technology. DAV seeks to lower its defects' internal costs and external costs by increasing its appraisal and preventation costs.
Competition
Concern#1: Insurance service products are increasingly becoming homogeneous (and easy to replicate), and not only does DAV compete against the other giants of the industry such as Allianz, Credit Lyonnais and Aetna, but in addition the company has many smaller insurance companies as competitors. Differentiating DAV's customer service can be used as an advantage over competitors.
Customers
In the case quality for customers is what customers value, i.e.: polite employees on the phone or through letters who can do their job rapidly without problems. It is important to think from the customer's perspective. It is very significant as this small attribute can give DAV a competitive advantage.
Concern#2: Specifically what customers value as quality and what they expect can be further researched through questionnaires or feedback. Quality is difficult to be measured in service industries due to the human element which has inconsistencies.
Concern#3: Delivering quality to customers posed a colossal mission for DAV to achieve. The case says that DAV had difficulty in providing customers with consistent, excellent quality as operations were run in many divisions in different locations. The size and diversity of operations made providing constant quality a very difficult task to achieve. A very significant part of this concerns
Company
Deutsche Allgemeinversicherung (DAV) is one of the world's largest insurance companies. In 1996, 51% of DAV's business was in Germany (in which 60% was in retail insurance). Managers of other firms say DAV's strengths lie in both 'sound, traditional insurance management' (most likely the core insurance product offering) and 'outstanding customer services' (most likely the human contract element in the insurance product). The insurance company has cutting-edge technology. DAV seeks to lower its defects' internal costs and external costs by increasing its appraisal and preventation costs.
Competition
Concern#1: Insurance service products are increasingly becoming homogeneous (and easy to replicate), and not only does DAV compete against the other giants of the industry such as Allianz, Credit Lyonnais and Aetna, but in addition the company has many smaller insurance companies as competitors. Differentiating DAV's customer service can be used as an advantage over competitors.
Customers
In the case quality for customers is what customers value, i.e.: polite employees on the phone or through letters who can do their job rapidly without problems. It is important to think from the customer's perspective. It is very significant as this small attribute can give DAV a competitive advantage.
Concern#2: Specifically what customers value as quality and what they expect can be further researched through questionnaires or feedback. Quality is difficult to be measured in service industries due to the human element which has inconsistencies.
Concern#3: Delivering quality to customers posed a colossal mission for DAV to achieve. The case says that DAV had difficulty in providing customers with consistent, excellent quality as operations were run in many divisions in different locations. The size and diversity of operations made providing constant quality a very difficult task to achieve. A very significant part of this concerns