International Company
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INTERNATIONAL COMPANY / 1International Company
The company we chose is an international fortune 500 company AXA that offer life insurance and financial management services. “It is based in Paris, France but operate in the United States, England, Thailand and Malaysia” (Fortune, 2010). The company expansion in United Kingdom is very slow and has 50% growth in Asia.
In the earlier period of time AXA has been struggling in the UK due to the harder economic situation. UK should focus on their pricing strategy, so the prospective customers can get greatest rate for the insurance and other financial services. The firm believes that the services they provide are very vital to the potential and existing customers who are looking for insurance plans or buying a new home or starting a new family.
For this segment of customers, low risk investment is very appealing especially in the challenging economic situations. On the other hand, they also should concentrate on the retiring segment of customers because they need careful and strong investment plan so they can have adequate retirement income.
To increase the members in this distinct contribution plans, by focusing on this age segment or the one in their 40’s will be helpful to sustain a healthy plan that they will allow members to retire with financial stability and security. AXA can raise the numbers of their members by focusing and encouraging such plans to employees through their employers. This process can increase the members of age groups of 40s and 50s.
“Several employers in the United States use contribution plans rather than definite plans. In the U.S. this is a new product perception with enormous achievements. All these plans are insured by Pension Benefit Guarantee Corporation (PBGC) and suggest a predictable income upon retirement” (Pension Benefit Guarantee Corporation, 2000). This whole process works due to offering pay credits and interest based earnings. Because benefits does not rely on the amount of work ready to contribute and employer ensured that and can be marketed to different agencies that needs them the most for instance service industries or others that wants to change the level of risk of current plans.
For existing and potential retirees, defined benefit plans are the plans that a firm preserves precise degrees to cover retirement benefits. A steady alternative would be the price that is competitive with defined benefit plans which is the welcome solution. Similarly, offering discount group rate to organizations that will attract more customers. In the discount group rate policy the segment of 30s and 40s would be more interested. AXA offer reduced prices in UK to the corporations which are getting greater response from the employers.
“Through informational ads in the manufacturing sectors in Malaysia the firm encourages basic services and workers should be educated on retirement planning” (Economy Watch, n.d.). In Malaysia the manufacturing sector has many foreigners while AXA can work with the government to specify Malaysian citizens and use direct mailing approach.
The economies for Malaysia and Thailand vary; While Thailand’s economy is doing well, Malaysia is still in the process of being developed. Thus, in an effort to raise the sales for this market in Malaysia, the price needs to be decreased.
It is better for Malaysia to offer basic packages rather than diverse packages that include full investment options and/or life insurance which is more appropriate for Thailand. Employers that are targeted can be large ones because a lot more workers exist in the Thailand’s manufacturing industry.
The most likely segment for success in sales is in Malaysia because the manufacturing sector there is the largest. Promotion must focus on the benefit, above and beyond what the governments may provide, upon retirement. The incomes in Thailand are increasing; therefore, promoting products, in order to make sure that the families spend their wealth, is the best way to go about thing.
References
Economy Watch (nd). Malaysia Economy: Profile. Retrieved from
Fortune (2010). Global 500 Companies. Retrieved from
PBGC (2000). A Predictable secure pension for life: Defined benefit plans. Retrieved from