Individual organizational analysis with State Farm Essay

Individual organizational analysis with State Farm - Essay Example This precedent was set after the Paul v. Virginia case in which the power of the state to regulate state based insurance and mutual companies was challenged (Grace & Klein, 2009). Major industry players characterizing the mutual and insurance sector in United States have massive global influence and market dominance. This results into increased competition between well-established insurance and mutual companies like State Farm and other small scale and state based industry players. As a mutual industry player, State Farm provides impetus for economic growth by holding trust and providing funds for economic growth and development. The development of life insurance and other human based mutual services have changed the societal view of the industry as a whole. From an industry that was once viewed with skepticism, the insurance industry has attracted significant societal support due to the values it adds to insured individuals (Turner, 2005). Technological craze has created significant impacts in major industries in the United States economy including the insurance and mutual industries. Competition is currently defined by the ability of an organization to integrate proper information technology systems into its operations as a way of increasing efficiency and accuracy. Insurance companies are currency deploying significant technological tools in the operations such as the use of mobile technology, cloud computing and interactive web 2.0 to integrate its customer service and ensure proper service delivery. It is estimated that the insurance industry in the United States spent over $40.6 billion in 2012 in information technology services and products with an aim of... With the current competitions in the market, the adoption of sound strategies defines the success of a company especially in the insurance industry. State Farm has achieved great success this far as a result of its approaches and strategies that seeks to blend with the events within the market. However, to remain relevant in the face of the current competition, State Farm should adopt a customer-centered strategy that seeks to increase customer satisfaction. To identify the different concerns of the customers, the company should organize regular open days for interaction with the current and prospective customers. From this, the company can be able to gauge the overall view of the customers and act on their different concerns. The company has developed into one major insurance and mutual company in the United States with a great pool of loyal customers thus giving it a strong market backing. However, the participation in mutual business restricts its investment opportunities and rest rains its financial source to stock and the sale of shares. The company should improve its financial and credit services especially targeting its traditional customers as this will broaden its source of revenue and cushion it from loss during economic meltdowns.