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Case study example

Strategic Management and Strategic Competitiveness: Case Study of USAA

Subject
Business & Management
Type
Case study
Citation style
APA 6
Length
7 pages

About this sample

The paper examines how technology and globalization changes affect USAA, focusing on cyber-attack risks, shifting market environments, and changes in insurance products. It then discusses how USAA could earn above-average returns, applying the Industrial Organization model and the Resource-Based model. The paper is organized as a thematic case study that moves from external change to strategic analysis.

  • Technology change and cyber-attack risk
  • Globalization and insurance market change
  • Industrial Organization model
  • Resource-Based model
  • Differentiation strategy
  • Above-average returns

How it opens

Technology changes, such as the internet, have become pervasive in the insurance industry and have affected USAA (The United Services Automobile Association) significantly. The firm's fund and its service providers are vulnerable to information and operational risk due to cyber-attacks. These attacks are composed of unplanned and deliberate occurrences that include: system failures, technical inaccuracies, processing errors, and computer malfunctions (U.S. Securities and Exchange Commission, 2017). Moreover, these incidents include events such as computer viruses, market-wide technical-linked interruptions, failed external/internal processes, and illegal access to digital systems (via malicious software codes or hacking). The consequences of these incidents include theft, unauthorized monitoring, and malfunctions in the operating systems/physical infrastructure that support its service provider and the fund (U.S. Securities and Exchange Commission, 2017). Furthermore, there are extra expenses incurred to avert any cyber-attack in the future.

The Impact of Globalization Changes

Globalization changes have affected the USAA in several ways:

1. Variation in market environments: Globalization changes have resulted to the liberalization of state regulations of insurance markets, private property cost increases, internet sales of insurance products, and climate change.

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