An Assessment of Competitive Market Strategy on Performance: The Case of Lion Insurance S.C.

Abstract

Competitive strategies are designed to enhance organization competitiveness. A competitive strategy comprises of business approaches to retain and gain more customers by satisfying their needs and expectations. The choice of a competitive strategy has a strong bearing on the performance and development of an insurance firm. This paper, as stated in the problem discussion, from its preliminary assessment spotted that Lion Insurance Company’s special focus was on challenges facing insurance companies in building competitive advantage. Thus, the objective of the research is to assess the competitive strategies adopted by Lion Insurance Company. The study used primary data collected by conducting interview and distributing questionnaires to the employees, and secondary data from annual report, relevant books and the internet. This study employed descriptive research design and the sample size of the population was calculated using Yamane’s Formula. The research findings were analyzed and the findings revealed that insurance companies invested very little in branch network expansion which created challenges, especially with regards to reaching out the rural market. Finally, it is recommended that any organization within this industry should develop strategic plans that aim at reaching more customers and creating new markets through establishing more branch networks, partnerships and geographical expansion into other regions.