SWOT Analysis
description
Transcript of SWOT Analysis
Jay Crook, Hieu Duong, Hải Lê, Christopher Muse
Jay Crook
Began in San Antonio in 1922 when 25 Army officers decided to insure each other’s vehicles
Founding values: service, loyalty, honesty & integrity
9,100,000 members Financial products for the US military and
their families (active or retired) Some products available to public Not publicly traded
https://www.usaa.com/inet/pages/about_usaa_corporate_overview_main
1922 Ford Model T RoadsterTop speed of 45 mph. Price was $240.
http://www.carstyling.ru/de/car/1907_ford_model_t/images/17337/
1922 – 25 Army officers in San Antonio decided to insure each other’s vehicles
1936 – 60% of all US military officers are members
1961 – “Once a member, always a member.” Military officers can remain members after leaving the service.
1962 – USAA begins homeowner insurance 1963 – Life insurance 1970 – Mutual fund services 1983 – Federal Savings bank
https://www.usaa.com/inet/pages/about_usaa_corporate_overview_history
1995 – Enlisted servicemen allowed to become members
1999 – Members can bank online at usaa.com
2003 – 96% of active duty officers are members, 44% of enlisted personnel are members
2008 – Car buying service 2009 – USAA Deposite@Mobile, the first
mobile deposit for the iPhone 2009 – Membership open for all who ever
served and their familieshttps://www.usaa.com/inet/pages/about_usaa_corporate_overview_history
9800 Fredericksburg Road
Photo from Google Earth
Jay Crook
Insurance:• GEICO
Corporation • MetLife, Inc. • State Farm
Mutual• Allstate• Nationwide• 21st Century• AAA• American Family• Farmers• Liberty Mutual• Progressive• The Hartford• Travelers
Banking:• Chase• Ally Online Bank• ING Bank• Charles Schwab
Bank• Citi Bank• Bank of America• PNC Bank• Capital One• Huntington
Bank• SunTrust• US Bank• Wells Fargo
Investment:• Edward Jones• Fidelity
Investments• Charles Schwab• Franklin
Templeton• J.D. Power• Wells Fargo• Merrill Lynch• Chase
Investment• LPL Financial• UBS
http://money.msn.com/auto-insurance/best-auto-insurance-companies.aspx
http://money.msn.com/auto-insurance/best-auto-insurance-companies.aspx
http://money.msn.com/auto-insurance/best-auto-insurance-companies.aspx
The average entrepreneur can't start a large insurance company (low)
Other financial services companies entering the market (banks or investment companies) Gramm-Leach-Bliley Act of 1999 removed
barriers in the market among banking, securities and insurance companies (medium)
What can you do with your money? (Medium)
Banking - putting it in a safe place, saving
Investment - allow it to grow Insurance - protect against risks Do nothing - no plan (many uninsured
motorists, young without life insurance, young without renters’ insurance)
Bargaining power of suppliers - (low) Suppliers of capital Underwriters changing companies
Bargaining power of customers - (high) Insurance is very competitive and
companies like to tout themselves as the best in quality and lowest in price
Corporate clients have greater leverage power
Hieu Duong
"To facilitate the financial security of its members, associates and their families through provision of a full range of highly competitive financial products and services; in so doing, USAA seeks to be the provider of choice for the military community."
https://www.usaa.com/inet/pages/about_usaa_corporate_overview_main
Hải Lê
Experienced and disciplined management team
Strategic position within the military Operational effectiveness of financial
products Very strong and conservative financial
management Great culture for employees
Computerworld magazine named USAA No. 1 for third straight year in “100 Best Places to Work in IT”
Q2 2012, USAA employed about 23,700 people
Industry-leading persistency, especially in military niche market
Customer base now tops 9 million Loyal customers Four diverse financial areas of customer
service A mutual reciprocal organization where
the members own the company Profits are returned to members as annual
dividends Everyone shares the risks and returns
https://www.usaa.com/inet/pages/about_usaa_corporate_overview_financial_strength
USAA Insurance Group/Selected Statistics
(Dollars in millions) 2006 2007 2008 2009 2010
Total revenue 9,459.40 9,677.40 9,691.4010,338.2011,178.90
Net income 1,547.40 1,114.80 804.1 616.8 850
Combined ratio (%) 88.6 96.7 100 95.4 96.9
Return on revenue (%) 19.5 12.7 7.2 10.4 8.9
Total assets 20,231.7021,963.3023,160.9024,755.4027,077.10
Statutory surplus 11,699.9012,904.5013,479.5014,545.7015,922.70
USAA Insurance Group/Competitive Position
(Dollars in millions) 2006 2007 2008 2009 2010
Auto liability 3,204.30 3,237.30 3,380.00 3,700.10 3,997.80
Auto physical damage2,777.102,736.702,872.60 3,059.50 3,284.90
Homeowners mult.p.2,271.802,302.20 2,349.40 2,680.90 2,791.50
Inland marine 115.8 127.9 139.2 148.1 159.3
Allied lines 101.7 92.8 104.1 135.7 156.1
Fire 89 95.2 104.3 120 136.5
Other premiums 172.6 116.8 133.8 148.5 153.3
Total net premiums8,732.20 8,708.90 9,083.50 9,992.8010,679.40
Total change net prem. 6.9 -0.3 4.3 10 6.9
USAA Consolidated Financial Highlights
(Dollars in millions) 2009 2010 2011
Revenues $17,558 $17,946 $19,036
Expenses 14,538 15,309 16,908
Net income 3,020 2,637 2,128
Assets owned 79,905 94,262 104,352
Assets owned & managed 137,288 147,858162,169
Total liabilities 62,888 75,551 84,312
Net worth 17,017 18,711 20,040
http://www.usaareporttomembers.com/financial_strength.html
USAA is called a "first" in the mobile banking market
Mobile wallet Mobile app for used car buying
Christopher Muse
Limited market: Military, ex-military and military families (finite market niche) Charter of company prevents expanding
beyond military in auto/home insurance Lawsuit: Trade dispute with Mitek about
remote deposit technology regarding who owns what part of the technology
Some disgruntled members posting angry messages to online consumer sites http://www.epinions.com/reviews/finc-Insurance-All-USAA_Group_-
_Auto http://usaa.pissedconsumer.com/usaa-bold-faced-liars-201205243
20511.html
Hieu Duong
Because of economic uncertainty, many people are looking for a sustainable financial budget
Improve marketing campaigns to publicize USAA products that are open to the public
Continue to expand mobile service as technology advances
Recovering economy could increase investments and loans from members
Jay Crook
Competitors (especially since Gramm-Leach-Bliley Act of 1999)
Continued recession Government interference & regulations
Government cutting military Military only focus May be viewed as monopoly and a national
security risk Dependence on technology (hackers,
internet access) Natural disasters: hurricanes, floods, fires,
earthquakes, tornados, etc.
One of the worst years in US historyTotal cost for US was $35 billion in damagesKilled more than 700 people
Included:Devastating winter blizzard in the Midwest Over 300 tornadoes on April 27 in the SoutheastLevel five tornado in Joplin, Missouri Hurricane Irene on the East CoastMassive drought across the South
http://www.globalpost.com/dispatch/news/regions/asia-pacific/japan/111229/worst-natural-disasters-2011
Christopher Muse
USAA is taking a conservative approach to company growth which is working very well. Do not change.
Increase market presence by opening satellite locations in areas with high military populations.
Identify partnership arrangements with military affiliated organizations that can funnel potential members to USAA.
Improve marketing campaigns to publicize USAA products that are open to the public.
Jay Crook, Hieu Duong, Hải Lê, Christopher Muse