Please ensure that this document is not copied and that this document is not distributed together with the information disclosed below in relation to the strategic issues addressed and relevant to Legal Wise. Factors Affecting Market Attractiveness Within Legal Wise Factors Affecting Competitive Strength Legal Wise Ansoff ProductIMarket Matrix.
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CHAPTERl
Introduction
Background of research
Legal Wise recognized this and the Gold Plus policy was introduced giving the Legal Wise customer a choice of cover. This study suggests some key aspects regarding the education and training of employees of Legal Wise.
Motivation for the research
This underlines the need to develop a clear vision of what the Legal Wise service is about and where it is going. Legal Wise has followed suit simply to become competitive in a market where it has been dominant, well-known and trusted.
Value ofthe project
By implementing the strategies I've outlined for future success, Legal Wise can reap the rewards. The chosen strategies, if implemented, can position Legal Wise in a competitive and number one position in South Africa.
Problem statement
The study will assist the organization and provide answers for future strategy that can be implemented to protect its market position and to improve its market position in the face of industry drivers and competitive pressures.
Objectives of the study
This study will also require the collection of data from rivals in the legal insurance sector. To identify models and to develop models that are relevant to focus on factors that Legal Wise must concentrate on for future success.
Limitations
The sources will be websites, interviews with the managing director, business reports, newsletters, internet searches, books, personal communications and newspaper articles.
Structure of the study
Theories and models will be discussed, which enable the development of a strategic model for Legal Wise. A case study of Legal Wise will be discussed in relation to the history of the organization and its current market situation.
Summary
The study is qualitative in nature, evaluating the strategies Legal Wise has used to succeed and the strategies to consider for future success. The section will examine Legal Wise's position and how success can be achieved, but will focus on the organization's weaknesses and how the organization can capitalize on its strengths.
Introduction
Competitive pressures in competitive industries are never exactly the same, but the competitive process operates similarly enough to use a common analytical framework to measure the nature and intensity of competitive forces (Porter, 1986). Porter's five forces model is a powerful tool for systematically diagnosing the most important competitive pressures in a market and determining how strong and important each one is.
Leadership
- Eight steps of successful change
The task of leadership is to develop the adaptive, innovative culture that includes organizational responses to changing conditions. The kaleidoscope of change as shown in Figure 2.2 provides design choices for a company to consider and adapt to the company, to have a competitive advantage and enabling culture to have an advantage. Leadership and implementation of the factors according to Figure 2.4 will lead to the success of a company.
Leadership Driven Change
A change in the organization's culture takes a long time, but is necessary and must continue. Leadership-driven change initiatives provide the building blocks for trust, openness and a culture that is friendly to innovation and change. In the process-driven phase, the leader is
Culture
The Value Chain
Appropriateness is an assessment of whether the strategy addresses the circumstances in which the organization operates, to what extent the new strategies would fit with future trends and changes in the environment, or how the strategy could take advantage of the organization's core competencies. Appropriateness is concerned with testing the rationality of the strategy. Suitability addresses the circumstances in which an organization operates or wishes to operate.
Testing Suitability
- Life Cycle Analysis
Assessing the suitability of strategic options can be a useful basis on which to screen options (Johnson and Scholes, 2000). Determining whether current and future positioning is viable can be done by asking whether demand is likely to grow or decline.
Portfolio Analysis Matrix
The Mckinsey Matrix
The Ansoff growth matrix as shown in Figure 2.6 is a tool that helps companies decide their product and market growth strategy. The output from the Ansoff product market matrix is a series of proposed growth strategies that set the direction for business strategy Figure 2.6 - Ansoff's growth model (Kotler, 2000).
New product development
Competitive advantage
The Five Generic Competitive Strategies
SWOT analysis is a simple framework for generating strategic alternatives based on a situational analysis, as shown in Figure 2.9. SWOT analysis can be used more effectively than is often the case, by demonstrating how it can integrate and enhance other frameworks of strategic analysis, and contribute to the evaluation of strategic options (Ambrosini,1998).
Elements of SWOT Analysis
- Opportunities and Threats
It is imperative that the benefits are considered both from the perspective of the company as well as from the customers we deal with. Weaknesses and threats should be minimized or avoided using SWOT analysis.
Summary
CASE STUDY
Introduction
- The vision statement for Legal Wise
The story could have ended here, but fortunately, the concept of legal insurance crystallized into a business idea and Legal Wise was formed in 1984. This is the organization's mission. The mission builds a value system in the organization.
Mission
The original founders of Legal Wise continue to control the majority of the issued share capital of the company. Legal Wise is the only South African company to be a member of the International Association of Legal Expenses Insurance (RIAD/lALEX), based in Geneva, Switzerland.
The People
Legal Wises Future
How Legal Wise has chosen to enter markets?
- Competitive pressures stemming from supplier bargaining power and supplier seller collaboration(a weak force)
- Competitive pressures stemming from buyers bargaining power and seller Buyer collaboration (a weak force)
The successful competitive strategy employed by Legal Wise has significantly intensified the competitive pressure on other competitors. Brand Preferences and Customer Loyalty, - Legal Wise customers are loyal to the Legal Wise brand.
The competence for the organisation comes from leadership
- Skill set by Zak Crafford
- Zak Crafford - The passionate leader
- Process Driven change
The leadership-led change within Legal Wise is based on the focus, tenacity and drive of Zak Crafford, like the other leaders at the top of the organization. Legal Wise has implemented training programs to allow employees to implement the change and drive it themselves.
Principal strategy-Implementing Task
In Legal Wise, the legal wise policy has achieved success by meeting the following criteria. The competence is robust due to the design of the policy and first mover advantage obtained by Legal Wise.
The importance oflinkages
- The Valoe Chain
Marketing and sales provide the means by which customers are made aware of the Legal Wise product. Service includes all those activities that increase or maintain the value of the Legal Wise product.
Sources of cost efficiency
Price, as with the Legal Wise policy, is an important feature, therefore Legal Wise has affordable policies, and Legal Wise has been competent in managing costs. The absence of affordable policies would not have enabled Legal Wise to be financially stable.
The Legal Wise Policy
- Product features
- Product development
The unique product of a Legal Wise policy, which is different to imitate thus provides competitive advantage to Legal Wise. Legal Wise has implemented a growth strategy, which aims to introduce new products into the existing market.
Scope of Business Activities
This added benefit gives the customer a free 2-hour instant consultation per year with a lawyer provided by Legal Wise. In June 2003, Legal Wise's product development team responded to changing customer needs and developed the Gold Plus Policy. This product innovation helps Legal Wise develop new customer lines. In addition to what the legal wise policy covers, the Gold Plus Policy adds 22,000 Rrs. cover for an additional RI.
Evaluation of SWOT analysis within legal wise
- The Unique value of Legal Wise
Various elements within Legal Wise's internal environment can also have an impact on marketing activities. The ability of Legal Wise to act as a behavior by which knowledgeable people and those who need their knowledge are brought together every day.
SWOT Analysis and its value to Legal Wise
- Legal Wise Policy, The Flagship product
The company focused only on legal advice and only one product called Legal Wise Policy. Legal Wise's main product is policy. The policy became widely known and respected.
Entering the South African Market
Therefore, in the year 2001, it was decided that customer service training would be given to staff, and Legal Wise should become the champion in this service industry. Organizations such as Legal Wise have come under increasing pressure to improve their customer service and focus their efforts on clients.
The Business Excellence Model and Its Values to Legal Wise
- National
- E. Commerce and Internet
Zak believes that the Internet may be among the best hopes for Legal Wise's future growth. Zak recognized that the Legal Wise sales force relied on appealing products to drive sales.
Image Enhancement
Amy Bekker, from LA Law embodies Legal Wise's values of empowerment and self-development. Changing Legal Wise's image and developing national campaigns will involve new approaches to market intelligence, marketing strategy, new product development and market planning.
The Gap Analysis and it value to Legal Wise
Once new products are developed, Legal Wise marketers create campaigns in a shorter time flow so products can go to market sooner. Market research and a slight increase in policy sales indicated that Legal Wise's efforts to improve its brand image had met with modest success by December 2002.
Summary
Introduction
Experience
Idea Lens
A business idea should not be seen as a fixed system, it should be seen as flexible.
Sustaining Low Price Advantage
Competition and CoUaboration
Product Development
Trust is the key ingredient of success and the magical reason for Legal Wise's success. As shown in Figure 4.2, knowledge is important for Legal Wise because it is in a knowledge economy.
Summary
RECOMMENDATIONS TO THE ORGANIZATION WHAT IT HAS DONE WELL AND HOW IT STRENGTHENED THE ASPECTS AND WHAT IT HAS NOT PAID ATTENTION TO.
Introduction
Over the years, the strategy has evolved from traditional financial planning of the 1950s to asset management in the 1990s. Legal Wise strategy requires investments in thought leadership, to stay one step ahead. The first critical step to reaching this level is to understand external and internal issues from Legal Wise's perspective and also from the broader perspective of the company's industry (including customers, competitors, suppliers and potential new entrants).
Vision Into action
In addition, implementing strategic change means getting people throughout the company to change their behavior. Third, value is actually when Legal Wise bridges the critical gap between strategy and operational management - when they develop strategies with the objective of maximizing value and then aligning the company and focusing on employees to realize these strategies.
Building strategic resources for strategy formulation
However, good strategy development is rarely so linear. Consequently, the real value is in the breakthrough strategy approach upon which the methodology builds. This approach is used when working with senior management teams to develop and implement winning business strategies. It is also a model of how we think and work with clients to create and implement winning strategies focused on the best alternative for shareholders.
Characteristics of Strategic decisions
This link between overall strategy and operational aspects of Legal Wise is important for two reasons. Legal Wise was successful not only because of a good strategic concept, but also because of the detail of how the concept was implemented in terms of logistics of access to and service to clients.
Levels of Strategy
Legal Wise's reason for buying Scorpion and Excalibur was as a result of structuring the companies around legal expenses insurance. And how does this affect what is expected for the future development of the organization?
