Organizational Goals and Competitive Strategies: AFLAC

Topics: Business, Insurance, Organization Pages: 2 (426 words) Published: November 10, 2013

AFLAC Organizational Goals & Competitive Strategies
TMGT 605 Organizational Theory in a Technical Environment

According to the article, “AFLAC Chairman and CEO Daniel Amos explained how a small-town Georgia insurance company has become a household name in both Japan and the United States … AFLAC now enjoys 88 percent name recognition, on a par with McDonald's and Coca-Cola.” Hawkins (2003, p. 1

The differentiation strategy which successfully distinguished AFLAC from other insurance companies in Japan, was the introduction of the Corporate Agency System developed by opening lines of communication with their customer base and listening to their needs. This tactic made Japanese company Human Resource employees, AFLAC policy writers, earning their business a percentage of the profit.

This same approach allowed AFLAC to offer low cost policies to the consumer. The Corporate Agency System avoided high overhead costs without a negative effect to the available policies.

A resource goal was AFLAC’s decision to remove competition and increase marketing and sales forces with established Japanese insurance companies. AFLAC achieved this goal with a low cost leadership strategy and formed a relationship with their known competitor, Dai-Ichi Mutual Life Insurance Company. When Dai-Ichi realized that there was more of a profit to be made in selling AFLAC insurance policies, they quickly proposed an allegiance.

AFLAC’s marketing goals included positive advertising and low cost promotion of the company’s stability. With a low cost leadership strategy AFLAC minimized their advertising expenses by funding children’s medical organizations, such as AFLAC’s Children House and the AFLAC’s Cancer Center at the Children’s Healthcare of Atlanta.

In addition, to promote AFLAC, the organization saved money in marketing by using venues such as the Japan Society periodical without the cost of traditional marketing.

The company refrained from the...

References: Daft R L 2013 Organization Theory and DesignDaft, R. L. (2013). Organization Theory and Design (11 ed.). Mason, Ohio: Erin Joyner. 20131103143824859903932
Hawkins K 2003 AFLACS Winning Strategy in JapanHawkins, K. (2003, February 27). AFLACS Winning Strategy in Japan. Retrieved November 3, 2013, from 20131103122710852523088
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