Value chain deconstruction in the United Kingdom retail life insurance industry and resulting strategic options for new entrants to the market
Date
2004
Authors
Journal Title
Journal ISSN
Volume Title
Publisher
AOSIS
Abstract
Porter coined the term ‘value chain’ in 1985. Since then the concept has found general acceptance within the strategic planning realm. In order to explain changes occurring in industries affected by increased volatility, a thesis of the deconstruction of the value chain is gaining acceptance. This concept is investigated by means of a literature review. The theory is then tested in the turbulent United Kingdom (UK) retail life insurance industry to see if an application can be found. This industry is briefly analysed and the main environmental factors affecting it are investigated. These are a £27 billion per annum savings gap, under-performing equity markets, regulatory influences of depolarisation, stakeholder’s pensions and technological developments mainly as a result of the Internet. The conclusion reached is that the changes are creating at least partial deconstruction. Within this framework the strategic options for new entrants into the UK retail life insurance market are explored.
Description
CITATION: Dommisse, R. W. & Oosthuizen, H. 2004. Value chain deconstruction in the United Kingdom retail life insurance industry and resulting strategic options for new entrants to the market. South African Journal of Business Management, 35(4):a664, doi:10.4102/sajbm.v35i4.664.
The original publication is available at https://sajbm.org
The original publication is available at https://sajbm.org
Keywords
Life insurance -- United Kingdom
Citation
Dommisse, R. W. & Oosthuizen, H. 2004. Value chain deconstruction in the United Kingdom retail life insurance industry and resulting strategic options for new entrants to the market. South African Journal of Business Management, 35(4):a664, doi:10.4102/sajbm.v35i4.664.