The Travelers Companies SWOT Analysis
The travelers cos which is headquartered in St. Paul, Minnesota and Hartford, Connecticut, is the largest Insurance Company in US according to the market share it controls. It employs around 32000 people from around the world and has current operation in all states of America, Canada, Ireland, Singapore, China and United Kingdom. The nature of this business is proving services and insurance products to commercial, personal and governmental units. Jay S. Fishman is the current CEO of this company. In 2011, the revenue of this company was recorded to be $25.446 Billion and assets were valued at $104.602 Billion.
Travelers Cos Strengths
It has almost been a century since when travelers have been in this industry; therefore it is much famous and firmly established. It also provides its services in all three units, i.e. personal, professional and governmental, thereby it is very unique and distinguished from other companies. For all these reasons, its market position is extremely strong and in US, it is the market leader of the industry.
It is also amongst the top 500 companies in America, ranking 98 amongst them. Further the market capital of the firm is a very large amount to be competed. This can be testified by the fact that in 2011, the market capital of travelers’ was over $24 billions (NYSE:TRV, 2011).
Travelers Cos Weaknesses
Although Travelers Company is established in US on a very large scale, its global market share is comparatively low. This is because it is particularly strong only in US and lacks geographical concentration. If it expands in to new areas, it will be able to dominate other companies and also maximize its profit.
Perhaps the greatest setback that Travelers face is its history regarding the legal issues. It unfortunately underwent an investigation regarding bad faith insurance practices, which de-motivates any of the investors to put money into such a company.
Opportunities for Travelers Cos.
Because of the increasing needs of people in these countries and terrific opportunities for maximizing profits, travelers cos will be just few steps away from global success. Integrations and mergers with companies in the same industry will also help to strengthen the position of travelers.
Besides this, it can expand its product lines. For example, it could diversify itself into services like health insurance, old age programs, etc. This would attract huge number of customers from all over.
Threats for Travelers Cos.
Though the company is internally very strong, it may face threats from external sources. The insurance companies in US are highly competitive in nature and a slight growth in any one of them may mean an obvious decline in Travelers demand. The top competitors of Travelers Cos. are Liberty Mutual Agency Corporation and Hartford financial services Group.
Other threats are the extremely fragile economical conditions around the globe which may mean a decline in investment in the future. Also, with the strict governmental laws and regulations may act as a barrier to travelers’ immediate success.
External Analysis for The Travelers Companies Inc. retrieved from:
Travelers. Retrieved from:
The travelers companies. Retrieved from:
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