An investigation of the strategies applied by health Insurance companies to improve profitability (a case of resolution health East Africa limited)

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Date
2013-10-28
Authors
Musyoka, Boniface Mwikya
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Abstract
The study was aimed at investigating the strategies that are applied by Resolution Health East Africa Limited to improve profitability. The study focuses on the management and activities of Resolution Health East Africa Limited, and will include the staff and related activities in at the health institution. The researcher adapted a descriptive research design as there are variables which cannot be quantified but can only be described. Through random stratified sampling method the researcher selected 31 out of total population of 62 staff members of the Resolution Health East Africa Limited Head offices in Upper Hill Nairobi. Data was collected through the administering of questionnaire to the respondents. Quantitative and qualitative techniques of data analysis was used to collect Data and the findings presented through charts, tables and graphs for simple understanding of the findings. In order to survive and remain profitable in the competitive environment, it becomes necessary for the threatened companies to be aggressive in their search and development of strategies that provide competitive advantage as they step up defensive strategies to protect their competitive advantages held. Strategic deployment of competitive strategies is a fundamental function for every .. company. Any company that fail to adopt a competitive strategies will continuously experience heavy financial loses. Insurance companies with strong financial background have long realized this key operational aspect and their strategy is to deploy various based on prevailing demands. Success of any insurance company depends on implementation of deployed competitive strategies. Successful strategies lead to superior profitability and sustainable competitive advantage. The ability of a insurance company to command a competitive advantage depends on the sustainability of the competitive advantages that it commands. The study also concludes that corporate growth and development strategies applied by the insurance company affect its profitability to a great extent. The study further concludes that market focus strategies employed by the insurance company enhance its profitability to a very great extent. The study finally concludes that application of differentiation strategies as a competitive strategy affects the profitability of the insurance company to a very great extent. From the study fmdings, the study recommends that in order to maintain its competitiveness in the insurance industry, the insurance company should offer their products and services at a lower price than its competitors.
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Department of Business Administration, 47p. The HD 7102 .K4M8 2011
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