Chapter 12, Problem 12.17VC

Summary Introduction

Case summary:

Company P is the one of the top I Industry that focuses on innovation. Company P was the 1^st company to offer installment payment of premium, 24/7 customer service, and drive-in claim service. But Company’s P important move is its way of distribution channel. Most of the I companies distribute their policies by direct contact with customer or intermediary agents; Company P was the 1^st company to do both.

Later in 1980s, Company P distribution channel included 800 agency number channels. 2 years ago, Company P was the 1^st company to start digital media by creating website. Soon after its 1^st insurance, policy was auto insurance policy online. Today, customers manage everything through Company P’s website from managing their account information to directly reporting the claims.

Characters in the case:

• Company P
• Company I

Introduction:

A supply chain is a system between an organization and its suppliers to distribute and produce a particular product. The supply chain of any organization takes care of every step involved from delivery of a product to final consumers. It is divided into two parts namely downstream and upstream partners.

To discuss: The ways that Company P had an impact on I industry.