Allstate Case Study
Ryan Fluharty
Midway College
Dr. Ashe

Allstate has made the bold decision to focus its efforts on the United States and Canada. This move shocked many people and argued whether or not it was a good strategic decision. With all of the turmoil that Allstate has faced over the last decade, the leadership of the company had to make a strategic move that they believed would push the business forward, not create any more flak. Focusing efforts on two areas of the world, especially ones that the company already had a good market power over made sense. This was a perfect strategic move. Positioning the company in a place where they are comfortable without any unforeseen or uncomfortable external macro environmental challenges could only leave room for growth, or better yet, time to breath.
Allstate went through phases the last decade where they couldn’t decide whether or not they were an insurance company, bank or retail store. This confusion slowly, and then quickly, put Allstate behind their competitors. If you glance at State Farm, they have always been an insurance company. So in order for Allstate to compete more effectively with their competitors, it is time they decide what they want to be. If they want to be an insurance company, they need to be all in and create strategic plans to be the best at that one thing. The fault doesn’t fall completely in Allstate’s hands for the turmoil that they have faced over the past decade. The internet boom has contributed to their failures. Steve Daniels writes in the Chicago business article,
‘Geico and Progressive Corp. found a new formula for growth in the relatively mature business. They crafted a lower-cost model combining direct sales over the Internet and telephone with heavy television advertising. Offering lower prices and more convenience, they grew rapidly at the expense of Allstate and other insurers that sell mostly through agents’ (Daniels, 2011).
Steve Daniels speaks to exactly how Allstate began to decline due to the internet growth. The company as a whole was not ready for or this realm of business, thus leaving them far behind from the gate. Overall, in order for Allstate to keep-up with the market or perhaps one day dominate the market again, they need to function with a proactive strategy. In the present, this company is functioning with a reactive model that is holding them down. If history continues to repeat itself, Allstate may not be around much longer.

References
Daniel, S. (n.d.). Allstate misses the turn as rivals reinvent auto insurance. Crain’s Chicago Business.
Retrieved September 1, 2014 from http://www.chicagobusiness.com/article/20110625/ISSUE01/306259984/allstate-misses-the-turn-as-rivals-reinvent-auto-insurance