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According to Porter (1979), the competition status of an industry is determined by five forces: threat of new entrants, threat of substitute products or services, bargaining power of buyers, bargaining power of suppliers, and rivalry among existing firms. This research validates how firms can create their advantages by adapting Porter’s generic strategies including strategies of focus, low cost leadership, differentiation, and focus.
Firstly, this research conducted a throughout study on the Life Insurance industry, and identified several key factors for a company to be successful in this market. Secondly, this research pinpointed the competitive advantages /disadvantages of each individual company by SWOT (strength–weakness– opportunity–threat), and their market position resulted from their marketing activities. Finally, on the basis of five forces and value chain analysis, this research concluded the competitive strategies of Nan Shan Life, and predicted its future value in this industry.
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