Alternative Strategies for Aetna Inc.

ALTERNATIVE STRATEGIES for AETNA INC. Growth strategy is one of the primary concerns of any organization that needs to expand. It refers to an overall course of action that allows a firm to reach new markets, introduce new products or services or create market penetration plan. A firm like Aetna Inc. which is primarily an insurance company has a tougher job in this connection due to very stiff competition in the insurance industry.

But this very characteristic of the firm allows it to find new avenues of growth by taking advantage of the areas where competition has not entered yet. In the case of Aetna Inc. The best approach is to develop different alternative growth strategies and then implement that ones that appear to offer the most benefits against the competition. Some of the main reasons why a firm would want to have such an strategy include survival, higher profits, changes in market trends, expansion of market, new technologies etc.

In the case of Aetna Inc. It is a combination of some of these reasons. Being one of the oldest and most prestigious insurance companies in the U.S., the company cannot allow itself to become too complacent which is always a lurking danger with companies with a huge presence and a long history. Aetna is currently offering insurance plans in variety of field including healthcare, group insurance, and life insurance, dental and pharmaceutical.

There is competition in all these fields and the only way Aetna can think of expanding successfully is by introducing new services and products and by reaching new markets. NEW MARKETS: New markets would refer to new segments in the current market that Aetna can reach in order to expand successfully. In this regard, the biggest segment can be many patients which are hitherto ignored by the insurance companies. For example patients needing emergency pregnancy insurance. This is a new idea but worth exploring.

So many women in America suffer from lack of funding when it comes to accidental or unplanned pregnancies. Even with planned pregnancies, many women still do not have enough coverage or have no coverage at all and hence they find themselves in a financial crunch when they find out they are pregnant. However if any firm comes forward with an emergency insurance plan for pregnant women, it will be a huge success and Aetna definitely has the means and resources to explore this idea further.

By reaching into new markets, Aetna can successfully become a pioneer in a new field and hence meet and beat the competition head on. This requires a careful exploration of possible new segments within the already saturated market. That is the only way Aetna can expand in a market that may otherwise not offer many chances of expansion or growth. NEW PRODUCTS and SERVICES: The new products and services would also enable Aetna to stay with the current market and yet find enough opportunities for growth and expansion.

New products and services in existing market would require thinking of new ways to serve current market segments. For example Aetna can develop a new product to serve the teenage drivers' market. Every parent wants its teenager to be compressively insured, and hence Aetna can develop new products and services to serve this market even better.

It can develop new products that would meet the needs of young drivers and make them more pocket friendly so teenagers can also get involved with the payment plans instead of depending heavily on their parents. MARKET PENETRATION: Aetna can expand also by expanding its reach. This means if its products and services are more widely available and more easily accessible, it will have deeper market penetration.

Instead of offering insurance plans through employers along, it can also offer the same products to the self-employed, part-time workers, temporary workers and even housewives. This would allow for deeper penetration by creating wider presence. DIVERSIFICATION Another possible strategy could be diversification. This would mean Aetna offering more than just insurance plans. It can also offer related benefits like financial plans for future education of children etc. VALUE DISCIPLINE A company needs to focus on its core value discipline when expansion is being planned.

This means that a company cannot only implement a growth strategy, it also needs to focus on deeper core values that can make strategy a success. Three main value disciplines are Operational Excellence, Customer intimacy and Product leadership. For a company.