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AAA & ACG Overview And New Venture

840 Words4 Pages

Introduction Strategic assessment is needed to evaluate the quality of a firm’s strategy. There are many different approaches to evaluating a firm’s strategy. The purpose of this paper is to perform a strategic assessment on American Automobile Association (AAA) and the Auto Club Group, one of AAA clubs, growth into the banking sector. The process includes introducing the firm and its industry, the firm’s interesting action and/or change, comparison to a firm within the same industry and to the industry itself, and the final assessment of the company’s strategy. AAA & ACG Overview & New Venture American Automobile Association (AAA) is pronounced “triple A” and it is known as the largest motor club and travel organization. The company was first founded for “the purpose of lobbying for driver and passenger rights, fair laws and safer vehicles” and now has “broadened its horizons to include all types of travel-related services, as well as offer a variety of insurance and financial products and services” (www.aaa.com). The Auto Club Group (ACG) is one of AAA clubs, and its CEO, Joe Richardson, Jr., …show more content…

It is a good time for insurance companies to enter into banking with large U.S. banks being constrained by post-2008 rules that make it tougher for them to extend loans. This allows the insurance companies to grasp more of the market share (Basak, 2016). Furthermore, insurance companies have the benefit of being shadow banks, which are firms that act like banks without being regulated as a bank (Basak, 2016). In 2013, AAA was ranked 18th based on market share with having 0.86% market share (Danise, 2015). Overall, at this time the evidence shows that AAA is going in the right direction along with the rest of the industry and striving to gain more of the market

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