Last time we studied the SWOT analysis of La Poste which is the postal and express courier services industry in France. This time around, let us dive into the detailed study or SWOT analysis on Axa. Let’s get started.
Started as a small mutual insurance company from Normandy to establish itself as the world’s leader for insurance – Axa insurance company now deals in protecting various entities including people, properties, assets and many more.
Axa insurance company is present in almost every nation which is only possible by constantly upskilling in marketing games and staying relevant to the industry. Axa ads are known mainly for their creativity and marketing efforts. So if you are interested in learning the latest marketing efforts which are digital marketing – check out our Free MasterClass on Digital Marketing 101 by the CEO and Founder of IIDE, Karan Shah.
Before we go into the SWOT Analysis of Axa, let us know about Axa as a company.
One of the leading insurance companies in the world – Axa insurance company was established in 1816 by the contribution and dedication of a handful of men and women. It provides insurance in life, health, property and casualty. Also, it deals in services like corporate investment and finance.
The insurance institute operates from France and has an expanded presence in more than 54 countries including North America, the India Pacific region and the Middle East, with a presence also in Africa. Focusing on the main mission to gain the trust and satisfaction of customers today made Axa insurance company cross 105 million clients around the globe.
|No. of Employees||153,000|
|Market Cap||$75.61 Billion (2021)|
|Annual Revenue||€103.5 Billion (2019)|
|Net Income/ Profit||€3.85 Billion (2019)|
Products of Axa
There is so much more to this insurance company and what it has to offer to its customers than its intelligent and lovable spokesperson. The company also offers a wide variety of affordable insurance products and Axa mobile and web apps. It deals with:
- Property and casualty insurance
- Investment management
Competitors of Axa
Axa’s top five major competitors are:
- Sun Life
- ING Group
- Zurich Insurance
SWOT Analysis of Axa
SWOT analysis of Axa is a study which is undertaken by the company to determine its core strengths, weaknesses, opportunities and threats. It is a framework that is used to evaluate a company’s competitive position which later helps in strategic planning.
SWOT analysis can be conducted by any popular brand or any brand which is still new in the market can make use of this template to evaluate internal and external variables that might influence the brand authority and market development.
To better understand the SWOT analysis of Axa, refer to the infographics image below.
Below is a step-by-step detailed guide to help you with the SWOT analysis of Axa.
Strengths of Axa
The strengths are basically what makes the brand different from the other competitors and what the organisation excels at. Following are the strengths:
- Leading in its Segment: The second most powerful transnational corporation in terms of corporate control over global financial stability. Also, in the list of leading insurance companies itself is one of the biggest strengths of Axa.
- Global Presence: Axa has worldwide recognition in more than 54 countries because of its strong work performance and reputed brand name that it has gained over the years.
- Sustainability Decisions: Axa is always keeping the protection of its people in the first place using sustainable innovations. It also stopped investing in tobacco shares and bonds in the year 2016.
- Affordable Insurance: Axa insurance company is the market leader and serves the people in France with insurance products that are low in rates but with superior quality.
- Financial Position: Axa has a very strong financial position in the market with consecutive profits over the years along with accumulated profit reserves which can be utilised for future expenditures or marketing activities.
- High Level of Customer Satisfaction: Axa has gained trust of more than 105 million clients and has a very strong customer relationship management team through which they keep their current customers very satisfied and also enjoy a good brand equity status among potential customers.
Weaknesses of Axa
The weaknesses are a major drawback that stops the organisation from performing at its optimum level. They are the areas in which businesses can make improvements. The major drawbacks are as follows:
- Falling Share Prices: Recently, Axa reports profit leaps but falling share prices in the group fell by 2.17 percent to 19.13.
- Research and Development: Axa has a good share of expenditure on the research and development department but it is spending way less than a few of the players within the industry which have benefitted as a result of their innovative products.
- Diversity in the Workforce: The local workers contribute to the majority of the workforce at Axa making it difficult for outsiders to adjust and hence resulting in the loss of talent.
- High Employee Turnover Rates: Axa has a very high employee turnover rate as compared to its competitors which means it spends a lot on training activities as employees keep leaving and joining.
- Low Interest: Low-interest rate structure in France decreases the profitability of people buying insurance from Axa.
Opportunities of Axa
Opportunities are the favourable external factors that may give the organization a competitive advantage over others. The opportunities of Axa are as follows:
- Social Media: Over the years the number of active users on social media channels has increased and with this Axa can make use of its social media handles to promote its products, interact with customers and even provide after-sale services.
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- Transport Industry: The transport industry has been booming and is expected to boom in the next few years which has resulted in an increase in more auto insurance. This can be a great opportunity for Axa to enter this business.
- Globalisation: Increased globalisation doesn’t restrict Axa anymore to conducting activities in its own country which can act as an opportunity to extend operation in other countries and thus enter new markets and unleash potentials of other new markets.
- Future of Insurance Company: Global life premium insurance growth is predicted to rebound to 3% with increased risk awareness owing to COVID-19 and global economic recovery set to accelerate the demand for life insurance products.
- Future Trends: The next 10 years will see the insurance industry moving from traditional to more customer-centric products. In the post-pandemic era, due to personalized services, the products are given based on information collected from external sources and devices.
Threats of Axa
Threats are those factors that have the potential to provide harm to the organisation in any form. The threats of Axa are as follows:
- Gig Economy: Most organized companies across the world offer group insurance. Various online-based and reputed companies like Fiverr, Amazon Mechanical Turk, and others have entered the ‘freelancer’ population who work without any formal company allegiance. This has resulted in an enormous loss for the insurance companies.
- Technological Advancements: The technological advancements by a few competitors can pose a threat to Axa as today’s customers are more attracted towards new technological advancements and may be lost to competitors’ offerings thus reducing the market share of Axa.
- Competition: There is always an ongoing competition that puts downward pressure on the prices. This could lead to lower profits if it makes changes in the price or may also result in lower market share if it doesn’t make price changes.
- Fluctuating Interest Rates: The interest rates keep on fluctuating and don’t provide a stable financial and economic environment.
- Exchange Rate: The exchange rate also keeps fluctuating and makes it difficult for a company like Axa because it extends service internationally while its suppliers are local.
This ends our complete SWOT analysis of Axa. Let us conclude our learning below.
Axa is a well-known insurance brand with a significant global presence. In the SWOT analysis of Axa, we observed that the company is heavily reliant and enjoys strong brand recognition and trust with its customers. It has a strong distribution network and has reached across all the markets it serves, but suffers from an increasing number of suppliers in the same space and better R&D efforts by its competitors.
Also, one point not to miss out on is that Axa is in line with its marketing effort. It has created a customer base for itself by tapping into the digital era and creating a social media presence on several platforms. If you are interested in learning digital marketing, don’t forget to check out IIDE’s 3 Month Advanced Digital Marketing Course.
We hope this blog on the SWOT Analysis of Axa has given you a good insight into the company’s strengths, weaknesses, opportunities and threats. You can also read our comprehensive study on the SWOT Analysis of JP Morgan Chase.
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