The Strategic Analysis of Conseco Inc.

Conseco Inc.

Conseco was incorporated in 1979 as a life insurance holding company, with the sole telephone circuit activity of raising capital. It has with child(p) over time to become one of the leading sources of insurance, investment, and alter products in the United States. Conseco has approximately $95 billion in managed assets, 13 million nodes, and 14,500 employees. The firm is ranked 231 on the deal 500 list, with revenues of $8.3 billion in 2000. This case not volition answer four questions pertaining to Conseco Inc.

1. Conseco management emphasizes a strategy of increase by acquisitions for the first 20 years of the companys life. Critique this approach, put the advantages and disadvantages associated with this strategy?

Advantages

A. Increase Market Share

Through acquisitions, Conseco stooge gain great market share very quickly. Acquisitions of other companies has expanded Consecos business into other geographical locations. For example, Codelinks a subsidiary of Conseco, is groupd in India, given them the opportunities to do business there. Acquisitions strenghthens their market position and offers unseasoned opportunities for competitive advantage.

B. Increase Customer and Sales

Acquisitions increases a companies customer base and sales. When Conseco acquired Green Tree, it believed coarse cross-selling opportunities existed between entities. Conseco could tap into Green Trees extensive customer database with a full line of insurance products, freshly business sales would surely benefit.



Also, Green Tree finance products would be compatible with Consecos, so they would benefit from their customers. Acquisitions increases a companies customer base and sales.

C. Increases Technology/ Reduces Costs

When a new company is acquired, engineering science and information is combined. Combining operations with a rival can fill resource gaps, allowing the company to do things, which the prior companies couldnt do alone. Also, a good acquisition may offer healthy cost-saving opportunities. For example, Codelinks provided Conseco with...

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