Economics- Research Paper

The topic to be discussed is the company of Nationwide Insurance. I have chosen this topic due to the high amount of competition in this service. Insurance is a mandatory service for drivers and certain homeowners. This is a service offered in every state and by numerous companies. The issue with Nationwide Insurance is the market competitiveness. There are over 100 insurance agencies in the United States. Like Nationwide Insurance, these companies sell auto, life, health and casualty and property policies. Within this service, the amount of insurance purchased by consumers does not affect the selling price. The amount of production or sales of policies does not affect the market price of the insurance. In 2012, Nationwide Insurance was rated number five by Forbes magazine (2012) for auto insurance. This was rated by consumer satisfaction. Nationwide Insurance is a popular firm, but is not at the number one ranking and does not service all states. I propose to research the target markets for the firms and the economic status of these states. I will research the numbers of PIF (policies in force), the amount spent on claims and their marketing strategies. My conclusions will allow us to view how Nationwide reaches out to consumers, what profits are spent on and what they need to change to move up to the number one spot in today’s economy.

Internal Environment

Every service/production company has a history and a present situation. Nationwide Insurance is no different. Among the popular Insurance companies, Nationwide has a great history, a current strategy and many competitors.

Nationwide Insurance has grown over the last 80 years. According to Nationwide.Com (2013), the company began in 1925 as a Farm Bureau providing auto insurance to farmers. They were known as The Ohio Farm Bureau Federation. The company started in Ohio and in the year 1928, they expanded to other states. By the year 1938, home insurance was added to the list of their services...