PORTER FIVE FORCES MODEL OF ADITYA BIRLA SUN LIFE

INSURANCE
1- COMPETETIVE RIVALRY- Insurance industry is becoming highly competitive
with 53 players operating in the industry
 Companies are competing on price and also using low price and and high
price return strategy for customers to lure them.

2 THREATS OF NEW ENTRANTS

 Other financial companies are also in the industry
 Overall threat is medium given that is subject to license and regulations

3 SUBSTITUE PRODUCTS
 Similarity in services makes switchover a potent threat
 Investment oriented customers have switched to other avenues.

4 BARGENING POWER OF SUPPLIERS

Suppliers being the distributer or agents have high bargaining power because
they have customer database and can influence customers in making choices

5 BARGERNING POWER OF BUYERS

 Bargaining power of customers especially corporates is very high
because they pay huge amount of premium