Problem Definition Progressive is a service organization (an auto insurance provider) that is looking to diversify its service offerings. By examining Progressive's existing service offering, we see that compared to other insurance providers its economics are not typical. In exploring the reasons, we learn that the company does things very differently than its competitors and, as such, has significantly different capabilities. Understanding these capabilities is necessary before assessing the new service innovation under consideration: pay-as-you-go …
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showed last 75 words of 738 total
…preferred sectors. <Tab/><Tab/>Marketing segmentation was a competency that has worked for Progressive. However, customers may resent excessive categorization based on perceived insurance purchasing habits or income extrapolations by Progressive. The customers may view 'Progressive' as a Big Brother who pries into his or her personal lifestyle by monitoring their insurance purchasing trends and then tailoring an comprehensive insurance package plan for them with those assumptions.