Subject category:
Case Method and Specialist Management Disciplines
Published by:
Harvard Business Publishing
Version: 29 April 2004
Length: 20 pages
Data source: Published sources
Abstract
Used as part of the second module of a course on Managing Service Operations, which addresses the design of sustainable service models. Consumer auto insurance is a price-sensitive industry in which customers rarely pay a premium to a provider even for additional service features. Progressive spends more on additional service features than its competitors do; consumers don't pay extra for these features, yet the company makes money on a product its competitors often do not. Central to Progressive's success is its ability (a) to turn operational savings into value-added service and (b) to capitalize on its unique competencies through clever service design. Progressive is considering a national rollout of Autograph, a pay-as-you-go insurance service offering that recently completed a successful pilot in Texas. A rewritten version of an earlier case.
Location:
Industries:
Size:
USD6 billion revenues, 19,490 employees
Other setting(s):
2000
About
Abstract
Used as part of the second module of a course on Managing Service Operations, which addresses the design of sustainable service models. Consumer auto insurance is a price-sensitive industry in which customers rarely pay a premium to a provider even for additional service features. Progressive spends more on additional service features than its competitors do; consumers don't pay extra for these features, yet the company makes money on a product its competitors often do not. Central to Progressive's success is its ability (a) to turn operational savings into value-added service and (b) to capitalize on its unique competencies through clever service design. Progressive is considering a national rollout of Autograph, a pay-as-you-go insurance service offering that recently completed a successful pilot in Texas. A rewritten version of an earlier case.
Settings
Location:
Industries:
Size:
USD6 billion revenues, 19,490 employees
Other setting(s):
2000