USAA: SWOT Analysis

Brief Summary:

For Growth or survival, Companies continue to scan their environment to identify and assess
any new opportunities and threats. For my organization USAA, I have done the analysis and
have provided the details below. I will explain how the Analysis resulted in the below SWOT
Matrix and then recommend a course of action for USAA.
USAA: www.usaa.com

Explanation and Details:

As we know that Strength and Weaknesses are internal to an organization while opportunities
and threats are external factors. These factors are looked at holistically and not only from the
dimension of a particular business unit or competition.

Dimension of Analysis Explanation/Points

Strengths  USAA’s existing Member base
o USAA has around 13 million members. (Key Facts, 2019).
This current base itself is so huge and if a new product is
Confide
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potentially be a success.
 Member’s high retention.
o USAA Member’s trust USAA with their financial assets
more than the market competition with 96% retention
rate. (Key Facts, 2019)
 USAA’s technical resource bench
o USAA comprises a huge number of IT workforce enabling it
to have shorter time to market.
 Traditional Line of Businesses – Insurance and Banking
o USAA is 100 years old in terms of experience in selling
products like life insurance, Property and casualty
insurance and Banking.

Weakness  No experience in Tech driven digital products

o Innovative solutions like gps driven car safety gadgets to
provide better car insurance rates or personal medical
devices driven data analytics for life insurance. USAA has
no experience in such integrations to make their products
better.
 Market Data not in possession
 o Even though USAA has long history and great membership,
its customers are limited to military and its families. It
does not have data on open market consumer behavior on
its products.

Opportunities  Covid related insurance products

o After the covid, world has changed a lot. USAA can bring
alternate products which are related to its traditional
business (like insurance) but are helping people in times of
covid and beyond. For e.g. a Covid specific Term life plan
or health insurance.

Threats  The threats of new entrants definitely exist. Other companies may
bring similar products as well.
 The Covid is something that cannot be predicted, hence the
products when planned and worked upon may become outdated
even before launch.

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After the detailed analysis, evaluation of the above SWOT items, following are my
recommendations:

1. Build a USAA Covid Health plan and offer it to all Members.

Pros: Member’s will have more trust on a USAA product rather than a white-
labeled or brokered product.
Cons: Time to market is the key here.

2. Broker products from other insurance vendors

Pros: This will help USAA to focus to the mission of offering best products to
members available in market while not being a vendor itself. This will also
provide member’s a choice among various options of product types and vendors
(products, 2020). Also, the Servicing of the plans will be management by the
vendors hence saving USAA a lot of back-office work.
Cons: Since the plans/service will not be controlled by USAA, Members may not
experience same level of service, what they expect from USAA which might
tarnish brand image.
External references:

Health Insurance. (2014). Retrieved from USAA: https://communities.usaa.com/t5/Press-

Releases/USAA-Life-Insurance-Co-Expands-Health-Insurance-Solutions/ba-p/77843
Healthcare. (n.d.). Retrieved from Healthcare.gov: https://www.healthcare.gov/
HHS. (2014). Retrieved from HHS.gov:
https://www.hhs.gov/healthcare/about-the-aca/index.htmlmjnmjnjm
Key Facts. (2019, 12 13). Retrieved from USAA.com:
https://content.usaa.com/mcontent/static_assets/Media/USAA_Fact_Sheet_By_the_nu
mbers.pdf?cacheid=4275611199_p#:~:text=Nearly%2096%25%20member
%20retention.,and%20bank%20rebates%20and%20rewards.kaashvi ngnn
jhhmgnbhnmbhmnmnmmnmnm 767j8uyhjhknbmj,jkbgvbnhbnb
vcvcrgerryhjjotlk33w333333333333333333yttyklr4tut6r4366k654
nmnbmmmmmmmbgvhil
products. (2020). Retrieved from USAA: https://www.usaa.com/inet/wc/insurance-health-
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