Economic 4. investing and financing • The assets for

Economic attributes 1. DEMAND • Demand  is sensitive to price • there is rapid growing demand• The economic cycle is strong ( Demand high, profit high ) • Demand is not seasonal  2. Supply • Suppliers are unique services • There is high barriers to entry and to exist  3. marketing • The insurance company provide services to both business and  customers, so its use advertisements , sale staff and discount for promotion  4. investing and financing • The assets for insurance companies are short and long-term• The industry is relatively profitable and mature which lead to generation more cash flow operations.          Value Chain Analysis 1. Research productsCustomers are using dedicated price comparison sites in order to research insurance products. They’re also asking questions, through social media, to their connections and friends, seeking advice on things like the best car insurance company, or where to get the best deal.2. Obtain quotesSome insurers are using new technology, like iPhone apps, to generate, buy and renew insurance quotes. An online research company targeting advisers has developed the country’s first app for life insurance quotes.3. Policy buyingReviews and recommendations from “people like me” play an integral part in the customer decision making process. A good review by an influential blogger, or a comment by a social media influencer who appeals to the consumer audience can be more valuable than thousands of pounds worth of advertising. By interacting and engaging with influencers, brands can build up their presence and appeal to their target audience. 4. Service policySocial media allows insurers to interact and communicate with customers, and vice versa. This helps the insurer learn more about their customer’s needs and helps them educate about the best policies, the benefits of their current policies etc.5. Lodge claimMany insurers are building and piloting new applications to capitalize on the prevalence of mobile and app based communication to deliver information to claims handlers and policy holders. They’re also offering self-service portals where claims can be lodged quickly and effectively.Social media can help to disseminate useful information that could help to reduce claims. For example, travel insurers could provide useful advice about keeping valuables safe in hostile environments or extreme weather conditions. Claim handlers could also mine Facebook, Twitter and other social networks to assess the legitimacy of claims based on the data, comments and conversations of the claimant. 6. Renewal/Terminate policyCustomers mostly turn to websites to fulfill their renewal and termination needs, thus the same potential exists for insurers to use social media as a means to improve renewal numbers.            Production life cycle The product life cycle has 4 very clearly defined stages which are: Introduction, Growth, Maturity, and Decline. Each with its own characteristics that mean different things for business that are trying to manage the life cycle of their particular products.Introduction: This stage of the cycle could be the most expensive for a company launching a new product. The size of the market for the product is small, which means sales are low, although they will be increasing.Growth: The stage which characterized by a strong growth in sales and profits, and because the company can start to benefit from economies of scale in production, the profit margins will increase. This makes it possible for businesses to invest more money in the promotional activity to maximize the potential of this growth stage.Maturity: During the maturity stage, the product is established and the aim for the manufacturer is now to maintain the market share they have built up. This is probably the most competitive time for most products and businesses need to invest wisely in any marketing they undertake. Decline: The market for a product will start to shrink, and this is what’s known as the decline stage, because the consumers are switching to a different type of product. While this decline may be inevitable, it may still be possible for companies to make some profit by switching to less-expensive production methods and cheaper markets.-In the following pages, we will explain production life cycle stages through net income, operating activities, investing activities, and financing activities for both BKIC and BNH over 2012-2016BKIC (by millions) 20122013201420152016net income4,2153,7024,2402,7072,857operating activities2,8441,3014,916(1,755)3,094investing activities3,105(4,087)(590)(2,192)6,076financing activities(1,616)(2,117)(2,110)(2,467)(2,158) 2012 BKIC was at maturity because it has net income positive, operating and investing activities positive and the financing activities negative2013-2014BKIC was at growth it had increase in net income and positive operating activities but in investing and financing activities is negative2015-2016BKIC was return to maturity because it has net income positive, operating and investing activities positive and the financing activities negative      BNH (by millions) 20122013201420152016net income3,3052,3253,0223,8244,204operating activities4,8449694,4321,8443,653investing activities(141)(310)(254)(309)(265)financing activities(960)(2,024)(2,444)(2,940)(2,305) 2012-2013BNH was in decline because it has decrease in net income and operating activities and has negative investing and financing activities 2014, 201 and 2016  BNH was in growth because it has increase in net income and positive operating activities and it has negative investing and financing actvities