MNC - AIA in Australia

1. Analysis of a
Multinational Enterprise
AIA Australia

2. Introduction
• Analysis of the multinational enterprise - AIA
Insurance in Australia
• Founded in 1919 - largest listed company in Hong
Kong - largest life insurer
• AIA Australia - re-brand of AIG Life - in 2009
• Vision – “Champion Australia to be the healthiest
and most protected nations in the world”
Analysis of a Multinational Enterprise – AIA Australia Slide 2

3. AIA entering to Australia
• Functioned as an ‘owned branch and subsidiary’ -
parent company is AIA Group Limited
• Transmit networks, knowledge, expertise for
operations, utilize local infrastructure, equipment's
and find trustworthy financial partners
• Over 2 and ½ million Australians
benefit from life insurance services
Analysis of a Multinational Enterprise – AIA Australia Slide 3

4. AIA entering to Australia cont.
• The Director of AIA Australia - appointed by the
parent company
• Hire their own local staff - provide employment
opportunities
• Train local employees to deliver their services directly
to the customers
• Agents in the frontline maintain healthy relationships
with customers
Analysis of a Multinational Enterprise – AIA Australia Slide 4

5. Competitive dynamics
• Finest standards of living in Australia - brings
opportunities to trades, industries and businesses
• Secured plat-form for foreign businesses – minimum
legal, political & financial risk for investors
• People coming to work and live in Australia - market
it is in continual development,
new market segments foreseen
Analysis of a Multinational Enterprise – AIA Australia Slide 5

6. Competitive dynamics cont.
• Australian life insurance industry is at an ‘oligopoly
market’
• TAL Life - Japanese life insurance company - achieved
the biggest market share – 17.8%
• AIA Australia – 2nd highest market share – 15.6%
• AIA Australia is continuously growing and increasing
its clientele - well-trained frontline work force
Analysis of a Multinational Enterprise – AIA Australia Slide 6

7. Organisational structure
• AIA Group uses a ‘Transnational’ org structure
• Shows high global integration and high local
responsiveness within Australia
• Taking their own decisions related to their clientele,
Australian market
• Cash flows are managed within
the subsidiary
independent profit center
Analysis of a Multinational Enterprise – AIA Australia Slide 7

8. Knowledge management
• Manage their knowledge ‘Transnationally’
• Expertise shared across borders - integrated in
worldwide operations
• KMS in AIA is shared in an IT system - store and
retrieve information - progress partnership, and
procedure alignment
• Key three features - adoption,
receiving, and adjustment
Analysis of a Multinational Enterprise – AIA Australia Slide 8

9. Innovation at AIA Australia
• Evolving and developing new ideas - trial the current
clientele - innovation to expand
• Understanding future opportunities
– iPoS
– iMO
– EDGELAB
– Emerging Entrepreneur program
– Robotics
Analysis of a Multinational Enterprise – AIA Australia Slide 9

10. Conclusion & Recommendations
• Has a greater potential where its market share is
considered
• Marketing programs that ‘touch the heart and soul’ -
target a bigger audience
• Introduce life insurance policies for the people who
are coming to live and work in Australia
Analysis of a Multinational Enterprise – AIA Australia Slide 10

11. References
• ‘ABOUT AIA’, AIA Group Limited and its subsidiaries or affiliates, copyright ©
2020, viewed on the 24th May 2020, at,
http://www.aia.com.au/en/individual/about-aia.html
• ‘AIA Australia Limited - Australian Company Profile’, IBIS World, Copyright ©
1999-2020, viewed on the 24th May 2020, at,
https://www.ibisworld.com/au/company/aia-australia-limited/9002/
• ‘AIA Brand Launches in Australia’, Zoneeducation.com.au, 2020, viewed on the
24th May 2020, at, https://riskinfo.com.au/news/2009/06/24/brand-launch-
of-aia-australia/
• ‘Australia - Business Environment & Risk Analysis 10/03/2018’, American
International Group Inc, Copyright © 2020, viewed on the 24th May 2020, at,
https://www.aig.com/knowledge-and-insights/k-and-i-article-australia-
business-environment
Analysis of a Multinational Enterprise – AIA Australia Slide 11

12. References cont.
• ‘Business risks’, Australian Trade and Investment Commission, 2020, viewed on
the 24th May 2020, at,
https://www.austrade.gov.au/Australian/Export/Export-
markets/Countries/Mongolia/Doing-business/Business-risks
• ‘Doing Business In Australia’, – UK Essays is a trading name of All Answers Ltd,
Copyright © 2003 – 2020, viewed on the 24th May 2020, at,
https://www.ukessays.com/essays/economics/doing-business-in-australia-
economics-essay.php
• ‘Foreign Multinational Enterprises in Australia’, World Economic History
Congress – Boston, © wehc2018.org, viewed on the 25th May 2020, at,
http://wehc2018.org/foreign-multinational-enterprises-in-australia/
• ‘INNOVATION AT AIA’, AIA Group Limited and its subsidiaries, copyright ©
2020, viewed on the 26th May 2020, at, https://www.aia.com/en/about-
aia/innovation-at-aia.html
Analysis of a Multinational Enterprise – AIA Australia Slide 12

13. References cont.
• ‘Insurance in Australia’, Wikipedia, edited on 15 October 2019, at 05:20, viewed on
the 24th May 2020, at, https://en.wikipedia.org/wiki/Insurance_in_Australia
• ‘KM Systems - Knowledge Management Tools’, updated on 23 July 2018, 2010 –
2018, viewed on the 26th May 2020, at, http://www.knowledge-management-
tools.net/knowledge-management-systems.html
• ‘Life Insurance Companies in Australia’, finder.com.au, © 2020, viewed on the 25th
May 2020, at, https://www.finder.com.au/life-insurance/companies
• ‘Wholly Owned Subsidiary, MERGERS & ACQUISITIONS’, Investopedia, 2020,
viewed on the 25th May 2020, at,
https://www.investopedia.com/terms/w/whollyownedsubsidiary.asp
• ‘YOUR CAREER WITH US’, AIA Group Limited and its subsidiaries or affiliates,
copyright © 2020, viewed on the 25th May 2020, at,
http://www.aia.com.au/en/individual/about-aia/careers.html
Analysis of a Multinational Enterprise – AIA Australia Slide 13

14. Thank You!