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Immediate Issue/problem Being Faced

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Immediate Issue/Problem Being Faced:

Should Progressive roll out the Autograph program nationally, pilot the program in a few other states, or not at all? Good.

Basic Issues

-Progressive has been gaining market share and becoming a larger player in the industry due to their ability to utilize information to segment their prices. How will they continue to do this to become the market leader and surpass the three ahead of them?

-State regulations. With what happened in California being a reality, they must be cognizant of it happening again in other states and resulting in major losses. They must also consider what each state will allow and not allow.

-The cost of implementing this program nationally will be significant The case also says that it will take a lot of time.

Some in the company are concerned that Progressive is losing its focus.

Urgency/Importance:The industry is very fast moving and Autograph needs to be utilized before their first movers advantage is void Yes. So, is the issue urgent and/or important?

Decision Criteria:

Time is an important critera. For the progressive, it is useful to finish steps in time. If they can not utilize information to segment prices in time, the information may be outdated so that they will lose control for the progressive. Good.

The second one is the technology security. If the wirless can not connect information well and keep the privacy, there must be issues for Progressive. The third one is the cost. They need to control the cost to keep the innovation. They use the financial report to analyze, such as ROA and margin ratio.


1.Roll out nationally

2.Roll out with smaller pilot projects prior to rolling out nationally.

3.Keep the program in Texas only.

Missing Information:There is no information about the weakness of the current system and no more information about the financial budget, and the map of pay as you go innovation. The information about market share of company and the competitors and the competitive of company is needed. This will help us to analyze the possible of alternatives.

Assessment of Alternatives

- Roll out nationally


1. Progressive will expand the market shares and open the global market.

2. It will increase the company's reputation in order to attract more customers.

3. It will attract more professional people to join the Progreesive and have more new ideas, so that the team for Progressive will be stronger.


1. The cost is high for the national business.




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