Date Added: Jan 2010
When Progressive Insurance began providing quotes for its competitors' policies to potential customers, many in the industry scoffed. The move seemed counterintuitive for a company driven to improve its market share. Why provide information that could send policy buyers elsewhere? Wharton Professor of Management Nicolaj Sigglekow explains, "While Progressive's move might have seemed risky, they did their homework and understood the level of uncertainty was actually quite low. And in the process, they created something unique. That unique offering - in this case being transparent about their own and their competitors' prices - is how you build competitive advantage." Progressive's online quote system quickly checks an applicant's credit and claim history as well as their driving record.