<p align="justify">China Pacific insurance company was established in 2006. The company has been granted the approval by China Insurance Regulatory Commission. The company has specialization in providing the best services related to asset management to insurance institutions. The scope of investment of services involves funds, stocks, bonds, collection of wealth, and debt plans. Despite of this, the company has made its remarkable position in the industry and leading the market in China. The China Pacific insurance company adheres to multiple concepts like stable investment, long-term investment, and value investment. The company has the capabilities of like infrastructure investment plan, real estate investment plans, innovation capabilities, and many more (CPIC, 2019).</p>
<p align="justify">It is necessary for the company to take the competition in the insurance industry seriously. The industry is highly fragmented, and Porter five forces analysis helps the company in determining the competition level in the industry. It also analyses the new opportunities for the company that are necessary to avail for leading the industry in long run. Here is the detailed Porter five forces analysis of China Pacific Insurance Company;</p>
<h2 align="justify">Bargaining Power of Buyers</h2>
<p align="justify">China Pacific Insurance company deals with both corporate buyers and individual consumers. The business or corporate buyers have strong bargaining power, mainly because they buy the services in bulk. The Insurance company generates more profit from business market. however, individual consumers have weak bargaining power. Their impact is very less on the company’s profitability. But still they are also important. It is important for the China Pacific insurance company to understand the need and demand of the buyers and provide services and increase its customer base. Moreover, switching costs are high, which do not provide much choices to the consumers (Ingram, 2019).</p>
<h2 align="justify">Bargaining Power of Suppliers</h2>
<p align="justify">The bargaining power of the suppliers in the insurance industry is moderate. This is due to the fact that the main funding source for insurance companies are the premium, paid by clients. Thus, intertwining the suppliers and consumers are here. The supplier here has choice to select insurance agencies from many. However, it is necessary for the insurance companies to set minimum premium rates (Simcon blog, 2019).</p>
<h2 align="justify">Threats of New Entrants</h2>
<p align="justify">Threats from the new entrants are high. As insurance industry is profitable and growing on international and local level, there are firms who see profit in industry. China Pacific insurance company is not facing threats from new entrant, but also non-financial providers are entering in the market. However, to create the barriers of entry, many big companies do not let new firms to operate and take over them. Moreover, the rules and regulations are getting strict for new firms to operate in the industry (Ingram, 2019).</p>
<h2 align="justify">Threats from the Substitute Products</h2>
<p align="justify">The threats from the substitute products or services are low mainly. However, PF and PPF can act as alternatives but not too much extent. The china industry is facing growth in the insurance services. However, it is necessary for the China Pacific Insurance to penetrate well in the market, so that every customer can reach to the company for availing services. As per the growth analysis of the insurance, it can be seen that the industry will not have any decline due to substitute in near future. China Pacific Insurance should need to expand geographically for increasing its customer base (Simconblog, 2015).</p>
<h2 align="justify">Rivalry of Existing Players</h2>
<p align="justify">The competition in the Chinese insurance industry is very high. However, the industry is significantly contributing in the global growth of insurance. In 2017, the aggregate premiums across the globe was increased by 4%. It goes up from $4702.84 billion in 2016 to $4891.694 billion in 2017. It is estimated that this growth was particularly sustained with the help of emerging markets. And led by Celestial empire, who contributed 16% growth itself. China Insurance industry faces immense growth over a decade. From 2007 to 2017, the premiums had increased to $541.45 billion from $92.46 billion. It is necessary for China Pacific Insurance to increase its consumer base in order to maintain its leading position. The company should also look forward for geographical expansion to mitigate the risk (Atlas magazine, 2018).</p>
<h2 align="justify">References</h2>
<p align="left">Atlas magazine, 2018. China insurance industry in figures 1980-2017. [Online], Available at: <a href="https://www.atlas-mag.net/en/article/the-chinese-insurance-market-in-figures-1980-2017">https://www.atlas-mag.net/en/article/the-chinese-insurance-market-in-figures-1980-2017</a>, [Accessed on: 29th November, 2019].<br />
CPIC, 2019. About our company. [Online], Available at: <a href="http://asset.cpic.com.cn/xzcgl/xgygs/">http://asset.cpic.com.cn/xzcgl/xgygs/</a>, [Accessed on: 29th November, 2019].<br />
Ingram, D. 2019. Insurance industry Analysis. [Online], Available at: <a href="https://smallbusiness.chron.com/insurance-industry-analysis-81503.html">https://smallbusiness.chron.com/insurance-industry-analysis-81503.html</a>, [Accessed on: 29th November, 2019].<br />
Simcon blog, 2015. Insurance industry analysis. [Online], Available at: <a href="https://simconblog.wordpress.com/2015/08/19/insurance-industry-analysis/">https://simconblog.wordpress.com/2015/08/19/insurance-industry-analysis/</a>, [Accessed on: 29th November, 2019].</p>