Old Mutual Funeral Services: Vertical Integration and the Battle for Bereavement

What happens when a financial services giant decides to enter the funeral business? Old Mutual Limited (OM), a financial-services company in South Africa known primarily for its insurance, investments, and banking services, had identified a need to expand its reach by entering the funeral-services market, an industry traditionally dominated by independent, community-based providers. The chief executive officer of Old Mutual Funeral Services (OMFS) envisioned a fully integrated financial-services offering that would cater to customers through every stage of life, including end-of-life services. Her goal was to leverage OM’s established brand to provide a seamless experience for customers while competing with major players. However, this journey proved complex, meeting with external resistance from industry associations and sparking internal debates over OM’s brand alignment and operational readiness. In August 2020, the OMFS CEO had to decide whether to continue to work toward this vertical integration. How could she navigate the disruption caused by this strategic initiative and the significant stakeholder opposition that had resulted? What was the best way to achieve sustainable growth in the face of powerful rivals?