SWOT Analysis: Geico
Geico is committed to having the lowest cost insurance without sacrificing any quality.
While there is no “average” cost for the car insurance plans because each customer’s plan is different, a study shows that Geico has the lowest cost auto insurance plan at $1,297 per year which is significantly lower than that of some of their competitors. In comparison, Geico’s number one competitor, State Farm, has an average plan cost of $2,296 (Glenn, 2016). Having a low cost is Geico’s main competency, so having a competitive price for their car insurance plans is one of the most important things for their success. See Appendix B.
Customer Perspective & Results
It is well known that Geico is a customer service leader …show more content…
As the graph in the appendix indicates, Geico’s revenues have been steadily increasing from 2013 to 2015. 2015’s revenues represent a 9.8% increase from 2014. However, while the revenues increased, the profit from 2013-2015 decreased from $1.127 million in 2013 to $460 million in 2015. Geico attributes this decrease to “higher claim costs and severities across all major coverages” (Berkshire Hathaway 10-K). In the past few years, Geico has been ranked the number 2 Auto Insurer in the United States, only behind State Farm. In 2015, Geico owned 10.4% of the automobile insurance market. This number has grown significantly in the past 20+ years, growing from 2.5% in 1995 (Berkshire Hathaway 10-K). Geico’s increase of market share as well as their revenues, show that they are a strong competitor in the auto insurance …show more content…
This would impact the quality because more time would be needed to correct this error, resulting in an annoyed customer and a potential loss of sale. Factors that are included in a package that should be handled with precaution are pricing, discounts, and including all elements of a package that a customer wants. Properly training customer service representatives and agents pairs with precision in the package creation process because the least amount of errors created is ideal. Creating educated employees that are coached well from the start increases customer satisfaction because their time is being used