GEICO SWOT Analysis, Competitors & USP

SWOT analysis of GEICO analyses the brand by its strengths, weaknesses, opportunities & threats. In GEICO SWOT Analysis, the strengths and weaknesses are the internal factors whereas opportunities and threats are the external factors.

SWOT Analysis is a proven management framework which enables a brand like GEICO to benchmark its business & performance as compared to the competitors. GEICO is one of the leading brands in the banking & financial services sector.

The article below lists the GEICO SWOT, competitors and includes its target market, segmentation, positioning & USP. Let us start the GEICO SWOT Analysis:

SWOT Analysis of GEICO

For GEICO, SWOT analysis can help the brand focus on building upon its strengths and opportunities while addressing its weaknesses as well as threats to improve its market position.

GEICO Strengths

The strengths of GEICO looks at the key aspects of its business which gives it competitive advantage in the market. Some important factors in a brand's strengths include its financial position, experienced workforce, product uniqueness & intangible assets like brand value. Below are the Strengths in the SWOT Analysis of GEICO :

1. One of the fastest-growing auto insurers in the U.S, currently second-largest private passenger auto insurer in US
2. Employs over 30,000 associates, provides twenty four-seven, 365 days a year
3. Enjoy high ratings from top agencies for financial strength and claims-paying ability
4. Popular advertising campaigns, large number of advertisements intended to amuse viewers

5. Coverage for over 22 million motor vehicles owned by more than 13 million policy holders

GEICO Weaknesses

The weaknesses of a brand are certain aspects of its business which are it can improve to increase its position further. Certain weaknesses can be defined as attributes which the company is lacking or in which the competitors are better. Here are the weaknesses in the GEICO SWOT Analysis:

1. Direct to customer sales model causes operational constraints
2. Since 2013 dip in insurance penetration i.e. insurance premiums as a percentage of GDP
3. Intense competition in the auto insurance segment
4. Low interest rate scenario in the US hurts the profitability of insurers in the US

GEICO Opportunities

The opportunities for any brand can include areas of improvement to increase its business. A brand's opportunities can lie in geographic expansion, product improvements, better communication etc. Following are the opportunities in GEICO SWOT Analysis:

1. Involvement in motorsport sponsorships leading to enhanced brand awareness
2. Competitive prices in future
3. Full-fledged expansion into rideshare coverage

GEICO Threats

The threats for any business can be factors which can negatively impact its business. Some factors like increased competitor activity, changing government policies, alternate products or services etc. can be threats. The threats in the SWOT Analysis of GEICO are as mentioned:

1. Highly competitive market
2. Lack of people opting for Insurance
3. Awareness among customers is increasing with more access to information

GEICO Competitors

There are several brands in the market which are competing for the same set of customers. Below are the top 3 competitors of GEICO:

1. Amica Mutual Insurance
2. Liberty Mutual Insurance
3. 21st Century Insurance

Hence this concludes the GEICO SWOT analysis.

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About GEICO

GEICO Overview
Parent Company	Berkshire Hathaway
Category	Auto Insurance
Sector	Banking & Financial Services
Tagline/ Slogan	15 minutes could save you 15% on car insurance
USP	Direct-to-consumer sales model
GEICO STP
Segmentation	Auto Insurance
Target Market	Car owners-individuals and businesses
Positioning	Private passenger auto insurer with personalized attention to customers

This article has been researched & authored by the Content & Research Team. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.

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