Module 5: Team Project: Executive Presentation:

GEICO
Presented by: Three Dots and a Dash
Tina Swaney, Devin Holifield, & Carmen Guevara
August 2, 2023
OGL 355: Leading Org Innovation
Dr. Brent Scholar
 Agenda

◆ Introduction
◆ Organizational Structure
◆ Leadership
◆ Environmental Analysis
◆ SWOT
◆ Competitive Advantage
◆ Recommendations
◆ Conclusion
◆ References
◆ Questions

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 Introduction
◆ Geico is a leading company in the automotive insurance
industry founded in 1936.
◆ GEICO’s mission statement is to provide affordable and
dependable direct auto insurance to drivers across the United
States, while also representing our customers in their time of
need following an accident
◆ Its vision is to become a leading insurance company in the US.

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 Organizational
Structure
◆ Geico has a hierarchical
organizational structure
◆ The company is divided into
various departments, including
sales, underwriting, claims, and
◆ customer service
◆ Reporting lines flow from lower-
level employees to middle
managers, and ultimately to top
executives
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 GEICO Leadership

Todd Combs Seth Ingall Alison Fazio Damon Burrell Shannon Hobbs
President and CEO Senior Vice President Senior Vice President and CFO Chief Marketing Officer Chief People Officer
and Chief Legal Officer

The GEICO executive team is 27% female and 73% male. 60% of the
management team is White, 6% Hispanic or Latino, and 10% African
American.

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 Porter’s Five Forces

Porter’s Five Forces Industry Analysis is a model that identifies the competition
in an industry. It analyzes the competition using five segments:

● Existing Competitors
● Potential Competitors
● Buyers
● Suppliers
● Alternative Industry Providers

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 Environmental Analysis

Threat Level of New Entrants: HIGH

1. Low Barriers for Entry

1. Technological Advances

1. Market size and growth projection

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Environmental Analysis

Bargaining Power Level of Buyers: HIGH

Buyers: drivers aged 16-64 and businesses seeking
automotive insurance at a fair price

1. Digitally Active Millennials

1. Price-sensitive Market

1. Online platforms/social media

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Environmental Analysis

Bargaining Power Level of Suppliers: LOW

1. Size and Market Position

1. Multiple Suppliers

1. Technology and IT

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 Environmental Analysis

Threat Level of Substitute Products: LOW

1. Reputable and Established

1. Ridesharing Policy Opportunities

1. Car-sharing Services

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 Environmental Analysis

Threat Level of Industry Rivalry: HIGH

1. Established Players and New Entries

1. Strong Reputable Competitors

1. Low Product Differentiation

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 Target Market

Need Auto Insurance?

● According to Marketing Edge, the primary target
market would be adults 25-49 with a household
income of $30,000+
● Specifically, GEICO’s target market appeals to
customers with humor. For example, the very well
known GEICO gecko was chosen to appeal to its
market by sticking with the consumer beyond the ad.

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 SWOT Analysis
STRENGTHS
● Strong brand recognition
● Extensive product portfolio
● Strong financial backing
● Cost Leadership
● Ridesharing Services
● Increase for digital services
● International expansion
● 3rd party insurances
OPPORTUNITIES
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WEAKNESSES
● Limited geographical
presence
● Dependence online sales
● Limited core business
● Limited agent network
● Intense competition
● regulatory challenges
● economy/natural disasters
● Substitute products
THREATS
 Competitive Advantage

Cost Efficiency
● Streamlines claims processing, underwriting, and customer service, leading to reduced
operational costs and savings for policyholders.
● Strategic pricing, targeting specific customers and direct marketing efforts
● Lowered marketing expenses and claims payouts by eliminating sales agents and
ensure safer drivers.
● GEICO's margins were up to 4x’s higher than its competitors.
● Having higher margins than rivals granted GEICO growth opportunities.
● Outspent competitors and capitalized on scale advantages for nationwide advertising
● GEICO's gecko campaign became widely recognized and contributed to the company's
success.

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 Recommendations

◆ Global Expansion.

◆ Diversify insurance offerings to include health, pet, and travel.

◆ Partner with car manufacturers for telematics.

◆ Partner with employers to offer insurance for personal vehicles at a

discounted rate.

◆ Education: Online courses on insurance basics for life and home

insurance to educate the policyholder. Discounts for taking the courses
and purchasing policies.
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 Conclusion

● Geico is a leading insurance company with a strong brand reputation and customer-
centric approach.
● It is a hierarchical organizational structure, with clear reporting lines and a well-defined
chain of command.
● The GEICO executive team is 27% female and 73% male. 60% of the management
team is White, 6% Hispanic or Latino, and 10% African American.
● Geico’s threat level of new entrants and bargaining power of buyers is high while its
supplier bargaining power level and threat level of substitute are low.
● GEICO faces threat from natural disasters that can increase claim frequency as well as
competition from both traditional insurance companies and emerging Insurtech
startups.
● Recommendations to improve and innovate Geico include global expansion and
partner with car manufacturers for telematics.
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 References

Bercovici, J. (2011, March 11). In pictures: America’s 12 most loved spokescharacters. Forbes. https://www.forbes.com/2011/03/11/old-spice-snoopy-
m-and-m-most-loved-spokescharacters_slide.html?sh=2daad9e31404
Buffet, Warren. (2020, December 18). Collection: Warren Buffett - #208 'GEICO's Competitive Advantage'. https://www.yapss.com/post/collection-
warren-buffett-208-geico-s-competitive-advantage
Butler, Lilah. (2023, June 30). Best Rideshare Insurance. WalletHub. https://wallethub.com/edu/ci/rideshare-insurance/13884
Cho, Renee. (2022, November 3). With Climate Impacts Growing, Insurance Companies Face Big Challenges. State of the Planet.
https://news.climate.columbia.edu/2022/11/03/with-climate-impacts-growing-insurance-companies-face-big-challenges/
Fortune Business Insights. (n.d.). Pet insurance market. Retrieved July 31, 2023, from https://fortunebusinessinsights.com/industry reports/pet-
insurance-market
Hassan, W.. (2020, December 20). 31 auto insurance startups worth a look in 2020 - the startup pill. The Startup Pill - NOT A CULT.
https://startupill.com/31-auto-insurance-startups-worth-a-look-in-2020
Hattabou, A. (2019, October 1). Diffusion of innovations theory. Diffusion of innovations.
https://www.academia.edu/40488336/Diffusion_of_Innovations_Theor
Li, Y. (2023, May 5). Berkshire Hathaway is outperforming during turmoil, but Warren Buffett’s favorite child Geico is in trouble. CNBC.
https://www.cnbc.com/2023/05/04/berkshire-hathaway-is-outperforming-in-turmoil-but-geico-is-in-trouble.html
Luk, Glenn. (2016, April 1). Why is it hard for other auto insurance companies to copy GEICO's low-cost model?
https://readwriteinvest.substack.com/p/why-is-it-hard-for-other-auto-insurance
Mission Statement Academy. GEICO Mission and Vision Statement Analysis. Accessed July 31, 2023. https://mission-statement.com/geico/
Peterdy, K. (2023, May 20). Competitive advantage. Corporate Finance Institute.
17 https://corporatefinanceinstitute.com/resources/management/competitive-advantage
 References

Sather, Andrew. (2022, November 4). The Rise, Fall, and Rise Again of Warren Buffett’s GEICO Investment. E Investing For Beginners.
https://einvestingforbeginners.com/rise-fall-rise-again-buffett-geico/
Shaffer, James. Insurance Panda. (2023, June 8). https://www.insurancepanda.com/geico-auto-insurance-review/The Official Board. GEICO. Accessed July 31, 2023.
https://www.theofficialboard.com/org-chart/geico

The Zebra. (n.d.). What is telematics in car insurance? Retrieved July 31, 2023, from https://www.thezebra.com/auto-insurance/policies/car-insurance-telematics

Xaif. (2022, October 21). 360° marketing strategy of GEICO - 2023. IIDE. https://iide.co/case-studies/marketing-strategy-of-geico

Zippia. GEICO CEO AND LEADERSHIP. GEICO CEO AND EXECUTIVES. Accessed July 31, 2023. https://www.zippia.com/geico-careers-24377/executives/

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 Thanks!
Any questions?
You can find us at @threedotsandadash.com

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