GEICO SWOT Analysis, Competitors, Segmentation, Target Market, Positioning & USP

Berkshire Hathaway

Auto Insurance

Banking & Financial Services

15 minutes could save you 15% on car insurance

Direct-to-consumer sales model

Auto Insurance

Car owners-individuals and businesses

Private passenger auto insurer with personalized attention to customers

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

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

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

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

Below are the top 3 GEICO competitors:

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