Question 1:
The key environmental forces that created an opportunity for Robert Stephens to start the Geek Squad Company include: changes in emerging technology and customer preferences.
A change in emerging technology is probably the biggest environmental factor leading to the success of Geek Squad. When Geek Squad was formed in 1994, technology was in the crux of changing and becoming more common place in daily life. During this time there was not any smartphones and personal computers were emerging on the national market with changes from Microsoft and Apple in the 90’s (Kapko, 2015). Therefore, with the new technologies coming out, customers for these products would need additional support and this is where Geek Squad found a great niche. As seen in the case study the following items were related to the changes in the emerging technology “Wireless broadband technology, high-definition televisions, products with Internet interfaces, and a general trend toward computers, smartphones, entertainment systems” (Geek Squad: A New Business for a New Environment, n.d.).
Customer preferences area another area where Geek Squad proved they could make a place for the company in the market. The company is a service oriented company specializing in providing customers with help navigating and resolving issues with technology. With the diverse amount of emerging technology when the company was formed, the “Agents” at Geeks Squad had a terrific opportunity to win over new customers trying to learn the new technology. Additionally, the Geek Squad “Agents” were dressed with an appearance which was purposefully designed “to create a “humble” attitude that was not threatening to customers” (Geek Squad: A New Business for a New Environment, n.d.). The customer service provided by the Geek Squad “Agents” is memorable and creates return clientele.
Question 2 (a):
The changes in the purchasing patterns of all consumers was the realization that they would need help with their new devices and that service providers to help them troubleshoot and resolve issues with their devices was critical. The devices consumers were purchasing had a new element of technology they had not experienced before and therefore Geek Squad was the answer to the looming issues of not knowing how to resolve technical issues with devices. As Best Buy became a more prominent store for electronics and gadgets, Geek Squad was bought out by Best Buy in 2002 to create an avenue for customers to receive help with their new devices they purchased at Best Buy (Geek Squad: A New Business for a New Environment, n.d.). Additionally, Geek Squad offers affordable service plans customers can easily and willingly sign up for when purchasing new items at Best Buy. For example, the least expensive personal computer service plan with Geek Squad is a one-time set-up fee of $49.99 and $9.99 a month, while when compared to another technical service provider the rates go up to a one-time set-up fee of $99.99 and $34.99 a month (Muchmore, 2014).
Question 2 (b):
The purchasing pattern change in women was related to a new interest in having their own personal computers and entertainment equipment. With more women purchasing electronic equipment, Geek Squad was able to effectively market their service skills to this demographic and entice them with the personalized service options, installation options, and available service options after installation. These services provided women with the security of knowing they would not be alone in learning their new electronic devices and equipment.
Question 3(a):
Some of the key trends based on what I know about consumer electronics and the case information are the following: consumers are highly interested in purchasing the best and newest devices but generally do not know how to use the latest technology; and consumers typically do not read the instructions, but instead attempt to learn the new technology through trial and error.
Question 3(b):
An environmental scan on the five environmental forces likely to influence Geek Squad in the near future includes the following:
Social: The increase of women customers identified in Question 2(b) above is social factors which will help Geek Squad increase their revenue, profit and return clientele. Women tend to do more shopping than men and scrutinize the services and products more closely.
Economic: Related to the social factor identified above, with more women in the workplace and more available discretionary income available to them, the chances for Geek Squad to increase sales and revenue is likely. Providing Geek Squad continues to provide superior service support and tailor to this market segment, the company can increase their economic standings.
Technological: As seen in the case study and in everyday life, technology is become more and more prevalent in consumers’ daily lives. With this factor, the need for service professionals to help with technology issues will only increase as consumers bring more technology and devices into their homes and daily lives. In today’s normal occurrences, smartphones are common place, but as The Internet of Things becomes more prominent, so will technology services.
Competitive: Since Geek Squad emerged in the 90’s as the leading service provider for help and assistance with technology issues they have become a staple in the market segment. Their status within Best Buy is well-known nationwide and has a strong prominence in the industry. Additionally, the low prices and diverse service plans offered allow them to differentiate from the competitors.
Regulatory: One of the regulatory laws Geek Squad tends to encounter is the transfer of copyright material including music, movies and software. During their troubleshooting and inspections of equipment issues the Geek Squad “Agents” need to be aware of these regulatory items.
Question 4 (a):
The differentiation strategy Geek Squad should maintain is the factor of being in the market the longest with the most experience. Consumers like to hear that a company is experienced and knows how to deal with their issues. Maintaining trends that the company has been doing this service for so many years and has encountered these issues before will build confidence in the consumers’ minds. Experience and reputation will ensure Geek Squad stands apart from its competitors.
Question 4 (b):
The promotional activities I would recommend for consumers to switch to Geek Squad from independent installers include: contests, social media, product giveaways, and customer appreciation events. These promotional activities are some of the top-rated types of activities for getting customers to switch vendors (Hose, 2015). Also, I chose these specific activities because they are all focused on providing something extra to the customer for which consumers tend to appreciate and enjoy. Consumers like to feel that their business is appreciated and valuable which causes them to switch and return to the same vendor.
Lessons Learned
The lessons I learned from analyzing the Geek Squad case study are that when there is an opportunity for a specialty niche, a savvy businessperson will embrace the opportunity. In this case study there are numerous examples of how the Geek Squad services are valuable to consumers and emerged at the perfect time to have a concrete foothold in the market. Finding the specialty niche and becoming the most prominent business in that area will ensure the value grows as the niche grows and expands.
References
Geek Squad: A New Business for a New Environment, n.d. Case Study.
Hose, C. (2015). Top Ten Promotional Strategies | Chron.com. Retrieved from http://smallbusiness.chron.com/top-ten-promotional-strategies-10193.html
Kapko, M. (2015). History of Apple and Microsoft: 4 decades of peaks and valleys | CIO. Retrieved from http://www.cio.com/article/2989667/consumer-technology/history-of-apple-and-microsoft-4-decades-of-peaks-and-valleys.html
Muchmore, M. (2014). Geek Squad Review & Rating | PCMag.com. Retrieved from http://www.pcmag.com/article2/0,2817,2220214,00.asp
