Analyzing Environmental Forces in the Geek Squad Case Study

Silas Hartkaemper MKT 205 Geek Squad Case 01/31/24 1. What are the key environmental forces that created an opportunity for Robert Stephens to start the Geek Squad? Robert Stephens main environmental force was the technological force. With the help of Geek Squad, he wanted to help people, who have problems with electronically devices in terms of installing, operating, etc. This kind of service relates to changing technology and the impact of technology on customer value. Because the founder's idea was to provide services at customers homes to show them their value (Kerin, R. and Hartley, S., 2022). This also provides Social and Competitive forces, because at that time, there was no other business, which provided technological services at customers homes (alternative form of competition). There is also a social aspect, because the company creates good relationships with customers, when they take their time meet them at their house and provide services for them, this shows the customers value (Kerin, R. and Hartley, S., 2022). 2. What purchasing patterns of (a) all consumers and (b) women made the acquisition of Geek Squad particularly important for BestBuy? Best Buy had a very high return rate, which lead to frustrated customers and customers saw the service as a problem, when purchasing. To fix this problem, they started to work with Geek

Squad together. This resulted in a decreased return rate with the help of a 24-hour telephone support and some additional service plans (Kerin, R. and Hartley, S., 2022). In the past, the focus was more on men, but women become more interested in personal computing and home entertainment. So, the company also focused on women. Women expect personal service over the whole process of buying, installing and also after the purchase, which fits perfectly to Geek Squad (Kerin, R. and Hartley, S., 2022). 3. Based on the case information and what you know about consumer electronics, conduct an environmental scan for Geek Squad to identify key trend. For each of the five environmental forces, identify trends likely to influence Geek Squad in the near future. In terms of Social Trends, the company is increasing the interest among women in personal computing and home entertainment, as well as the expectations of services during and throughout the purchase are increasing (Kerin, R. and Hartley, S., 2022). The Economic Trend is moving to declining prices of electronics, because of competition, which makes them more accessible for consumers. In addition, the demand for customer electronics increases, which contributes to the growth of this industry (Kerin, R. and Hartley, S., 2022). Technical wise, the trend is directed to rapid advancements in wireless broad board technology and internet connected devices. Also new Technologies like password management and software updates are emerging (Kerin, R. and Hartley, S., 2022).

With the entry of Staples and Office Depots new services, the competition in the tech service sectors gets more intense. Best Buy tries tries to counter these competitors to retain customer loyalty with a new subscription service (Kerin, R. and Hartley, S., 2022). In terms of Regulatory Trends, through the evolution of regulations related to electronic transfers of copyright materials, Geek Squad is required to stay compliant. And because of ongoing changes in laws affecting the electronic services industry, companies need to monitor and adjust those frequently (Kerin, R. and Hartley, S., 2022). 4. What promotional activities would you recommend to encourage consumers who currently use independent installers to switch to Geek Squad? Geek Squad could offer a first-time free service for new customers, that they can create their own opinion on the services for free without any risks. They could also offer discounts for switching from an independent installer to Geek Squad, to make it more attractive to switch. To get the customers attention, they could also highlight their services and benefits through social media with success stories or positive experiences of customers, who switched to Geek Squad. Another opportunity to get more customers is to collaborate with electronic retailers to promote their services alongside product purchases.

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References - Kerin, R. and Hartley, S. (2022). Marketing. 16th edition. New York: McGraw-Hill, p. 76 - Kerin, R. and Hartley, S. (2022). Marketing. 16th edition. New York: McGraw-Hill, p. 101-105

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