GEICO has become a dominant insurance company that has made it challenging for other insurance companies to equally compare. Upon the arrival of the company over eighty years ago, the distinctive low-cost method gave them leverage over established insurance companies because they did not notice them as much. However, GEICO was gaining the attention of others pushing their use of exceptional advantages to surpass their competition. The core competitive advantages for GEICO is their low-cost model and the relationship with Berkshire Hathaway Inc. Many people around the world are familiar with legendary slogan, “Fifteen minutes could save you fifteen percent or more on car insurance.” that appears in many if not all GEICO print advertisements and television commercials. The slogan is used to inform viewers of how fast and affordable their car insurance could be after making a call to GEICO to receive rate quotes. Aside from their memorable catchphrase their ability to provide customers insurance at a low rate has been their focus from the beginning and continues to be their focus. GEICO manages to keep their prices low for many …show more content…
Initially, GEICO targeted military veterans, school instructors, and federal personnel to build up their company and expand their business out to customers that they found to be hazardous drivers. The recognition from Warren Buffet, the Oracle of Omaha, in his article “The Security I Like Best” in December of 1951, highlighted GEICO’s (formerly Government Employees Insurance Co.) ability to operate without agents or subdivision offices and still manages to give customers superior deductions as high as thirty percent. As the company continued to grow this lead to Berkshire Hathaway Inc., admiring the growth wanted to have them under their umbrella to invest in income profits they were