Assignment on digital marketing geek squad a new business for a new environment

Nguyễễn Khánh Linh – HS171437

FPT UNIVERSITY
FACULTY OF BUSINESS ADMINISTRATION
=====000=====

ASSIGNMENT
ON
DIGITAL MARKETING
[GEEK SQUAD – A NEW BUSINESS FOR A NEW
ENVIRONMENT]

Submitted to:
Lecturer’s Name: Nguyen Thi Hong Hanh
Submitted by:
Student’s Name: Nguyen Khanh Linh
Student ID: HS171437
Course Title: Marketing Principles
Course Code: MKT1701
Date of Submission: 10/02/2022

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Nguyễễn Khánh Linh – HS171437

Hanoi - 02/2022

TABLE OF CONTENTS
INTRODUCTION
REPORT’S CONTENT
A. QUESTION 1: WHAT ARE THE KEY ENVIRONMENTAL
FORCES THAT CREATE AN OPPORTUNITY FOR ROBERT
STEPHENS TO START GEEK SQUAD?
B. QUESTION 2: WHAT CHANGES IN THE PURCHASING
PATTERNS OF (A) ALL CONSUMERS AND (B) WOMEN MADE
THE ACQUISITION OF GEEK SQUAD PARTICULARLY
IMPORTANT FOR BEST BUY?
C. QUESTION 3: BASED ON THE CASE INFORMATION AND
WHAT YOU KNOW ABOUT CONSUMER ELECTRONICS,
CONDUCT AN ENVIRONMENTAL SCAN FOR GEEK SQUAD
TO IDENTIFY KEY TRENDS. FOR EACH OF THE FIVE
ENVIRONMENTAL FORCES (SOCIAL, ECONOMIC,
TECHNOLOGICAL, COMPETITIVE, AND REGULATORY),
IDENTIFY TRENDS LIKELY TO INFLUENCE GEEK SQUAD IN
THE NEAR FUTURE.
D.QUESTION 4: WHAT PROMOTIONAL ACTIVITIES WOULD
YOU RECOMMEND TO ENCOURAGE CONSUMERS WHO
CURRENTLY USE INDEPENDENT INSTALLERS TO SWITCH TO
GEEK SQUAD?
CONCLUSION
REFERENCES

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INTRODUCTION
In recent years, the rapid development of technology has
created a lot of technological products. But that also makes it
difficult for everyone to keep up with changes in technology
especially computers, software, and technology. The rapid
evolution of technology is creating not only opportunities but
challenges as well. Robert Stephens once said, “ As long as
there is innovation there is going to be new kinds of chaos”.
Indeed, it will be harder for everyone as more and more new
technology products are created. Consumers will find it difficult
to operate and install the products. And it may take time to
read the user manuals. So Robert Stephens founded Geek
Squad in 1994 to help the consumers who find it difficult or
could not understand to use technology. Geek Squad Agents
were identified by their badges, black slacks, white shirts,
break-away ties, and trademark GeekMobilesTM, which were all
humorous and irreverent. The famous orange, black, and white
Geek Squad logo became a well-known emblem of tech
assistance in the areas it serviced in a short period. Agents
drove black and white Volkswagen Beetles, dubbed
Geekmobiles, with a logo on the door and charged
predetermined charges for services, regardless of how long
they took to complete. With this strategy, Geek Squad became
a huge success. And in 2002, Best Buy, a large consumer
electronics store, paid $3 million for Geek Squad. In 2004,

Geek Squad was launched across the United States and
Canada, ultimately extending beyond its computer-related roots
to provide assistance with anything from appliance repairs to
the vehicle, home theater, and smart home installs.
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QUESTION 1
WHAT ARE THE KEY ENVIRONMENTAL
FORCES THAT CREATED AN OPPORTUNITY
FOR ROBERT STEPHENS TO START THE GEEK
SQUAD?
There are key factors that created an opportunity for Robert
Stephens to start Geek Squad: changes in technology and
inadequate consumer skills. Despite the fact that he is a
software engineer, he began his career repairing and installing
televisions and computers. Meanwhile, he met a lot of

individuals who acquire technological equipment, but only a
handful of them utilize them effectively. His experiences as a
consultant led him to realize that most people needed help with
technology. The rapid development of technology products such
as computers, software, technology, communication, and
entertainment began changing quickly and very complicated.
Robert Stephens once said, “ As long as there is innovation
there is going to be a new kind of chaos”. Indeed, that caused
problems for consumers to install, operate, and use many of
the electronic products available today. Besides, they do not
want to spend time reading or could not understand the user
manuals. I believe that the majority of consumers are unable to
set up things purchased in stores, and this provided Robert with
a fantastic chance.

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QUESTION 2
WHAT CHANGES IN THE PURCHASING
PATTERNS OF (A) ALL CONSUMERS AND (B)
WOMEN MADE THE ACQUISITION OF GEEK
SQUAD PARTICULARLY IMPORTANT FOR
BEST BUY

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a. All consumers
The purchasing patterns change as new and more complicated
technology products became available. First, consumers would
be excited about and purchase products that they could install
and operate. Best Buy had observed very high return rates for
most of its complex products because the consumers can not
make them work. Second, consumers begin to see service as a
critical element of the purchase, many of them needed help
with viruses, spyware, lost data, and crashed or inoperable
computers. They also care about types of maintenance such as
password management, operating system updates. A decrease
of return rates by 25%-35% of their products

b. Women
In the past, many electronic manufacturers and retailers
primarily focused on men. Women’s purchasing patterns also
changed as they become more and more interested in personal
computing and home entertainment. Women expected
personal service and installation after the purchase. Consumer
Electronics Association expected this trend to continue and

predict that expenditures by women will exceed expenditures
by men in the near future. They also demand personalized
treatment during the purchasing process and beyond. As a
result, the Geek Squad was critical for Best Buy in delivering
the services that customers sought and deserved.

QUESTION 3
BASED ON THE CASE INFORMATION AND
WHAT YOU KNOW ABOUT CONSUMER
ELECTRONICS, CONDUCT AN ENVIRONMENT
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SCAN FOR GEEK SQUAD TO IDENTIFY KEY
TRENDS. FOR EACH OF THE FIVE
ENVIRONMENTAL FORCES ( SOCIAL,
ECONOMICS, TECHNOLOGICAL,
COMPETITIVE, AND REGULATORY), IDENTIFY
TRENDS LIKELY TO INFLUENCE GEEK SQUAD
IN THE NEAR FUTURE
There are so many trends likely to influence Geek Squad in the
near future. The first thing to manipulate the Geek Squad is
social. Trends show that women will outspend men due to an
increase in interest in electronic products. From internet access

to internet speeds, the customer is the one driving technology
to go forward in every aspect of their lives. When there are so
many consumers who purchase the electronics products out
there, excellent customer service is becoming increasingly in
demand. This is a good thing for the Geek Squad since when a
computer breaks down or becomes contaminated with a virus,
it needs to be fixed right away. We are more open to trying new
things and having new experiences, including with technology.
The more individuals who explore technology, the more people
will require assistance with it.

Of course, economic forces will have an impact on Geek Squad,
as they would on all other enterprises. It makes no difference
how wonderful service is if people cannot afford to utilize it.
Nowadays, Computers, communication, and entertainment
technologies account for a growing amount of discretionary
spending. Certain microeconomic developments, such as a
growth in female consumer spending and a decrease in the cost
of electrical items, should have a beneficial impact on the Geek
Squad.

In the near future, technological factors will most likely have
the greatest impact on Geek Squad. Everyone’s lives have
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gotten intertwined with the internet. The more technology
products are launched, the more complex most electronics
products are. There are rapid changes in the electronic product
features, standards, and capabilities.

Businesses are challenged to be on top of their game when it
comes to addressing customer expectations by competitive
pressures. Consumers are eager to turn elsewhere if their
requirements are not addressed. More and more channels are
springing up such as discount stores, online stores. And also a
growing range of technical support services are available such
as Walmart and Office Depot’s Tech Depot. To set themselves
apart from the competition, the competition provides new ideas
and upgrades to their service.

Any firm or organization's marketing and larger business
decisions are influenced by regulatory factors. Regulation is a
set of rules that businesses must follow in order to protect
themselves and their customers, as well as to maintain fair
business practices. The regulatory environment for intellectual
items like movies, music, and software is always changing.
Geek Squad is responsible for keeping track of these
developments and ensuring that its services comply with
current legislation.

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QUESTION 4
WHAT PROMOTIONAL ACTIVITIES WOULD
YOU RECOMMEND TO ENCOURAGE
CONSUMERS WHO CURRENTLY USE
INDEPENDENT INSTALLERS TO SWITCH TO
GEEK SQUAD ?
Geek Squad has had tremendous success, but there are still
opportunities for them to expand as a business and entice new
customers to use their services. To do that, the company needs
to expand its business market, then more and more people will
become aware of the company. It expands market coverage by
attracting new clients to the brand. In addition, the company
should also use social networking using social media to raise
public awareness such as Facebook, Twitter. Nowadays, social
networking is very developed so it is not difficult for people to
see the advertisements appearing on their newsfeed, Discounts
and promotions should also be promoted to the followers. They
should also put ads on the online marketing campaign like
Youtube because every day millions of people watch videos so
the company’s ads are very easy to see. Therefore, the
percentage of customers who want to use Geek squad's
services will increase significantly. Besides, the company
should also offer advertising contracts for celebrities. As
everyone knows, celebrities have great influence globally, if

fans know their idol has a Geek Squad advertising contract,
they will consider using the company's services to support their
idols.

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CONCLUSION
It can be said that today's technological equipment industry is
growing, leading to the essential needs of customers. And there
are also many electronic products that have been launched on
the market. That also makes it difficult for buyers to install and
use technological equipment. So Geek Squad plays an
important role in providing diagnoses issues in and repairs all
consumer electronics, as well as appliances. Geek Squad has
adequate resources to continue operations. The firm has
created a large base of consumers and can generate bigger
profits thanks to its presence in the United States, the United
Kingdom, and other regions.

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REFERENCES
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