A product concept for Geico Company-work sample MLA

 

 

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A product concept for Geico Company

Lillian and Leo Goodwin established Geico in 1936. Sixty years later, it became a subsidiary of Berkshire Hathaway (Geico par. 3). The product concept focuses Geico insurance company’s health policies. The company offers health products including medical, dental, and visional policies (Geico par. 1). However, it does not offer medical policies to retirees past the age of sixty-five (Geico par. 2).

THE SWOT ANALYSIS

Strengths (Internal Analysis). The company has built trust in its clients for more than 70 years (Geico par. 5). The company has already positioned its brand in the market. It also operates a website where customers can have unlimited access the services. The company’s investor (Berkshire Hathaway) has a large pool of funds that would help it start and run new projects.

Weaknesses (Internal analysis). The clients have little awareness of company’s agent office locations. The company has also limited their insurance adverts mainly to car insurance products. Most of its services do not show any unique features compared to the products in the market. There has been a negative publicity to their marketing approach, where the audience has perceived their adverts as immature.

Opportunities (External analysis). Insurance companies are adamant to give medical insurance covers since the product record losses for most of them. The cover is expensive for consumers, making them reluctant to take them up.

The government intervened the situation by forming the Obama Care policy, which made it almost compulsory to get a health insurance cover, by taxing the uncovered US citizens. Obama Health Care is likely to cost $1.3 trillion the taxpayers. The government intervention plans showed that it would be willing to support ideas that made medical insurance sustainable to the citizens.

Threats (External analysis). Wrong diagnosis and drug prescribing errors were common mistakes by medical officers. Prescribing errors were either mechanical; like dispensing wrong drugs and wrong dosage or judgmental like improper counseling. Research showed that 21.3% of the patients aged more than sixty-five years were using at least a drug under inappropriately prescription (Worst Pills par. 2). U.S hospitals data showed that 11-17% of medical errors resulted from wrong dispensations. An estimated result of adverse drug events is 750,000 deaths and injuries on an annual basis (US Pharmacist par. 14).

Poor diagnosis and wrong prescriptions also had a high economic risk. The 750,000 deaths and injuries resulted in $5.6 million in excess to hospitals. Patients under the adverse drug events ended up getting longer hospitalization by 8 – 12 days that resulted in $16,000 – $24,000 cost implication for a patient.

THE PRODUCT CONCEPT

The Geico medical insurance product can improve the product by formulating a Medicare monetary system specifically, an online monetary portal for the prospective clients. The portal will show the health record of the client. Once a patient visits the medical center, the medical practitioners will record patient’s symptoms, tests they carry out, and the prescription or any other recommendations they give to the client. The system will hold the medical practitioners accountable for their diagnosis. The medical centers would compensate the client for any wrong prescription or diagnosis. The portal will also give options where the doctors can refer a patient in case problem requires more specialized attention than they can offer. The portal will also rate the medical centers depending on the other clients’ health records and feedback.

Adding the feature will reduce the medical compensation cost, which would have resulted from professional negligence, hence reducing the overall cost of the covers.

The health records on the online feature will also create an avenue for an individualized appraisal and not the current generalized appraisal for issuing medical covers.

Work cited

Geico. Frequently Asked Questions, 2014. Web 7 Oct 2014 <https://www.geico.com/associates/retirees/faq/>.

Geico. GEICO at a Glance,  2014. Web. 7 Oct 2014 <https://www.geico.com/about/corporate/at-a-glance/>.

Geico. Health and Well being, 2014. Web. 7 Oct 2014. <http://careers.geico.com/about-geico/total-rewards-program/health-and-well-being/>.

US Pharmacist. Types and Frequency of Errors, 2008. Web 7 Oct 2014. <http://www.uspharmacist.com/continuing_education/ceviewtest/lessonid/105916/>

Worst Pills. n.d. Misprescribing and Overprescribing of Drugs, n.d. web 7 Oct 2014. <http://www.worstpills.org/public/page.cfm?op_id=3>.

 

 

 

 

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