Video Case: The Geek Squad to the Rescue!

Video Running Time: 13:17

Organization Discussed: The Geek Squad

Concepts Spotlighted in Video:

• Innovation
• Entrepreneurship
• Creativity
• Service Marketing
• Quality
• Teamwork
• Vision
• Training
• Pricing
• Customer Satisfaction

Video Case Synopsis

Who would have predicted that one day being a geek would be considered cool, much less heroic? Of course, heroic geekdom does have a few icons? Clark Kent, for one. But most people conjure up images of the Man of Steel ? not the mild-mannered reporter? when they think about Clark Kent”s fantastic deeds as Superman.

Entrepreneur Robert Stephens doesn”t mind this perception. He also doesn”t mind being called a geek, although he readily admits that he strives harder to emulate his own hero, James Bond, than he does Bill Gates, who transformed the world of computers with his company, Microsoft. But since Stephens does own a computer company? of sorts? he admits to his admiration to the geekish Gates as having made everything easier for us.

Stephens is the epitome of an entrepreneur? so much so that associates joke that their dictionary definition of entrepreneur would read: Robert Stephens. A decade ago, he recognized an opportunity ? a gap in the technical service provided by computer companies for individuals and small businesses? and made a business out of filling it. No one wanted to make house calls [to repair people”s computers], he recalls. But Stephens was willing to be on call 24/7 to drive to the homes or offices of people who ran small businesses, to diagnose any problems with their computers, fix the problem on the spot, and even upgrade their computers on request. It was a simple business idea, designed to take advantage of an opportunity. Stephens also had the vision to realize that the Internet, even though at the time in its infancy in commercial applications, would have a huge impact on the way companies conducted their business by allowing people to work from home. And computers had begun popping up in homes for personal use and entertainment. So Stephens quit his computer programming job at the University of Minnesota and launched his computer-repair business with an initial investment of $200.

Stephens didn”t have much money. He also didn”t have any employees. But he was blessed with liberal amounts of creativity, intelligence, humor, and energy. He thought hard about what to call his company, wanting the name to make a lasting impression on potential customers. Finally, he came up with The Geek Squad because he wanted to imply that he had a whole army of employees who could solve any computer-based trouble at a moment”s notice. The name is very important because it”s what people think, say, and remember, Stephens explains.

When his customer base began to grow beyond his own service capabilities, he added his first employee, and then a few more. To support his company image, he designed badges identifying each employee as a member of The Geek Squad intelligence network. He also designed uniforms for each serviceperson and provided a company car: a specially painted Volkswagen Beetle Geekmobile. Customers loved it? and so did The Geek Squad members.

For the most part, The Geek Squad serves customers operating home-based and other small businesses ? ordinary people, such as lawyers who need fast repairs to their office computers. But sometimes glamour comes calling in the form of customers like U2 and the Rolling Stones. A few years ago, Geek Squad headquarters received an emergency call from U2″s sound crew, who had encountered a host of computer problems in setting up the sound system for an Anaheim concert. They did such a bang-up job that the band called them in again during an appearance in Minneapolis.

Why did Stephens choose the entrepreneurial route for his career path? I didn”t want a boring job. I wanted to work for an international spy organization, and this is the closest I can get. He identified an important trend in the marketplace and built a business around it. His business model is based on his philosophy that he”d rather be great at one thing than be mediocre at 15 things. The Geek Squad has progressed from a sole proprietorship begun in Minneapolis to a corporation with sizable offices in Chicago, Los Angeles, and San Francisco, as well as the Twin Cities. His intelligence network of service reps now numbers more than 50, and annual revenues have grown to several million dollars. His employees have job titles like Dr. No (the company”s finance director) and Counter Intelligence (inside service representatives). He loves every minute of being a professional geek, even if he never did get his shot at being an international spy.

Questions for Critical Thinking

1. Stephens identified two important trends in the environment ? the need for on-site computer service and the growth of the Internet? that helped him predict his business would be a success. Identify at least one other factor in the environment that could be considered positive for The Geek Squad.

2. In what ways has Stephens and other entrepreneurs like him influenced the economy?

3. Describe some of the personal characteristics that probably contribute to Stephens”s success.

4. Why was The Geek Squad a good business idea?

Experiential Exercise

How had The Geek Squad expanded since it began in 1994? What is the extent of its services? Go tohttp://www.geeksquad.com/about/default.aspx

and find out. Then suggest plans for the future for this company. How could The Geek Squad expand in the future? Report your findings to the class.