Intuit
NAME: Xingchen Wang
STUDENT ID: 26225107
Case study
Intuit
Five forces analysis for Intuit
1. Industry competitors
Threat of intense segment rivalry: According to the information that from this article, Microsoft should be the both biggest and powerful competitor for the Intuit before 2009, when the Intuit already maintain 70% of the market share, Microsoft still want to pay for 2 billion dollars to purchase this company in 1995. However, Microsoft announced that they give up their money product line in 2009. It is seems that Intuit would be the greatest company in this area. But Intuit get its own weakness that they are facing a lot of challenge in mobile devices, which need them to improve. 2.Potential entrants
Threat of new entrants: By 1995, the company already held 70% of the market share, but they still spend a lot of money and work on how to improve their services and products. Like Lab Study, Remote Study, Site visit, which help them to better understand of the needs of their customers. The positive of mouth and good customer service become their best marketing tools. Although they may have some difficulties in growth areas like solutions for mobile devices, some company may better in these areas, but it is really difficult for a new company to compete in this industry. Even Microsoft gave up to compete with Intuit in this area.
3. Substitutes
Threat of substitute products:
The products of Intuit are aim to solve complicated accounting, finance and tax problems in small business, which means these companies do not have enough money to hire professional accountant. Comparing to spend a lot of money on salaries for accountants, financial and tax solution software should be better choices for companies. What’s more, Intuit already become the most successful company in this area, for their good marketing campaigns and revolutionary products, there are not many threat of substitute products for them.
4. Buyers
Threat of buyers’ growing
STUDENT ID: 26225107
Case study
Intuit
Five forces analysis for Intuit
1. Industry competitors
Threat of intense segment rivalry: According to the information that from this article, Microsoft should be the both biggest and powerful competitor for the Intuit before 2009, when the Intuit already maintain 70% of the market share, Microsoft still want to pay for 2 billion dollars to purchase this company in 1995. However, Microsoft announced that they give up their money product line in 2009. It is seems that Intuit would be the greatest company in this area. But Intuit get its own weakness that they are facing a lot of challenge in mobile devices, which need them to improve. 2.Potential entrants
Threat of new entrants: By 1995, the company already held 70% of the market share, but they still spend a lot of money and work on how to improve their services and products. Like Lab Study, Remote Study, Site visit, which help them to better understand of the needs of their customers. The positive of mouth and good customer service become their best marketing tools. Although they may have some difficulties in growth areas like solutions for mobile devices, some company may better in these areas, but it is really difficult for a new company to compete in this industry. Even Microsoft gave up to compete with Intuit in this area.
3. Substitutes
Threat of substitute products:
The products of Intuit are aim to solve complicated accounting, finance and tax problems in small business, which means these companies do not have enough money to hire professional accountant. Comparing to spend a lot of money on salaries for accountants, financial and tax solution software should be better choices for companies. What’s more, Intuit already become the most successful company in this area, for their good marketing campaigns and revolutionary products, there are not many threat of substitute products for them.
4. Buyers
Threat of buyers’ growing