Intuit knows that good accounting takes more than a pocket calculator. The company is a leading developer of software used to manage personal finances (Quicken), small business accounting (QuickBooks), and consumer tax preparation (TurboTax).
Threat of substitute products
The main service that will be easily replace is that:
Financial Management Solutions - brings bookkeeping capabilities and business management tools to small and medium-sized business users in an easy-to-use design that does not require them to be familiar with debit and credit accounting. The company's desktop software products include QuickBooks Simple Start, which provides accounting functionality suitable for very small, less complex businesses and is offered in both free and paid versions. *
Employee Management Solutions - QuickBooks Payroll is a family of products sold on a subscription basis to small businesses that use QuickBooks and prepare their own payroll or want some assistance with preparing their payroll. It is also sold to accountants who use QuickBooks and help their clients manage their payrolls.
Threat of new entrants to a market
By reframing the small business market, Intuit has embarked on a new strategy of more targeted ‘right for my business’ products and services, instead of a one-size-fits-all approach.
Degree of competitive rivalry
Online, TurboTax is facing increasing pressure from Tax Cut, as well as ad-supported Tax ACT and other low-cost competitors. TurboTax also competes indirectly with traditional tax preparation services, such as H&R Block (HRB), Jackson-Hewitt, CPAs, and local mom-and-pop accounting services. Traditional services still account for the majority of tax returns filed, despite the cost advantage of TurboTax and other DIY methods. QuickBooks is also dominant in its field, where its only real competition is Peachtree Software. Microsoft was expected to pose a threat, with its Small Business Accounting software...
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