Case study Week 4
Intuit company is an American software company that develops financial and tax preparation software and related services for small business, accountants and individuals. And this essay will use poter’s five forces to analysis the Intuit company and understand its strength of your current competitive position, and the strength of a position you are consider moving into.
First of all, the porter’s five forces analysis consist of : Industry, buyer power, supplier power, potential entrants and substitutes.
The Intuit company provides financial and tax prepareation software to individuals and companies. It has seveal products to satisfy different customers needs and wants. To more specific, Intuit has Quicken,Quickbooks and Turbo Tax to its different target market. And Intuit has achieve over half of the total market share. Moreover, the Microsoft announces to quit the money products market, it means the Intuit has great strength in that area.
The buyer of Intuit is indivduals and small and medium companys aim to solve their financial and taxation issues. Because Intuit’s products provide great experiences to its custmers so the buyer power is less powerful. The buyer prefer to use Intuit’s products rather than other companies.
All Intuit’s products are designed by its own. They have researched their customers needs and demands and continue to imporve their products’s quality to match the customers needs and demands in new environment.
The Global Product Company concept means ”to concentrate manufacturing – and ultimately other activities – wherever in the world it could be carried out to GE’s exacting standards most cost-effectively”. That means that the production is moving to countries where people are mostly underutilized (the example given in the case study tells about engineers from Eastern Europe, who cost only $1,5/h). ...
Due to high market share of Intuit company has achieved, and Intuit has huge loylaty customers, it seems hard for other company to entry. Intuit aims to provides a simple and easy to use manner for its customers. Intuit has good understanding about its target customer through market research. Moreover, Microsoft announced to quit the money product market shows Intuit has high competitive advantage to other companies.
Due to microsoft, the main competitor of Intuit company has announced to quit the market, it means the consumers hardly to find an suitable software as a substitutes. Therefore, it’s a great opportunties for Intuit to expand its market shares.
How Intuit to entry in a potential market
Due to high market share for Intuit company has achieved in US, so internationalization is a good chocie for Intuit. The needs in financial and tax management is a common issue in other developed countries, people has huge potential demands on how to manage their financial problems. This offer a great opportunty to Intuit to introduce its products to those countries.
Therefore, Intuit should make several decisions in international marketing: deciding which country to entry, deciding which market to entry, deciding how to entry the market, deciding on the marketing program and deciding on the marketing organisation.
Intuit has huge competitive advantage on financial and tax management software, so it should more focus on how to get the market share in new entry country. And Intuit should introduce its products to those new customers. And Intuit can set a sales branch or new subsidiary to operate its business in new entry market. Intuit need to set a suitable marketing strategy to introduce its products and to attact its target customers. Intuit can collect useful information through marketing research to design a market strategy to match the local customers needs and wants.
Research is the process of gathering, processing and analyzing information on markets. The scope of such research is limited to the study of markets and does not include studies on the brand or product to be marketed. Market research is a subset of marketing research. Marketing Research is the process of gathering, processing and analyzing information for the purpose of marketing a product. It ...
Moreover, Intuit has acquisition many companies to satisfy its diversification. Therefore, another potential market for Intuit to entry is solution provider for mobile devices. Due to Intuit has absorb Web Site Mint. Com , so Intuit has better understanding about mobile device market. And it can use its outstanding resource and marketing research to understanding its target customers needs and demands, to design suitable products to satisfy the customers.