Intuit Case Study
Five forces analysis:
Threat of new entrants:
As per current scenario the threat of new entrants is minimal in this market. There are obvious reasons for the same. The positive word of mouth and exceptional customer service has helped Intuit to create a powerful brand image and are customer loyalty. Intuit can be stated as one of the perfect example for creating, communicating and delivering. Hence, building a barrier for new entrants. It spends approximately 20% of net revenues on consumer research annually which is required for sustainability and growth in this technologically competitive world. So, the new companies would require huge capital to enter. Profitability in this industry is seasonal which is mainly focussed during the period of tax preparation (November through April).
This could be a probable threat for new entrants.
buyer power (Bargaining power of customers): Bargaining power of customers would be significant when the customers have many alternatives. I would rather predict there could be fair buyer power but not very strong as Intuit established customer loyalty and there are not many strong competitors. However information based products are often prone to buyer power due to technology shift or alternatives.
Supplier Power:
Information based products hardly requires suppliers. There is very less supplier’s bargaining power. This stands same for hardware requirements in software development as there are many suppliers.
The Essay on Local Branch Customer Product Supplier
Overview. The process is designed to handle the interaction with customers and suppliers, and also deals with stock control. Invoice and payment data is recorded. For clarity I have noted down the following: o Head Office consists of - Product Management Finance Sales A Local Branch consists of - A Local Office Warehouse Distribution Preliminary List of Entities. In my top-down analysis of the ...
Threat of substitutes:
Software industry is often prone to threat of substitutes. Change in customer needs and technology shift may lead to evolution of new products which can be substitute to earlier ones with more ease affordable. However Intuit’s customer engagement and congruousness with new technologies has created a barrier for any kind of substitutes.
Competitive rivalry:
Intuit is the strongest competitor for any other company in this industry. It has been proved that Intuit holds a strong position in market after Microsoft discontinued its Money product line. However there are few companies which hold a small market share which maintains a competitive environment.
