Intuit QuickBooks: From Product to Platform SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Strategy & Execution
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Intuit QuickBooks: From Product to Platform
This case focuses on the challenges and opportunities faced by a successful incumbent organization attempting to transform a large portion of its business from a traditionally product-centric operating mode to a platform-based one that leverages network effects to create durable competitive advantage. Strategic questions include the extent to which the organization should invest in platform initiatives, the appropriate resource allocation among various product and platform offerings, and the most beneficial business model for each of a few candidate multi-sided platform initiatives.
Swot Analysis of "Intuit QuickBooks: From Product to Platform" written by Andrei Hagiu, Elizabeth J. Altman includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Platform Quickbooks facing as an external strategic factors. Some of the topics covered in Intuit QuickBooks: From Product to Platform case study are - Strategic Management Strategies, Change management, Economics, IT, Marketing and Strategy & Execution.
Some of the macro environment factors that can be used to understand the Intuit QuickBooks: From Product to Platform casestudy better are - – increasing government debt because of Covid-19 spendings, cloud computing is disrupting traditional business models, talent flight as more people leaving formal jobs, increasing commodity prices, technology disruption, increasing inequality as vast percentage of new income is going to the top 1%, banking and financial system is disrupted by Bitcoin and other crypto currencies,
wage bills are increasing, challanges to central banks by blockchain based private currencies, etc
Introduction to SWOT Analysis of Intuit QuickBooks: From Product to Platform
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Intuit QuickBooks: From Product to Platform case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Platform Quickbooks, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Platform Quickbooks operates in.
According to Harvard Business Review, 75% of the managers use SWOT analysis for various purposes such as – evaluating current scenario, strategic planning, new venture feasibility, personal growth goals, new market entry, Go To market strategies, portfolio management and strategic trade-off assessment, organizational restructuring, etc.
SWOT Objectives / Importance of SWOT Analysis and SWOT Matrix
SWOT analysis of Intuit QuickBooks: From Product to Platform can be done for the following purposes –
1. Strategic planning using facts provided in Intuit QuickBooks: From Product to Platform case study
2. Improving business portfolio management of Platform Quickbooks
3. Assessing feasibility of the new initiative in Strategy & Execution field.
4. Making a Strategy & Execution topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Platform Quickbooks
Strengths Intuit QuickBooks: From Product to Platform | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Platform Quickbooks in Intuit QuickBooks: From Product to Platform Harvard Business Review case study are -
Innovation driven organization
– Platform Quickbooks is one of the most innovative firm in sector. Manager in Intuit QuickBooks: From Product to Platform Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Operational resilience
– The operational resilience strategy in the Intuit QuickBooks: From Product to Platform Harvard Business Review case study comprises – understanding the underlying the factors in the industry, building diversified operations across different geographies so that disruption in one part of the world doesn’t impact the overall performance of the firm, and integrating the various business operations and processes through its digital transformation drive.
Superior customer experience
– The customer experience strategy of Platform Quickbooks in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Analytics focus
– Platform Quickbooks is putting a lot of focus on utilizing the power of analytics in business decision making. This has put it among the leading players in the industry. The technology infrastructure suggested by Andrei Hagiu, Elizabeth J. Altman can also help it to harness the power of analytics for – marketing optimization, demand forecasting, customer relationship management, inventory management, information sharing across the value chain etc.
Highly skilled collaborators
– Platform Quickbooks has highly efficient outsourcing and offshoring strategy. It has resulted in greater operational flexibility and bringing down the costs in highly price sensitive segment. Secondly the value chain collaborators of the firm in Intuit QuickBooks: From Product to Platform HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Learning organization
- Platform Quickbooks is a learning organization. It has inculcated three key characters of learning organization in its processes and operations – exploration, creativity, and expansiveness. The work place at Platform Quickbooks is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Intuit QuickBooks: From Product to Platform Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Digital Transformation in Strategy & Execution segment
- digital transformation varies from industry to industry. For Platform Quickbooks digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Platform Quickbooks has successfully integrated the four key components of digital transformation – digital integration in processes, digital integration in marketing and customer relationship management, digital integration into the value chain, and using technology to explore new products and market opportunities.
Sustainable margins compare to other players in Strategy & Execution industry
– Intuit QuickBooks: From Product to Platform firm has clearly differentiated products in the market place. This has enabled Platform Quickbooks to fetch slight price premium compare to the competitors in the Strategy & Execution industry. The sustainable margins have also helped Platform Quickbooks to invest into research and development (R&D) and innovation.
Low bargaining power of suppliers
– Suppliers of Platform Quickbooks in the sector have low bargaining power. Intuit QuickBooks: From Product to Platform has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Platform Quickbooks to manage not only supply disruptions but also source products at highly competitive prices.
Cross disciplinary teams
– Horizontal connected teams at the Platform Quickbooks are driving operational speed, building greater agility, and keeping the organization nimble to compete with new competitors. It helps are organization to ideate new ideas, and execute them swiftly in the marketplace.
High brand equity
– Platform Quickbooks has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Platform Quickbooks to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Strong track record of project management
– Platform Quickbooks is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Weaknesses Intuit QuickBooks: From Product to Platform | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Intuit QuickBooks: From Product to Platform are -
Slow decision making process
– As mentioned earlier in the report, Platform Quickbooks has a very deliberative decision making approach. This approach has resulted in prudent decisions, but it has also resulted in missing opportunities in the industry over the last five years. Platform Quickbooks even though has strong showing on digital transformation primary two stages, it has struggled to capitalize the power of digital transformation in marketing efforts and new venture efforts.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Intuit QuickBooks: From Product to Platform, in the dynamic environment Platform Quickbooks has struggled to respond to the nimble upstart competition. Platform Quickbooks has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
No frontier risks strategy
– After analyzing the HBR case study Intuit QuickBooks: From Product to Platform, it seems that company is thinking about the frontier risks that can impact Strategy & Execution strategy. But it has very little resources allocation to manage the risks emerging from events such as natural disasters, climate change, melting of permafrost, tacking the rise of artificial intelligence, opportunities and threats emerging from commercialization of space etc.
High cash cycle compare to competitors
Platform Quickbooks has a high cash cycle compare to other players in the industry. It needs to shorten the cash cycle by 12% to be more competitive in the marketplace, reduce inventory costs, and be more profitable.
Lack of clear differentiation of Platform Quickbooks products
– To increase the profitability and margins on the products, Platform Quickbooks needs to provide more differentiated products than what it is currently offering in the marketplace.
Skills based hiring
– The stress on hiring functional specialists at Platform Quickbooks has created an environment where the organization is dominated by functional specialists rather than management generalist. This has resulted into product oriented approach rather than marketing oriented approach or consumers oriented approach.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Platform Quickbooks is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Intuit QuickBooks: From Product to Platform can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Products dominated business model
– Even though Platform Quickbooks has some of the most successful products in the industry, this business model has made each new product launch extremely critical for continuous financial growth of the organization. firm in the HBR case study - Intuit QuickBooks: From Product to Platform should strive to include more intangible value offerings along with its core products and services.
Low market penetration in new markets
– Outside its home market of Platform Quickbooks, firm in the HBR case study Intuit QuickBooks: From Product to Platform needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
High dependence on existing supply chain
– The disruption in the global supply chains because of the Covid-19 pandemic and blockage of the Suez Canal illustrated the fragile nature of Platform Quickbooks supply chain. Even after few cautionary changes mentioned in the HBR case study - Intuit QuickBooks: From Product to Platform, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Platform Quickbooks vulnerable to further global disruptions in South East Asia.
Aligning sales with marketing
– It come across in the case study Intuit QuickBooks: From Product to Platform that the firm needs to have more collaboration between its sales team and marketing team. Sales professionals in the industry have deep experience in developing customer relationships. Marketing department in the case Intuit QuickBooks: From Product to Platform can leverage the sales team experience to cultivate customer relationships as Platform Quickbooks is planning to shift buying processes online.
Opportunities Intuit QuickBooks: From Product to Platform | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities highlighted in the Harvard Business Review case study Intuit QuickBooks: From Product to Platform are -
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Platform Quickbooks to expand its talent hiring zone. According to McKinsey Global Institute, 20% of the high end workforce in fields such as finance, information technology, can continously work from remote local post Covid-19. This presents a really great opportunity for Platform Quickbooks to hire the very best people irrespective of their geographical location.
Loyalty marketing
– Platform Quickbooks has focused on building a highly responsive customer relationship management platform. This platform is built on in-house data and driven by analytics and artificial intelligence. The customer analytics can help the organization to fine tune its loyalty marketing efforts, increase the wallet share of the organization, reduce wastage on mainstream advertising spending, build better pricing strategies using personalization, etc.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Platform Quickbooks can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Strategy & Execution industry, but it has also influenced the consumer preferences. Platform Quickbooks can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Learning at scale
– Online learning technologies has now opened space for Platform Quickbooks to conduct training and development for its employees across the world. This will result in not only reducing the cost of training but also help employees in different part of the world to integrate with the headquarter work culture, ethos, and standards.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Platform Quickbooks can build a diversified supply chain model across various countries in - South East Asia, India, and other parts of the world. This reconfiguration of global supply chain can help, as suggested in case study, Intuit QuickBooks: From Product to Platform, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Leveraging digital technologies
– Platform Quickbooks can leverage digital technologies such as artificial intelligence and machine learning to automate the production process, customer analytics to get better insights into consumer behavior, realtime digital dashboards to get better sales tracking, logistics and transportation, product tracking, etc.
Low interest rates
– Even though inflation is raising its head in most developed economies, Platform Quickbooks can still utilize the low interest rates to borrow money for capital investment. Secondly it can also use the increase of government spending in infrastructure projects to get new business.
Use of Bitcoin and other crypto currencies for transactions
– The popularity of Bitcoin and other crypto currencies as asset class and medium of transaction has opened new opportunities for Platform Quickbooks in the consumer business. Now Platform Quickbooks can target international markets with far fewer capital restrictions requirements than the existing system.
Manufacturing automation
– Platform Quickbooks can use the latest technology developments to improve its manufacturing and designing process in Strategy & Execution segment. It can use CAD and 3D printing to build a quick prototype and pilot testing products. It can leverage automation using machine learning and artificial intelligence to do faster production at lowers costs, and it can leverage the growth in satellite and tracking technologies to improve inventory management, transportation, and shipping.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Platform Quickbooks in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Strategy & Execution segment, and it will provide faster access to the consumers.
Better consumer reach
– The expansion of the 5G network will help Platform Quickbooks to increase its market reach. Platform Quickbooks will be able to reach out to new customers. Secondly 5G will also provide technology framework to build new tools and products that can help more immersive consumer experience and faster consumer journey.
Developing new processes and practices
– Platform Quickbooks can develop new processes and procedures in Strategy & Execution industry using technology such as automation using artificial intelligence, real time transportation and products tracking, 3D modeling for concept development and new products pilot testing etc.
Threats Intuit QuickBooks: From Product to Platform External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Intuit QuickBooks: From Product to Platform are -
Technology disruption because of hacks, piracy etc
– The colonial pipeline illustrated, how vulnerable modern organization are to international hackers, miscreants, and disruptors. The cyber security interruption, data leaks, etc can seriously jeopardize the future growth of the organization.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Platform Quickbooks with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
High dependence on third party suppliers
– Platform Quickbooks high dependence on third party suppliers can disrupt its processes and delivery mechanism. For example -the current troubles of car makers because of chip shortage is because the chip companies started producing chips for electronic companies rather than car manufacturers.
Increasing wage structure of Platform Quickbooks
– Post Covid-19 there is a sharp increase in the wages especially in the jobs that require interaction with people. The increasing wages can put downward pressure on the margins of Platform Quickbooks.
Technology acceleration in Forth Industrial Revolution
– Platform Quickbooks has witnessed rapid integration of technology during Covid-19 in the Strategy & Execution industry. As one of the leading players in the industry, Platform Quickbooks needs to keep up with the evolution of technology in the Strategy & Execution sector. According to Mckinsey study top managers believe that the adoption of technology in operations, communications is 20-25 times faster than what they planned in the beginning of 2019.
Backlash against dominant players
– US Congress and other legislative arms of the government are getting tough on big business especially technology companies. The digital arm of Platform Quickbooks business can come under increasing regulations regarding data privacy, data security, etc.
Instability in the European markets
– European Union markets are facing three big challenges post Covid – expanded balance sheets, Brexit related business disruption, and aggressive Russia looking to distract the existing security mechanism. Platform Quickbooks will face different problems in different parts of Europe. For example it will face inflationary pressures in UK, France, and Germany, balance sheet expansion and demand challenges in Southern European countries, and geopolitical instability in the Eastern Europe.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Intuit QuickBooks: From Product to Platform, Platform Quickbooks may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Strategy & Execution .
Shortening product life cycle
– it is one of the major threat that Platform Quickbooks is facing in Strategy & Execution sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Capital market disruption
– During the Covid-19, Dow Jones has touched record high. The valuations of a number of companies are way beyond their existing business model potential. This can lead to capital market correction which can put a number of suppliers, collaborators, value chain partners in great financial difficulty. It will directly impact the business of Platform Quickbooks.
Consumer confidence and its impact on Platform Quickbooks demand
– There is a high probability of declining consumer confidence, given – high inflammation rate, rise of gig economy, lower job stability, increasing cost of living, higher interest rates, and aging demography. All the factors contribute to people saving higher rate of their income, resulting in lower consumer demand in the industry and other sectors.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Platform Quickbooks in the Strategy & Execution industry. The Strategy & Execution industry is already at various protected from local competition in China, with the rise of trade war the protection levels may go up. This presents a clear threat of current business model in Chinese market.
High level of anxiety and lack of motivation
– the Great Resignation in United States is the sign of broader dissatisfaction among the workforce in United States. Platform Quickbooks needs to understand the core reasons impacting the Strategy & Execution industry. This will help it in building a better workplace.
Weighted SWOT Analysis of Intuit QuickBooks: From Product to Platform Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers in the HBR case study Intuit QuickBooks: From Product to Platform needs to zero down on the relative importance of each factor mentioned in the Strengths, Weakness, Opportunities, and Threats quadrants.
We can provide the relative importance to each factor by assigning relative weights. Weighted SWOT analysis process is a three stage process –
First stage for doing weighted SWOT analysis of the case study Intuit QuickBooks: From Product to Platform is to rank the strengths and weaknesses of the organization. This will help you to assess the most important strengths and weaknesses of the firm and which one of the strengths and weaknesses mentioned in the initial lists are marginal and can be left out.
Second stage for conducting weighted SWOT analysis of the Harvard case study Intuit QuickBooks: From Product to Platform is to give probabilities to the external strategic factors thus better understanding the opportunities and threats arising out of macro environment changes and developments.
Third stage of constructing weighted SWOT analysis of Intuit QuickBooks: From Product to Platform is to provide strategic recommendations includes – joining likelihood of external strategic factors such as opportunities and threats to the internal strategic factors – strengths and weaknesses. You should start with external factors as they will provide the direction of the overall industry. Secondly by joining probabilities with internal strategic factors can help the company not only strategic fit but also the most probably strategic trade-off that Platform Quickbooks needs to make to build a sustainable competitive advantage.
