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 - – banking and financial system is disrupted by Bitcoin and other crypto currencies, wage bills are increasing, there is increasing trade war between United States & China, increasing commodity prices, increasing energy prices, customer relationship management is fast transforming because of increasing concerns over data privacy, increasing government debt because of Covid-19 spendings,
digital marketing is dominated by two big players Facebook and Google, talent flight as more people leaving formal jobs, 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 -
Ability to lead change in Strategy & Execution field
– Platform Quickbooks is one of the leading players in its industry. Over the years it has not only transformed the business landscape in its segment but also across the whole industry. The ability to lead change has enabled Platform Quickbooks in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Ability to recruit top talent
– Platform Quickbooks is one of the leading recruiters in the industry. Managers in the Intuit QuickBooks: From Product to Platform are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Training and development
– Platform Quickbooks has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Intuit QuickBooks: From Product to Platform Harvard Business Review case study by analyzing – employees retention, in-house promotion, loyalty, new venture initiation, lack of conflict, and high level of both employees and customer engagement.
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.
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.
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.
Diverse revenue streams
– Platform Quickbooks is present in almost all the verticals within the industry. This has provided firm in Intuit QuickBooks: From Product to Platform case study a diverse revenue stream that has helped it to survive disruptions such as global pandemic in Covid-19, financial disruption of 2008, and supply chain disruption of 2021.
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.
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.
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.
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.
Successful track record of launching new products
– Platform Quickbooks has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Platform Quickbooks has effective processes in place that helps in exploring new product needs, doing quick pilot testing, and then launching the products quickly using its extensive distribution network.
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 -
Increasing silos among functional specialists
– The organizational structure of Platform Quickbooks is dominated by functional specialists. It is not different from other players in the Strategy & Execution segment. Platform Quickbooks needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Platform Quickbooks to focus more on services rather than just following the product 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.
Workers concerns about automation
– As automation is fast increasing in the segment, Platform Quickbooks needs to come up with a strategy to reduce the workers concern regarding automation. Without a clear strategy, it could lead to disruption and uncertainty within the organization.
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 strategic competitive environment developments
– As Intuit QuickBooks: From Product to Platform HBR case study mentions - Platform Quickbooks takes time to assess the upcoming competitions. This has led to missing out on atleast 2-3 big opportunities in the industry in last five years.
Need for greater diversity
– Platform Quickbooks has taken concrete steps on diversity, equity, and inclusion. But the efforts so far has resulted in limited success. It needs to expand the recruitment and selection process to hire more people from the minorities and underprivileged background.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Intuit QuickBooks: From Product to Platform HBR case study still accounts for major business revenue. This dependence on star products in has resulted into insufficient focus on developing new products, even though Platform Quickbooks has relatively successful track record of launching new products.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Intuit QuickBooks: From Product to Platform, it seems that the employees of Platform Quickbooks don’t have comprehensive understanding of the firm’s strategy. This is reflected in number of promotional campaigns over the last few years that had mixed messaging and competing priorities. Some of the strategic activities and services promoted in the promotional campaigns were not consistent with the organization’s strategy.
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.
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.
Capital Spending Reduction
– Even during the low interest decade, Platform Quickbooks has not been able to do capital spending to the tune of the competition. This has resulted into fewer innovations and company facing stiff competition from both existing competitors and new entrants who are disrupting the industry using digital technology.
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 -
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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Platform Quickbooks is facing challenges because of the dominance of functional experts in the organization. Intuit QuickBooks: From Product to Platform case study suggests that firm can utilize new technology to build more coordinated teams and streamline operations and communications using tools such as CAD, Zoom, etc.
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.
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.
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.
Using analytics as competitive advantage
– Platform Quickbooks has spent a significant amount of money and effort to integrate analytics and machine learning into its operations in the sector. This continuous investment in analytics has enabled, as illustrated in the Harvard case study Intuit QuickBooks: From Product to Platform - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Platform Quickbooks to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
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.
Reconfiguring business model
– The expansion of digital payment system, the bringing down of international transactions costs using Bitcoin and other blockchain based currencies, etc can help Platform Quickbooks to reconfigure its entire business model. For example it can used blockchain based technologies to reduce piracy of its products in the big markets such as China. Secondly it can use the popularity of e-commerce in various developing markets to build a Direct to Customer business model rather than the current Channel Heavy distribution network.
Buying journey improvements
– Platform Quickbooks can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Intuit QuickBooks: From Product to Platform suggest that firm can provide automated chats to help consumers solve their own problems, provide online suggestions to get maximum out of the products and services, and help consumers to build a community where they can interact with each other to develop new features and uses.
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.
Building a culture of innovation
– managers at Platform Quickbooks can make experimentation a productive activity and build a culture of innovation using approaches such as – mining transaction data, A/B testing of websites and selling platforms, engaging potential customers over various needs, and building on small ideas in the Strategy & Execution segment.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Platform Quickbooks can use these opportunities to build new business models that can help the communities that Platform Quickbooks operates in. Secondly it can use opportunities from government spending in Strategy & Execution sector.
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.
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 -
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 .
Easy access to finance
– Easy access to finance in Strategy & Execution field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Platform Quickbooks can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
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.
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.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Platform Quickbooks can face downward pressure on margins from increasing competition from international players. The international players have stable revenue in their home market and can use those resources to penetrate prominent markets illustrated in HBR case study Intuit QuickBooks: From Product to Platform .
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.
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.
Regulatory challenges
– Platform Quickbooks needs to prepare for regulatory challenges as consumer protection groups and other pressure groups are vigorously advocating for more regulations on big business - to reduce inequality, to create a level playing field, to product data privacy and consumer privacy, to reduce the influence of big money on democratic institutions, etc. This can lead to significant changes in the Strategy & Execution industry regulations.
New competition
– After the dotcom bust of 2001, financial crisis of 2008-09, the business formation in US economy had declined. But in 2020 alone, there are more than 1.5 million new business applications in United States. This can lead to greater competition for Platform Quickbooks in the Strategy & Execution sector and impact the bottomline of the organization.
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.
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.
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.