Intuit, Inc.: From Products to Services in the Information Age SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Technology & Operations
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Intuit, Inc.: From Products to Services in the Information Age
The advances of the Internet has enabled some companies to dematerialize their products so that digital versions can be personalized and shipped to customers without the usual logistics costs and delays. Once this is achieved, then the opportunities to provide customers with additional services, or to transform from a product-based to a service-based company, could be tremendous. Traces the experience of Intuit in pursuing its digital channel to sell and distribute its products, the challenges faced in making this migration while managing the physical channel, and the new service opportunities that the company created once the digital channel was in place.
Swot Analysis of "Intuit, Inc.: From Products to Services in the Information Age" written by Chuck Holloway, Hau Lee, Lyn Denend includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Intuit Channel facing as an external strategic factors. Some of the topics covered in Intuit, Inc.: From Products to Services in the Information Age case study are - Strategic Management Strategies, Supply chain and Technology & Operations.
Some of the macro environment factors that can be used to understand the Intuit, Inc.: From Products to Services in the Information Age casestudy better are - – challanges to central banks by blockchain based private currencies, technology disruption, central banks are concerned over increasing inflation, cloud computing is disrupting traditional business models, competitive advantages are harder to sustain because of technology dispersion, banking and financial system is disrupted by Bitcoin and other crypto currencies, increasing energy prices,
wage bills are increasing, digital marketing is dominated by two big players Facebook and Google, etc
Introduction to SWOT Analysis of Intuit, Inc.: From Products to Services in the Information Age
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Intuit, Inc.: From Products to Services in the Information Age case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Intuit Channel, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Intuit Channel 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, Inc.: From Products to Services in the Information Age can be done for the following purposes –
1. Strategic planning using facts provided in Intuit, Inc.: From Products to Services in the Information Age case study
2. Improving business portfolio management of Intuit Channel
3. Assessing feasibility of the new initiative in Technology & Operations field.
4. Making a Technology & Operations topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Intuit Channel
Strengths Intuit, Inc.: From Products to Services in the Information Age | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Intuit Channel in Intuit, Inc.: From Products to Services in the Information Age Harvard Business Review case study are -
Ability to lead change in Technology & Operations field
– Intuit Channel 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 Intuit Channel in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
High brand equity
– Intuit Channel has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Intuit Channel to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Strong track record of project management
– Intuit Channel 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
– Intuit Channel is present in almost all the verticals within the industry. This has provided firm in Intuit, Inc.: From Products to Services in the Information Age 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.
Highly skilled collaborators
– Intuit Channel 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, Inc.: From Products to Services in the Information Age HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Training and development
– Intuit Channel has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Intuit, Inc.: From Products to Services in the Information Age 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.
Low bargaining power of suppliers
– Suppliers of Intuit Channel in the sector have low bargaining power. Intuit, Inc.: From Products to Services in the Information Age has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Intuit Channel to manage not only supply disruptions but also source products at highly competitive prices.
Learning organization
- Intuit Channel 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 Intuit Channel is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Intuit, Inc.: From Products to Services in the Information Age Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Sustainable margins compare to other players in Technology & Operations industry
– Intuit, Inc.: From Products to Services in the Information Age firm has clearly differentiated products in the market place. This has enabled Intuit Channel to fetch slight price premium compare to the competitors in the Technology & Operations industry. The sustainable margins have also helped Intuit Channel to invest into research and development (R&D) and innovation.
Organizational Resilience of Intuit Channel
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Intuit Channel does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Digital Transformation in Technology & Operations segment
- digital transformation varies from industry to industry. For Intuit Channel digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Intuit Channel 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.
Effective Research and Development (R&D)
– Intuit Channel has innovation driven culture where significant part of the revenues are spent on the research and development activities. This has resulted in, as mentioned in case study Intuit, Inc.: From Products to Services in the Information Age - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Weaknesses Intuit, Inc.: From Products to Services in the Information Age | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Intuit, Inc.: From Products to Services in the Information Age are -
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Intuit Channel is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Intuit, Inc.: From Products to Services in the Information Age can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Slow decision making process
– As mentioned earlier in the report, Intuit Channel 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. Intuit Channel 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.
Products dominated business model
– Even though Intuit Channel 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, Inc.: From Products to Services in the Information Age should strive to include more intangible value offerings along with its core products and services.
Increasing silos among functional specialists
– The organizational structure of Intuit Channel is dominated by functional specialists. It is not different from other players in the Technology & Operations segment. Intuit Channel needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Intuit Channel to focus more on services rather than just following the product oriented approach.
Workers concerns about automation
– As automation is fast increasing in the segment, Intuit Channel 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.
Need for greater diversity
– Intuit Channel 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, Inc.: From Products to Services in the Information Age 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 Intuit Channel has relatively successful track record of launching new products.
Capital Spending Reduction
– Even during the low interest decade, Intuit Channel 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.
Low market penetration in new markets
– Outside its home market of Intuit Channel, firm in the HBR case study Intuit, Inc.: From Products to Services in the Information Age needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Aligning sales with marketing
– It come across in the case study Intuit, Inc.: From Products to Services in the Information Age 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, Inc.: From Products to Services in the Information Age can leverage the sales team experience to cultivate customer relationships as Intuit Channel is planning to shift buying processes online.
Skills based hiring
– The stress on hiring functional specialists at Intuit Channel 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.
Opportunities Intuit, Inc.: From Products to Services in the Information Age | 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, Inc.: From Products to Services in the Information Age are -
Lowering marketing communication costs
– 5G expansion will open new opportunities for Intuit Channel in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Technology & Operations segment, and it will provide faster access to the consumers.
Learning at scale
– Online learning technologies has now opened space for Intuit Channel 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Intuit Channel is facing challenges because of the dominance of functional experts in the organization. Intuit, Inc.: From Products to Services in the Information Age 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Intuit Channel can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Intuit Channel 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, Inc.: From Products to Services in the Information Age, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Low interest rates
– Even though inflation is raising its head in most developed economies, Intuit Channel 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.
Buying journey improvements
– Intuit Channel can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Intuit, Inc.: From Products to Services in the Information Age 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.
Loyalty marketing
– Intuit Channel 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.
Developing new processes and practices
– Intuit Channel can develop new processes and procedures in Technology & Operations 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.
Leveraging digital technologies
– Intuit Channel 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Intuit Channel can use these opportunities to build new business models that can help the communities that Intuit Channel operates in. Secondly it can use opportunities from government spending in Technology & Operations sector.
Using analytics as competitive advantage
– Intuit Channel 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, Inc.: From Products to Services in the Information Age - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Intuit Channel to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Intuit Channel 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 Intuit Channel to hire the very best people irrespective of their geographical location.
Threats Intuit, Inc.: From Products to Services in the Information Age External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Intuit, Inc.: From Products to Services in the Information Age are -
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 Intuit Channel.
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 Intuit Channel business can come under increasing regulations regarding data privacy, data security, etc.
High dependence on third party suppliers
– Intuit Channel 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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Intuit Channel with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
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. Intuit Channel needs to understand the core reasons impacting the Technology & Operations industry. This will help it in building a better workplace.
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, Inc.: From Products to Services in the Information Age, Intuit Channel may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Technology & Operations .
Regulatory challenges
– Intuit Channel 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 Technology & Operations industry regulations.
Stagnating economy with rate increase
– Intuit Channel can face lack of demand in the market place because of Fed actions to reduce inflation. This can lead to sluggish growth in the economy, lower demands, lower investments, higher borrowing costs, and consolidation in the field.
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 Intuit Channel in the Technology & Operations sector and impact the bottomline of the organization.
Technology acceleration in Forth Industrial Revolution
– Intuit Channel has witnessed rapid integration of technology during Covid-19 in the Technology & Operations industry. As one of the leading players in the industry, Intuit Channel needs to keep up with the evolution of technology in the Technology & Operations 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.
Aging population
– As the populations of most advanced economies are aging, it will lead to high social security costs, higher savings among population, and lower demand for goods and services in the economy. The household savings in US, France, UK, Germany, and Japan are growing faster than predicted because of uncertainty caused by pandemic.
Consumer confidence and its impact on Intuit Channel 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.
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. Intuit Channel 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.
Weighted SWOT Analysis of Intuit, Inc.: From Products to Services in the Information Age 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, Inc.: From Products to Services in the Information Age 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, Inc.: From Products to Services in the Information Age 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, Inc.: From Products to Services in the Information Age 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, Inc.: From Products to Services in the Information Age 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 Intuit Channel needs to make to build a sustainable competitive advantage.
