Intuit: Turbo Tax PersonalPro - A Tale of Two Entrepreneurs SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Innovation & Entrepreneurship
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Intuit: Turbo Tax PersonalPro - A Tale of Two Entrepreneurs
The case tells the story of a product manager within Intuit who develops an idea for a new product that spans two of the company's existing business units-professional tax software, sold to accountants, and the consumer focused TurboTax product. The new product -TurboTax Personal Pro-connects consumers with professional accountants online, allowing them to have their taxes prepared by a professional. The cycle of product development transpires within the larger, corporate context of Intuit, where founder Scott Cook has been attempting to transform the enterprise into a leaner, more innovative company. The case describes in detail the lean startup methods used by the new product team, and how their attempts bump up against the existing, entrenched systems and processes of the larger enterprise.
Authors :: Shikhar Ghosh, Joseph Fuller, Michael Roberts
Swot Analysis of "Intuit: Turbo Tax PersonalPro - A Tale of Two Entrepreneurs" written by Shikhar Ghosh, Joseph Fuller, Michael Roberts includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Intuit Turbotax facing as an external strategic factors. Some of the topics covered in Intuit: Turbo Tax PersonalPro - A Tale of Two Entrepreneurs case study are - Strategic Management Strategies, Entrepreneurial management, Product development, Technology and Innovation & Entrepreneurship.
Some of the macro environment factors that can be used to understand the Intuit: Turbo Tax PersonalPro - A Tale of Two Entrepreneurs casestudy better are - – digital marketing is dominated by two big players Facebook and Google, increasing inequality as vast percentage of new income is going to the top 1%, there is backlash against globalization, banking and financial system is disrupted by Bitcoin and other crypto currencies, competitive advantages are harder to sustain because of technology dispersion, increasing energy prices, challanges to central banks by blockchain based private currencies,
there is increasing trade war between United States & China, wage bills are increasing, etc
Introduction to SWOT Analysis of Intuit: Turbo Tax PersonalPro - A Tale of Two Entrepreneurs
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Intuit: Turbo Tax PersonalPro - A Tale of Two Entrepreneurs case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Intuit Turbotax, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Intuit Turbotax 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: Turbo Tax PersonalPro - A Tale of Two Entrepreneurs can be done for the following purposes –
1. Strategic planning using facts provided in Intuit: Turbo Tax PersonalPro - A Tale of Two Entrepreneurs case study
2. Improving business portfolio management of Intuit Turbotax
3. Assessing feasibility of the new initiative in Innovation & Entrepreneurship field.
4. Making a Innovation & Entrepreneurship topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Intuit Turbotax
Strengths Intuit: Turbo Tax PersonalPro - A Tale of Two Entrepreneurs | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Intuit Turbotax in Intuit: Turbo Tax PersonalPro - A Tale of Two Entrepreneurs Harvard Business Review case study are -
Organizational Resilience of Intuit Turbotax
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Intuit Turbotax does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Analytics focus
– Intuit Turbotax 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 Shikhar Ghosh, Joseph Fuller, Michael Roberts 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.
Successful track record of launching new products
– Intuit Turbotax has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Intuit Turbotax 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.
High brand equity
– Intuit Turbotax has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Intuit Turbotax to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Cross disciplinary teams
– Horizontal connected teams at the Intuit Turbotax 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.
Superior customer experience
– The customer experience strategy of Intuit Turbotax in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Low bargaining power of suppliers
– Suppliers of Intuit Turbotax in the sector have low bargaining power. Intuit: Turbo Tax PersonalPro - A Tale of Two Entrepreneurs has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Intuit Turbotax to manage not only supply disruptions but also source products at highly competitive prices.
Learning organization
- Intuit Turbotax 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 Turbotax is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Intuit: Turbo Tax PersonalPro - A Tale of Two Entrepreneurs Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Training and development
– Intuit Turbotax has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Intuit: Turbo Tax PersonalPro - A Tale of Two Entrepreneurs 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.
High switching costs
– The high switching costs that Intuit Turbotax has built up over years in its products and services combo offer has resulted in high retention of customers, lower marketing costs, and greater ability of the firm to focus on its customers.
Digital Transformation in Innovation & Entrepreneurship segment
- digital transformation varies from industry to industry. For Intuit Turbotax digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Intuit Turbotax 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.
Operational resilience
– The operational resilience strategy in the Intuit: Turbo Tax PersonalPro - A Tale of Two Entrepreneurs 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.
Weaknesses Intuit: Turbo Tax PersonalPro - A Tale of Two Entrepreneurs | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Intuit: Turbo Tax PersonalPro - A Tale of Two Entrepreneurs are -
High bargaining power of channel partners
– Because of the regulatory requirements, Shikhar Ghosh, Joseph Fuller, Michael Roberts suggests that, Intuit Turbotax is facing high bargaining power of the channel partners. So far it has not able to streamline the operations to reduce the bargaining power of the value chain partners in the industry.
Workers concerns about automation
– As automation is fast increasing in the segment, Intuit Turbotax 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 Turbotax 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.
Aligning sales with marketing
– It come across in the case study Intuit: Turbo Tax PersonalPro - A Tale of Two Entrepreneurs 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: Turbo Tax PersonalPro - A Tale of Two Entrepreneurs can leverage the sales team experience to cultivate customer relationships as Intuit Turbotax is planning to shift buying processes online.
Products dominated business model
– Even though Intuit Turbotax 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: Turbo Tax PersonalPro - A Tale of Two Entrepreneurs should strive to include more intangible value offerings along with its core products and services.
No frontier risks strategy
– After analyzing the HBR case study Intuit: Turbo Tax PersonalPro - A Tale of Two Entrepreneurs, it seems that company is thinking about the frontier risks that can impact Innovation & Entrepreneurship 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.
Capital Spending Reduction
– Even during the low interest decade, Intuit Turbotax 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.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Intuit: Turbo Tax PersonalPro - A Tale of Two Entrepreneurs, in the dynamic environment Intuit Turbotax has struggled to respond to the nimble upstart competition. Intuit Turbotax has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
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 Intuit Turbotax supply chain. Even after few cautionary changes mentioned in the HBR case study - Intuit: Turbo Tax PersonalPro - A Tale of Two Entrepreneurs, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Intuit Turbotax vulnerable to further global disruptions in South East Asia.
Skills based hiring
– The stress on hiring functional specialists at Intuit Turbotax 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.
Increasing silos among functional specialists
– The organizational structure of Intuit Turbotax is dominated by functional specialists. It is not different from other players in the Innovation & Entrepreneurship segment. Intuit Turbotax needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Intuit Turbotax to focus more on services rather than just following the product oriented approach.
Opportunities Intuit: Turbo Tax PersonalPro - A Tale of Two Entrepreneurs | 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: Turbo Tax PersonalPro - A Tale of Two Entrepreneurs are -
Better consumer reach
– The expansion of the 5G network will help Intuit Turbotax to increase its market reach. Intuit Turbotax 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.
Changes in consumer behavior post Covid-19
– Consumer behavior has changed in the Innovation & Entrepreneurship industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Intuit Turbotax can take advantage of these changes in consumer behavior to build a far more efficient business model. For example consumer regular ordering of products can reduce both last mile delivery costs and market penetration costs. Intuit Turbotax can further use this consumer data to build better customer loyalty, provide better products and service collection, and improve the value proposition in inflationary times.
Using analytics as competitive advantage
– Intuit Turbotax 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: Turbo Tax PersonalPro - A Tale of Two Entrepreneurs - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Intuit Turbotax to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Buying journey improvements
– Intuit Turbotax can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Intuit: Turbo Tax PersonalPro - A Tale of Two Entrepreneurs 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.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Innovation & Entrepreneurship industry, but it has also influenced the consumer preferences. Intuit Turbotax can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Leveraging digital technologies
– Intuit Turbotax 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.
Manufacturing automation
– Intuit Turbotax can use the latest technology developments to improve its manufacturing and designing process in Innovation & Entrepreneurship 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Intuit Turbotax 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 Turbotax 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: Turbo Tax PersonalPro - A Tale of Two Entrepreneurs, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Intuit Turbotax in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Innovation & Entrepreneurship segment, and it will provide faster access to the consumers.
Low interest rates
– Even though inflation is raising its head in most developed economies, Intuit Turbotax 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.
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 Turbotax can use these opportunities to build new business models that can help the communities that Intuit Turbotax operates in. Secondly it can use opportunities from government spending in Innovation & Entrepreneurship sector.
Identify volunteer opportunities
– Covid-19 has impacted working population in two ways – it has led to people soul searching about their professional choices, resulting in mass resignation. Secondly it has encouraged people to do things that they are passionate about. This has opened opportunities for businesses to build volunteer oriented socially driven projects. Intuit Turbotax can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Threats Intuit: Turbo Tax PersonalPro - A Tale of Two Entrepreneurs External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Intuit: Turbo Tax PersonalPro - A Tale of Two Entrepreneurs are -
Regulatory challenges
– Intuit Turbotax 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 Innovation & Entrepreneurship 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 Intuit Turbotax in the Innovation & Entrepreneurship sector and impact the bottomline of the organization.
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 Turbotax 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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Intuit Turbotax 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 Turbotax needs to understand the core reasons impacting the Innovation & Entrepreneurship industry. This will help it in building a better workplace.
Stagnating economy with rate increase
– Intuit Turbotax 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.
Environmental challenges
– Intuit Turbotax needs to have a robust strategy against the disruptions arising from climate change and energy requirements. EU has identified it as key priority area and spending 30% of its 880 billion Euros European post Covid-19 recovery funds on green technology. Intuit Turbotax can take advantage of this fund but it will also bring new competitors in the Innovation & Entrepreneurship industry.
Shortening product life cycle
– it is one of the major threat that Intuit Turbotax is facing in Innovation & Entrepreneurship sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
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: Turbo Tax PersonalPro - A Tale of Two Entrepreneurs, Intuit Turbotax may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Innovation & Entrepreneurship .
Increasing wage structure of Intuit Turbotax
– 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 Intuit Turbotax.
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.
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 Turbotax business can come under increasing regulations regarding data privacy, data security, etc.
Technology acceleration in Forth Industrial Revolution
– Intuit Turbotax has witnessed rapid integration of technology during Covid-19 in the Innovation & Entrepreneurship industry. As one of the leading players in the industry, Intuit Turbotax needs to keep up with the evolution of technology in the Innovation & Entrepreneurship 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.
Weighted SWOT Analysis of Intuit: Turbo Tax PersonalPro - A Tale of Two Entrepreneurs 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: Turbo Tax PersonalPro - A Tale of Two Entrepreneurs 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: Turbo Tax PersonalPro - A Tale of Two Entrepreneurs 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: Turbo Tax PersonalPro - A Tale of Two Entrepreneurs 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: Turbo Tax PersonalPro - A Tale of Two Entrepreneurs 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 Turbotax needs to make to build a sustainable competitive advantage.
