Title: QuickBooks of Intuit: Exploring a Path to Asia
Subject Area: Corporate strategy for an extension. Global strategy
Region: United States, China, Japan
Industry: Fin Tech
Company: Intuit Inc.
Challenge: Intuit Inc., based in Mountain View, California, is known for providing functional and easy-to-use financial applications, most notably TurboTax and QuickBooks. For our project, we focused on QuickBooks: an all-encompassing accounting software designed for small business owners to completely integrate their banking, invoicing, bookkeeping and other financial matters. Due to its attractive price and functionality, QuickBooks has grown to be Intuit’s main revenue driver and an industry-leader amongst U.S. accounting software providers. Internationally, however, QuickBooks has failed to gain any traction, as foreign revenue has never surpassed 5% of operations in the company’s history. Therefore, to reinvigorate their foreign presence, our team undertook a comprehensive strategic analysis of two potential destinations for expansion, China and Japan, to help meet a target date of Intuit’s October 2020 Investor Day.
Embedding in Realities of the Industry and Company
Our group was drawn to QuickBooks because of the emerging trend of FinTech in all of the industries we aspire to enter. Therefore, we underwent extensive research to thoroughly cover all of the factors at-hand. To collect the proper data for analysis on the company, industry, and markets, our team thoroughly analyzed Intuit’s recent SEC filings and presentations, as well as third-party articles and data sources. In addition, we engaged in a QuickBooks demo to better understand what makes the product so unique and helpful. Collectively, we were able to gather exhaustive data on Intuit’s internal capabilities, as well as the operating environment in both regions. Using this information, our group applied the following strategic frameworks to properly analyze both countries for entry and capitalize on Intuit’s core competencies:
|· PESTEL||· Porter’s Five Forces
· Industry Life Cycle
|· Value Chain
Generating Value: Findings & Recommendation
Based on the applied frameworks, we made several conclusions:
Through our coursework, professional experience, and research, the team reached a diligent and well-backed solution to the challenge at-hand.
In addition to choosing between China and Japan, our group formulated a detailed entry strategy covering: