The missions and objectives of Intuit Inc

2033 words (8 pages) Essay

1st Jan 1970 Marketing Reference this

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The guiding mission of Intuit Inc. is to be a “premier innovative growth company that empowers individuals and businesses to achieve their dreams” (Intuit Inc 3). According to Inuit Inc. its objectives are to serve small and medium sized businesses, consumers, accounting professionals and financial institutions (3). The firm’s mission and objectives have been the guiding principles of the firm since its inception in 1983.  As Alexander (48) notes, a firm’s vision, mission and objectives are always the start point of its strategic management in corporate process.

How Intuit has Performed Compared to Rivals during the Past Three Years

Intuit Inc. firm face stiff competition in their business areas both domestically and internationally. Competition has grown in all its business areas. Note that some potential competitors of the firm have greater resource power that ranges from financial might, better marketing tactics and advanced technical knowhow in their products and service provision. However, for the past three financial years, the firm has realized increased growth in its revenue. 

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To begin with, 2008 fiscal year, Intuit Inc realized 3.1 billion dollars revenue. This was an increase of 15percent compared to 2007 fiscal year. In 2009 fiscal period, the company realized 3.183 which translate to four percent growth. For the 2010 fiscal year, the firm realized 3.455 billion dollars which represent a 11 percent increase. This growth was attributed to good performance in small business section of the Intuit Inc and the acquisition of the Digital Insight in early February 2007 (Intuit). This was an impressive performance for the firm given the competition that was being witnessed in the market. However, other giant firms like Microsoft Corp. posted more profit index during the same financial year.  

For instance, fierce competitors of Intuit Inc. include Symantec Corp. the company comparable 2008 fiscal year had a total revenue of 1.540 billion dollars which represented a five percent growth over the comparable period of the previous year (2007) (Symantec Corp). In the 2009 fiscal year, the revenue was valued at 1.67 billion dollars with still represents a five percent growth rate. While in 2010 fiscal year, the firm recorded 1.70 billion dollars which represent a growth rate of one percent. In comparison to Intuit Inc, we realize that Intuit Inc. had made great growth improvement since its growth rate over the same periods; growth rate was higher compared to Symantec Corp.  

On the other hand, Citrix Systems, Inc. which is also a potential competitor to Intuit Inc. had impressive performance in the same period of the past three fiscal periods.  For instance, in 2008 fiscal year, it posted 1.58 billion dollars total revenue which was above the previous 2007 fiscal year where it had posted 1.39 billion dollars (Citrix Systems, Inc). This represented a 14% growth rate which is close to Intuit Inc. growth rate at the same comparable period. In 2009 fiscal year, the firm recorded total profit of 530 million dollars which were up from 451 million dollars of the previous year. This represented a 17 percent growth in its revenue making it to have a much more impressive growth rate that Intuits Inc. For 2010 fiscal year, the firm recorded annual revenue of 1.87 billion dollars which were again a growth representing 16 % increase. This was higher growth rate than Intuit Inc. hence posing a competition threat.   Although the total revenue of Citrix System, Inc. was smaller compared to Intuit Inc, its high growth rate shows that it is expanding its competitive impacts on the market more that Intuit Inc. This therefore poses a fierce competition threat to Intuit Inc.  

Resources and Capabilities Involved in the Intuit Inc.

Intuit Inc. has several resources and capabilities that it applies in its business processes that have continued over the period be value chain for its business activities. This capability comes from the organization of its business. To begin with, it organizes its business into four divisions which are Tax, Small Business Group, Financial Institutions and Other Businesses. This categorization of business operations have given Intuit Inc. better organization of its services compared to its competitors in the market. In comparison to Symantec Corp, which is its closest rival, it has categorized its business operations in terms of small business, mid size business, enterprise business and industry business is posting a small growth rate. This has led to difference in market performance experienced between the two firms.  On the part, Citrix Systems, Inc. it has categorized its business capabilities in terms of desktop, server, network and cloud services that are offered to any kind of business. This provides differences experienced in these companies fiscal performance.  

In addition, the Intuit Inc. has employed success tactics of connecting people to their services and to one another (Intuit Inc). They have carried out through online connection of customers to their services which are designed to provide value and benefits to their customers. They have also connected their services to their software whereby they offer services such as online QuickBooks which is an online payroll services particularly for small businesses. These have continued to serve as a competitive weapon over their rivals (Intuit Inc). Lastly, they connect customer to customer where by customers are able to share ideas and information hence enabling them to solve some problems together. In comparison to its perceived rivals, these services are not offered and therefore they successfully serve as Intuit Inc. competitive advantage.  

Business-Level Tactics in the Digital Book Reader Industry

Digital book reader industry of Intuit Inc. which is attained from its QuickBooks services or what is known as financial management solutions has provided cost leadership for the firm and it acts as its competitive weapon over its market rivals. This product (QuickBooks) is leading small business financial management software at retail level and it has no fierce competition in the market (Intuit Inc). In addition, in terms of products differentiation, Intuit Inc. products are priced competitively on the market. Particularly, QuickBooks which are tailored for retail use is priced at much more competitive prices that make most of the company clientele affords its acquisition. This has served as the firm’s strength point in its business operations as it has continued to provide a sustained competitive advantage over its rivals in the digital book reader industry. 

Intuit Inc. Corporate Strategy 

Ireland, Robert and Michael hold that corporate strategy helps a firm to create a value leading to high performance (211). Relative to this, the corporate strategy for Intuit Inc. has remained to be in businesses that grow where there is high profit and attractive markets and unmet or un-served customer needs (Intuit Inc). The firm capitalizes on this segment of the market by coming up with solutions to these problems. 

Intuit Inc. rationale for pursuing this corporate strategy has been adoption of approaches that meet changing market and technological trends in their operating environment. In addition, the firm in 2008 increased people and business connectivity through laptops, desktops and handheld devices where by people could access their services at any place any time. These capabilities have in turn gave the firm a competitive advantage over its perceived rivals.

Recommendations 

Intuit Inc. is has over its operation period specialized in small and medium size business oriented IT solutions. This paper recommends that it should expand its clientele niche by designing and developing IT products and services that should also serve large scale business to cope with the increasing competition that is ever increasing in the market. By Intuit Inc. expanding its business operations into serving large scale customers, the firm will benefit from the advantages accrued from serving this segment clientele. 

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Since Intuit Inc. is software firm, it is understood that software program production costs are higher but the costs to produce subsequent copies are quite negligible. In connection to this, with Intuit Inc. venture into serving large scale clientele, its total revenue turnover will increase since initial costs of production of products will not be different with their current production costs for the small and medium sized businesses. In addition, this will increase their revenue turnover and give them a much stronger competitive edge against their rivals.  

Moreover, Symantec Corp. which is a closed rival of Intuit Inc. has categorized its business operations into the same business niche as Intuit Inc. whereby it has also specialized in small and medium size clientele. This gives Intuit a hard survival life since stiff competition is concentrated in this segment of the market. Diversification of business operations to large scale clientele base will provides an extended niche for Intuit Inc. businesses and there able to cushion competition in the environment.  

The paper also recommends that Intuit Inc. should introduce new and more enhanced software products and services besides what they currently offer. It is important to keep in mind that technology is fast improving and therefore, for a firm in the software industry, it should keep developing new solutions for its market niche to remain relevant in the industry.  

It is imperative to know that customer needs in the market keeps on changing and therefore, as a service and product provider, the firm needs to keep in pace with these customer needs and provide solutions that meet their needs more amicably. To accomplish successfully this, the firm needs to continue nurturing and developing skills and capabilities that will be able to drive the firm into new emerging technologies.

However, in doing so, the firm should be able to carry out their current products enhancement whereby it should be able to improve on the functionalities of their current products. For example, their QuickBooks should be enhanced and more functionality added to address new emerging requirements of their clients. This is healthy for the firm’s survival since it will be able to retain their current client base while winning the confidence of the new clients which will make the firm to remain competitive in the market.  

Lastly, the paper recommends that the firm should increase their distribution suppliers. Currently, Intuit Inc. has only chosen distribution of its desktop software products to a single third party provider, poor performance of this supplier is likely to harm its revenue turnover (Intuit Inc. 20). Reliance of product supply by one supplier means that the firm bases their market survival on only one entity which infers that supply efficiency or inefficiency entirely relies on one entity. It is therefore advisable that the firm contract other additional suppliers to cushion against chances of poor performance by a single supplier.  This will guarantee stable market performance.  

Works Cited

Alexander, Pock. Strategic Management in Islamic Finance. New York: Wiesbaden, 2007.

Citrix Systems, Inc. Citrix Reports Record Fourth Quarter and Fiscal Year 2007 Financial Results. 21 April 2011

Intuit Inc. United States Securities and Exchange Commission. USA: Edgar Online, Inc, 2009.

Intuit. Intuit Fiscal 2007 Revenue Grows 17 Percent. 20 April 2011 < http://investors.intuit.com/releasedetail.cfm?ReleaseID=349748/>.

The guiding mission of Intuit Inc. is to be a “premier innovative growth company that empowers individuals and businesses to achieve their dreams” (Intuit Inc 3). According to Inuit Inc. its objectives are to serve small and medium sized businesses, consumers, accounting professionals and financial institutions (3). The firm’s mission and objectives have been the guiding principles of the firm since its inception in 1983.  As Alexander (48) notes, a firm’s vision, mission and objectives are always the start point of its strategic management in corporate process.

How Intuit has Performed Compared to Rivals during the Past Three Years

Intuit Inc. firm face stiff competition in their business areas both domestically and internationally. Competition has grown in all its business areas. Note that some potential competitors of the firm have greater resource power that ranges from financial might, better marketing tactics and advanced technical knowhow in their products and service provision. However, for the past three financial years, the firm has realized increased growth in its revenue. 

To begin with, 2008 fiscal year, Intuit Inc realized 3.1 billion dollars revenue. This was an increase of 15percent compared to 2007 fiscal year. In 2009 fiscal period, the company realized 3.183 which translate to four percent growth. For the 2010 fiscal year, the firm realized 3.455 billion dollars which represent a 11 percent increase. This growth was attributed to good performance in small business section of the Intuit Inc and the acquisition of the Digital Insight in early February 2007 (Intuit). This was an impressive performance for the firm given the competition that was being witnessed in the market. However, other giant firms like Microsoft Corp. posted more profit index during the same financial year.  

For instance, fierce competitors of Intuit Inc. include Symantec Corp. the company comparable 2008 fiscal year had a total revenue of 1.540 billion dollars which represented a five percent growth over the comparable period of the previous year (2007) (Symantec Corp). In the 2009 fiscal year, the revenue was valued at 1.67 billion dollars with still represents a five percent growth rate. While in 2010 fiscal year, the firm recorded 1.70 billion dollars which represent a growth rate of one percent. In comparison to Intuit Inc, we realize that Intuit Inc. had made great growth improvement since its growth rate over the same periods; growth rate was higher compared to Symantec Corp.  

On the other hand, Citrix Systems, Inc. which is also a potential competitor to Intuit Inc. had impressive performance in the same period of the past three fiscal periods.  For instance, in 2008 fiscal year, it posted 1.58 billion dollars total revenue which was above the previous 2007 fiscal year where it had posted 1.39 billion dollars (Citrix Systems, Inc). This represented a 14% growth rate which is close to Intuit Inc. growth rate at the same comparable period. In 2009 fiscal year, the firm recorded total profit of 530 million dollars which were up from 451 million dollars of the previous year. This represented a 17 percent growth in its revenue making it to have a much more impressive growth rate that Intuits Inc. For 2010 fiscal year, the firm recorded annual revenue of 1.87 billion dollars which were again a growth representing 16 % increase. This was higher growth rate than Intuit Inc. hence posing a competition threat.   Although the total revenue of Citrix System, Inc. was smaller compared to Intuit Inc, its high growth rate shows that it is expanding its competitive impacts on the market more that Intuit Inc. This therefore poses a fierce competition threat to Intuit Inc.  

Resources and Capabilities Involved in the Intuit Inc.

Intuit Inc. has several resources and capabilities that it applies in its business processes that have continued over the period be value chain for its business activities. This capability comes from the organization of its business. To begin with, it organizes its business into four divisions which are Tax, Small Business Group, Financial Institutions and Other Businesses. This categorization of business operations have given Intuit Inc. better organization of its services compared to its competitors in the market. In comparison to Symantec Corp, which is its closest rival, it has categorized its business operations in terms of small business, mid size business, enterprise business and industry business is posting a small growth rate. This has led to difference in market performance experienced between the two firms.  On the part, Citrix Systems, Inc. it has categorized its business capabilities in terms of desktop, server, network and cloud services that are offered to any kind of business. This provides differences experienced in these companies fiscal performance.  

In addition, the Intuit Inc. has employed success tactics of connecting people to their services and to one another (Intuit Inc). They have carried out through online connection of customers to their services which are designed to provide value and benefits to their customers. They have also connected their services to their software whereby they offer services such as online QuickBooks which is an online payroll services particularly for small businesses. These have continued to serve as a competitive weapon over their rivals (Intuit Inc). Lastly, they connect customer to customer where by customers are able to share ideas and information hence enabling them to solve some problems together. In comparison to its perceived rivals, these services are not offered and therefore they successfully serve as Intuit Inc. competitive advantage.  

Business-Level Tactics in the Digital Book Reader Industry

Digital book reader industry of Intuit Inc. which is attained from its QuickBooks services or what is known as financial management solutions has provided cost leadership for the firm and it acts as its competitive weapon over its market rivals. This product (QuickBooks) is leading small business financial management software at retail level and it has no fierce competition in the market (Intuit Inc). In addition, in terms of products differentiation, Intuit Inc. products are priced competitively on the market. Particularly, QuickBooks which are tailored for retail use is priced at much more competitive prices that make most of the company clientele affords its acquisition. This has served as the firm’s strength point in its business operations as it has continued to provide a sustained competitive advantage over its rivals in the digital book reader industry. 

Intuit Inc. Corporate Strategy 

Ireland, Robert and Michael hold that corporate strategy helps a firm to create a value leading to high performance (211). Relative to this, the corporate strategy for Intuit Inc. has remained to be in businesses that grow where there is high profit and attractive markets and unmet or un-served customer needs (Intuit Inc). The firm capitalizes on this segment of the market by coming up with solutions to these problems. 

Intuit Inc. rationale for pursuing this corporate strategy has been adoption of approaches that meet changing market and technological trends in their operating environment. In addition, the firm in 2008 increased people and business connectivity through laptops, desktops and handheld devices where by people could access their services at any place any time. These capabilities have in turn gave the firm a competitive advantage over its perceived rivals.

Recommendations 

Intuit Inc. is has over its operation period specialized in small and medium size business oriented IT solutions. This paper recommends that it should expand its clientele niche by designing and developing IT products and services that should also serve large scale business to cope with the increasing competition that is ever increasing in the market. By Intuit Inc. expanding its business operations into serving large scale customers, the firm will benefit from the advantages accrued from serving this segment clientele. 

Since Intuit Inc. is software firm, it is understood that software program production costs are higher but the costs to produce subsequent copies are quite negligible. In connection to this, with Intuit Inc. venture into serving large scale clientele, its total revenue turnover will increase since initial costs of production of products will not be different with their current production costs for the small and medium sized businesses. In addition, this will increase their revenue turnover and give them a much stronger competitive edge against their rivals.  

Moreover, Symantec Corp. which is a closed rival of Intuit Inc. has categorized its business operations into the same business niche as Intuit Inc. whereby it has also specialized in small and medium size clientele. This gives Intuit a hard survival life since stiff competition is concentrated in this segment of the market. Diversification of business operations to large scale clientele base will provides an extended niche for Intuit Inc. businesses and there able to cushion competition in the environment.  

The paper also recommends that Intuit Inc. should introduce new and more enhanced software products and services besides what they currently offer. It is important to keep in mind that technology is fast improving and therefore, for a firm in the software industry, it should keep developing new solutions for its market niche to remain relevant in the industry.  

It is imperative to know that customer needs in the market keeps on changing and therefore, as a service and product provider, the firm needs to keep in pace with these customer needs and provide solutions that meet their needs more amicably. To accomplish successfully this, the firm needs to continue nurturing and developing skills and capabilities that will be able to drive the firm into new emerging technologies.

However, in doing so, the firm should be able to carry out their current products enhancement whereby it should be able to improve on the functionalities of their current products. For example, their QuickBooks should be enhanced and more functionality added to address new emerging requirements of their clients. This is healthy for the firm’s survival since it will be able to retain their current client base while winning the confidence of the new clients which will make the firm to remain competitive in the market.  

Lastly, the paper recommends that the firm should increase their distribution suppliers. Currently, Intuit Inc. has only chosen distribution of its desktop software products to a single third party provider, poor performance of this supplier is likely to harm its revenue turnover (Intuit Inc. 20). Reliance of product supply by one supplier means that the firm bases their market survival on only one entity which infers that supply efficiency or inefficiency entirely relies on one entity. It is therefore advisable that the firm contract other additional suppliers to cushion against chances of poor performance by a single supplier.  This will guarantee stable market performance.  

Works Cited

Alexander, Pock. Strategic Management in Islamic Finance. New York: Wiesbaden, 2007.

Citrix Systems, Inc. Citrix Reports Record Fourth Quarter and Fiscal Year 2007 Financial Results. 21 April 2011

Intuit Inc. United States Securities and Exchange Commission. USA: Edgar Online, Inc, 2009.

Intuit. Intuit Fiscal 2007 Revenue Grows 17 Percent. 20 April 2011 < http://investors.intuit.com/releasedetail.cfm?ReleaseID=349748/>.

Ireland, Duane, Hoskisson Robert, and Hitt Michael. Competing for Advantage. USA: Thomson South-Western, 2008.

Symantec Corp. Symantec Closes Fiscal Year 2007 with Solid March Quarter. 21 April 2011

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