Intuit

Porter’s five forces model is used to analyze the competitive power of a company in a business. They are as follows:
1) Buyer power
2) Supplier power
3) Threat of Substitution
4) Threat of new entrants
5) Industry Competitors

Intuit is a well-known U.S based software development company that sells financial and tax solution software. The article discusses the company’s growth and its journey to success. Applying the five forces model on Intuit it can be determined as follows:

1) Buyer power- the buyers of Intuit software are the small and medium sized companies and also individuals. As per the article, customer satisfaction has been Intuit’s foremost priority. It spends about 20 percent of its net revenues per year on consumer research. Intuit has always worked towards finding out how their products are being used and if it is meeting all the needs of a consumer due to the ever changing technology and also the competition in the industry. It also conducts various researches with consumers participating in it and find out their feedback and look for improvement.   Due to this excellent customer service and technologically updated products, Inuit has maintained a strong customer base, which also brings loyalty to their company. Hence, according to me the buyer power is weak, since there is no room for complaints from Intuit.

2) Supplier Power- Intuit is an independent software development company. It is its own supplier. Intuit has always given their best to its consumers by providing simple solutions and good customer service. The consumer response has always been positive and majority of the consumers use Intuit software. Since there is great customer loyalty attached, they will always prefer to choose Intuit Software to other software. As mentioned in the article about 8 out 10 customers buy the product, which is marketed through, word-of-mouth. This definitely makes Intuit a strong supplier and increases the supplier power.

3) Threat of...