Porter

Question 1:
Threat of new entrants:
Intuit is a very big brand and well-organized, and customers seems to be loyalty to its product, by 1995, the firm held a 70 percent market share. Intuit found that positive word of mouth and exceptional customer service are its most effective tools, and this result in 8 of 10 customers buys its product. So it is difficult for companies to compete with Intuit. However, the capital to start this business is very low and the profitability is quiet high as Intuit earned $3.1 billion in revenue in 2008. Due to it, it’s attractive for more companies to enter this industry. So the threat of new entrants is low to median.
Bargaining power of suppliers:
There have many suppliers in this industry, and there is a huge competition in this market. So suppliers have very low bargaining power.
Bargaining power of buyers:
Demand for Intuit’s products is seasonal, and it’s concentrated around tax preparation time. Besides, there is more than one supplier in the market and competition gives them more choices and competitive prices. So, it increases the bargaining power of the buyers.
Threats for Substitutes Product:
There is no substitute available in the markets for financial management, tax preparation software programs other than hiring specialized personals in the field which is quiet expensive way of doing so therefore providing no threat to the industry.
Competitive rivalry within an industry: There is a huge competition in the industry and the strongest competitor is Microsoft. What’s more, the barriers to enter this market are low, and it will result in more and more new companies to enter. So the competitive rivalry within an industry is high.
Question 2: