Greenback And Brothers Case Summary

Based on the map above, each competitor within this industry is operating in a slightly different space than the other. The first competitor, operating within the low differentiation and low cost space is Freedom Tax. Freedom Tax chose to not offer any other services, and instead decided to undercut the prices of their competitors, while franchising out their stores. This strategy of cost leadership is help them attract more price sensitive customers each year. The next competitor is Greenback & Sons, who are offering a more differentiated service by adding an educational portal to their business line, which teaches individuals how to do their own taxes. The last major set of competitors are the CPAs and mom-and-pop shops that are located at

These workers are usually highly specialized and can handle more complex tax and accounting transactions, while also providing other services. The specialization requires more schooling as well as keeping up to date with annual changes to the tax code.
Now in regards to where Texas Taxes is placed on the spectrum, I believe that due to the company’s recent attempt at diversification and differentiation, the company has drastically increased its costs. The issue they are facing, much like what Laust Cass said, is that their customers do not want these other services, and thus their willingness to pay did not increase causing them to lose money. For them, the company lacks internal fit with their diversification choices. In this industry, there are two main types of customers. The first type of customer is the low-income consumer who finds value in the current tax preparation business, but not in the financial hub. The lower income consumer will choose the low cost provider in the long run, which TTI is attempting not to be. In general, this industry is based in costs and without any differentiation; the cost leader should eventually dominate the industry. TTI is attempting to use their tax preparation business as a way to