Intuit's Solutions for Small and Medium-Sized Businesses Intuit's user-friendly accounting and tax software solutions have created a highly profitable business and a loyal customer base. QuickBooks, one of its flagship products, provides accounting and management solutions to small and mediumsized businesses (SMBs) and enjoys monopoly-like market leadership. The relatively low price points, high switching costs, and widespread adoption of the company's accounting solutions leave Intuit well positioned for growth in this attractive market. There are roughly 300,000 new SMBs formed annually in the United States. Intuit also offers payroll and payment services to SMBs. According to the firm, further growth appears promising because only 40 percent of QuickBooks customers use the firm's payroll services and less than 10 percent of those users have adopted Intuit's payment services. While enjoying a leadership position in the SMB market, Intuit may need to increase its R&D expenditures to keep Microsoft and Internet-based competitors at bay. While the firm currently benefits from a strong distribution channel, the advent of cloud computing could level the playing field. For example, multiple providers of accounting solutions already offer their solutions through Google's GOOG App Engine.

To sustain its leadership position in the SMB market, describe the differentiating value proposition that Intuit should offer to customers.