H&R Block's ability to operate with consumer-facing operations may give it similar advantages to Blockbuster Video in the DVD rental business as it competes against Netflix and others -- the customer may need some in-person support while primarily using the online and software products.
Conclusion
H&R Block needs to rethink its strategies in order to face increasing competition from other quarters. Although it has dominated the in-person tax preparation industry, its primary growth has come from other areas. It will need to maintain this tax-preparation side and grow it, as it is an important 'feeder' to the rest of its businesses.
H&R Block must also be an active participant in the national debate about financial data and consumer lending. By deriving a clear corporate ethics statement and policies, H&R Block has the opportunity to limit the damage to its reputation caused by "predatory" practices as perceived by politicians and the popular press.
Finally, H&R Block is in danger of disruption to its core business by others with different approaches. As Intuit and others pursue H&R Block's...
(2007). Our Company: A Humble History. Retrieved August 30, 2007, from H&R Block: http://www.hrblock.com/company/history/hist.html
Hood, J. (2006, February 26). There's No Escaping Taxes, but Tax Scams and Outrages are another Matter. Consumer Affairs, p. n.p.
NAMC. (2006). The U.S. Accounting and Tax Preparation Industry Includes about 90,000 Firms with Combined Annual Revenue of $65 Billion. Dublin: NAMC.
White, K. (2006, January 23). Online tax preparation may no longer be free. Deseret News, p. n.p.
Wire, B. (2007, August 30). H&R Block Reports Fiscal 2008 First Quarter Results. Retrieved August 30, 2007, from Business Wire: http://home.businesswire.com/portal/site/google/index.jsp?ndmViewId=news_view&newsId=20070830005297&newsLang=en
Based 2007 revenues; note that 1st quarter revenues are almost half of overall revenues, at $2,351 billion in the first fiscal quarter to April, 2007. (Wire, 2007)
H&R Block: Case Study
