Xero is a public company specializing in accounting software for small businesses, it was founded in 2006 in New Zealand (Xero Story, 2014, para.2). The company uses the business model; software as a service by using cloud based accounting for its customers. After its initial success the company expended to Australia in 2011 followed by the United Kingdom and United States in 2012. Today it operates in more than 100 countries with 200,000 paying customers.
The company employs more than 600 people around the world with its main headquarters based in Wellington, New Zealand. With its continued growth the company has been called ‘Apple of accounting’ (Robins, 2013, para.1).
Xero’s Vision is to be “The global leader of small business accounting” and its Mission of “Grow prosperity by connecting people, money and resources with beautifully designed software“(Xero Briefing, 2012, pg.29). Xero’s main focus lies with how the customer can best interact with its software to make it user-friendly and at the same time powerful.
Xero provides a growing family of connected solutions (Xero Story, 2014, para.6):
Client accounting for small business available anywhere, at any time and on mobile devices
Accountant tools for management reporting and final accounts production
Personal financial management
Currently a majority of Xero’s customers are based in Australia (45%), followed with New Zealand (20%), UK (19%) and USA / Rest of the world (16%) (First NZ Capital, 2013, pg.2], this shows that Xero has some major growth opportunities especially in the USA.
Xero is a financial accounting firm that provides its product as a service which requires it to comply different laws in regards to data protection laws which could impact the company as it may require it to start hosting its data inside Australia.
Due to the global economic crisis (GEC) the small business sector may not be able to afford the monthly fees charged by Xero, therefore they may lose customers to a competitor who charges lower prices.
Australian businesses are getting more worried about their data privacy with the recent NSA allegations coming out this may cause them to stick to a company that will keep the data within (Australia The Australian, 2014, para.1). Technology
Since Xero is based on a cloud platform technology has a big impact on the business, if Xero suffers downtime with their servers or other issue this can seriously effect customer trust and greatly effects its brand image. If a competitor for example is able to do real-time bank feeds instead of daily or with more details this can create a competitive advantage for the competitor which can take market share away from Xero.
Changing legislation can effect Xero in a major way as they are not only based in Australia but around the world with all information held collectively. Therefore by changing the legislation in one country or even a state can affect the...